A state representative from Cape Cod was arrested Friday morning for an alleged financial fraud scheme that the U.S. Attorney for Massachusetts described as an “appalling breach of public trust.”

Dennis Democrat Chris Flanagan was indicted by a federal grand jury on five counts of wire fraud and one count of records falsification.

At his initial court appearance Friday afternoon, Flanagan pleaded not guilty to all six counts, each of which carries a maximum prison sentence of up to 20 years.

Flanagan is accused of stealing $36,000 from his then-employer, the Home Builders and Remodelers Association of Cape Cod, over a period from November 2021 to January 2023. He allegedly spent some of the money in support of his campaign — including campaign T-shirts — as well as on personal bills, psychic services and clothing.

He was escorted into the courtroom with handcuffs, a muted expression, a light plaid shirt and violet pants. He declined to make any statements beyond entering his plea and confirming an understanding of the conditions of his release — conditions that include a surrendering his passport and reporting to probation.

Flanagan was released on no bond and exited the courthouse alongside his lawyer Greg Henning, declining to answer questions about potential resignation or the allegations contained within the indictment.

Flanagan’s attorney, Henning, escorted the state representative to a car, then told reporters that Flanagan was eager to get home to his wife and three children, and to rest in light of a health issues.

“Mr. Flanagan’s been released on no bond, he’s not in custody,” Henning said. “He had heart surgery last week, so he’s looking forward to getting back to his family and getting some rest and recuperation.”

Some top Democrats and Republicans called for his resignation in light of the indictment.

Gov. Maura Healey said Friday that Flanagan should resign, saying the allegations against him “threaten to undermine the important work of the Legislature and cast doubt on his ability to faithfully serve his constituents.”

Flanagan’s fellow Cape Cod Democrat, state Sen. Julian Cyr, also called for him to resign his seat, as did the Massachusetts Republican Party.

House Minority Leader Brad Jones said Flanagan should resign, calling the arrest “disturbing but not surprising.”

Jones, a North Reading Republican, had asked House Speaker Ron Mariano in January to have the House Ethics Committee launch an “immediate and thorough investigation” into the allegations against Flanagan. He said that, if Flanagan refuses to resign, then Mariano “should immediately authorize and direct the House Ethics Committee to begin proceedings in this matter.”

Barnstable Police acknowledged in January that they had received a report of “potential criminal activity” involving Flanagan in recent months and that the U.S. Attorney’s Office in Boston was investigating.

In a statement, Mariano called the allegations “extraordinarily concerning” but stopped short of calling for his resignation.

“While every American is entitled to due process, the charges that have been brought against Representative Flanagan are extraordinarily concerning, and undermine public trust in the Legislature,” Mariano wrote. “The House will continue to monitor the legal process as it plays out, and will take the appropriate steps if necessary to ensure accountability.”

Flanagan, 37, was sworn in to his second term representing Dennis, Yarmouth and Brewster in January, after running unopposed in last year’s Democratic primary and winning the general election with 57% of the vote. State payroll records show he earns an annual salary of $82,044 as a lawmaker.

Last year, Flanagan and his campaign paid thousands of dollars in penalties after state campaign-finance regulators found he falsified a “Conservatives for Dennis” mailer sent to voters in his first campaign and made up a person, Jeanne Louise, whose name was used on the mailers.

“Today’s charges against Massachusetts State Representative Christopher Flanagan reveal an appalling breach of public trust,” U.S. Attorney Leah Foley said in a statement Friday. “According to the indictment, Mr. 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. He allegedly stole money and then went to extraordinary lengths to cover it up, going so far as fabricating fake personas to mislead those who questioned his conduct.”

The last time a sitting state representative faced federal charges related to campaign finance was in February 2020.

Lowell Democrat Dave Nangle did not resign his House seat after his arrest, but stepped down from a leadership post and ultimately lost his reelection bid in a primary later that year. Nangle later pleaded guilty to misusing campaign funds and has said the improper spending was related to a gambling addiction.

Tim Whelan, a Republican former lawmaker who was Flanagan’s predecessor on Beacon Hill, said that if Flanagan does not immediately resign, House leaders should launch an ethics investigation and look into removing him from office.

It’s extremely rare for a state representative to be expelled — when it last happened in 2014, it was the first such removal in almost a century.

“I see no reason for the House to hold off on taking immediate action here, and I ask them to do it because it’s a disservice to the 44,000-some odd people who are voters who live in the First Barnstable district,” Whelan told GBH News. “They deserve adequate, fair, solid, strong and honest representation — which they are most certainly not receiving right now.”

Updated: April 11, 2025
This story was updated following Rep. Chris Flanagan’s first court hearing on Friday.