Cape Cod state legislator pleads not guilty to federal fraud charges

A Democratic state legislator from Dennis was arrested Friday morning on federal charges he defrauded a local trade association of tens of thousands of dollars for personal and political campaign expenses, and then falsified records to cover it up.

State Rep. Chris Flanagan, 37, pleaded not guilty to five counts of wire fraud and one count of falsification of records on Friday afternoon at the Moakley Courthouse. He was released without needing to post bail.

U.S. Attorney for Massachusetts Leah Foley called the charges an "appalling breach of public trust."

"Flanagan defrauded the very organization he was supposed to serve — allegedly funneling tens of thousands of dollars into his own pockets to pay off personal bills, buy luxury items and bankroll his political campaign," Foley said in a statement.

According to the federal indictment, Flanagan served as the executive officer of the Home Builders Association in Cape Cod from 2019 to mid-2024. In that capacity, Flanagan had signatory authority over the professional trade association's bank accounts.

Prosecutors allege Flanagan was facing personal financial difficulty as early as October 2021, with thousands of dollars in credit card debt, missed mortgage payments, and bank overdraft fees.

To help cover those debts, Flanagan siphoned out a total of $36,000 from the association's account, according to the indictment. Flanagan also allegedly bought a portable Bluetooth speaker, a personal air conditioner, more than $1,000 of men’s ties, dress shirts, slacks and sports coats at Macy's, and "personal psychic services."

In addition, prosecutors said that in January 2023, Flanagan transferred $10,000 of the association's funds to his personal campaign account for state representative.

Flanagan's attorney, Greg Henning, said outside court that Flanagan is "looking forward to getting back to seeing his wife and his three kids."

"He's recently had a heart surgery and some other medical issues, so he's just looking forward to getting home and getting some rest. There's no further comment at this time," Henning said.

Calls for Flanagan to resign his seat in the House of Representatives came in quickly Friday. But Henning would not answer when asked if his client would step down.

Gov. Maura Healey said the allegations threaten the State House's work.

"These are serious allegations against Representative Flanagan that threaten to undermine the important work of the Legislature and cast doubt on his ability to faithfully serve his constituents. He should resign," she said in a statement to the State House News Service.

After news of the arrest, the Massachusetts Republican Party called for Flanagan's resignation — for the second time.

The party called for him to step down after a previous investigation by the Office of Campaign and Political Finance resulted in Flanagan admitting in May 2024 that he falsified a mailer that went out during his first campaign. Flanagan told investigators that he created a false identity, called "Jeanne Louise," to conceal the source of the mailers.

"The federal charges only confirm what was already evident: Chris Flanagan is unfit to serve, and Massachusetts Democrats must demand his resignation now," MassGOP Chair Amy Carnevale said in a statement.

House Minority Leader Bradley H. Jones Jr., of North Reading, said Flanagan "betrayed his oath of office" and also called for his resignation.

“Representative Flanagan’s arrest is disturbing but not surprising," said Jones in a statement. "We have known for several months about the ongoing investigation into these serious charges of misappropriating funds, but now that a court case is moving forward, it is clear what must be done."

House Speaker Ron Mariano called the charges against Flanagan "extraordinarily concerning" in a statement, saying they "undermine public trust in the Legislature."

"The House will continue to monitor the legal process as it plays out, and will take the appropriate steps if necessary to ensure accountability," he said.

With reporting from Colin A. Young of the State House News Service.