Local News
Rep. Francisco Paulino fraudulently obtained more than $700,000 in federal pandemic relief funds, prosecutors alleged.
State Rep. Francisco Paulino, a Democrat from Methuen, was arrested Wednesday morning after a grand jury indicted him on charges of pandemic relief fraud, U.S. Attorney Leah Foley announced. Paulino allegedly schemed to fraudulently obtain more than $700,000 in federal pandemic-related relief funds.
He faces eight charges of aiding and abetting wire fraud and three charges of aiding and abetting money laundering.
Paulino allegedly used his tax-preparation company, the identities of others, and intermediaries to fraudulently obtain federal pandemic relief funds that were funneled into personal and business accounts, according to a 24-page indictment. Some of these…
PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.