Massachusetts State Rep. Francisco Paulino has been arrested and charged for alleged pandemic benefit fraud, the U.S. Attorney’s Office and FBI Boston announced Wednesday morning.
A criminal complaint filed Tuesday in U.S. District Court in Boston charges Paulino, who represents the 16th Essex District, which includes Methuen and Lawrence, with wire fraud and money laundering. It wasn’t immediately clear if Paulino had an attorney who could speak to the charges.
House Speaker Ron Mariano called the charges “extremely concerning” and said the House would “closely monitor the legal proceedings and, upon their conclusion, take appropriate action if necessary to ensure accountability.”
Prosecutors say Paulino owned and operated Madison Tax, LLC and Madison Mortgage Inc. in Lawrence. Beginning in or around April 2020 and continuing until at least December 2021, prosecutors allege…
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.