Massachusetts State Representative Chris Flanagan was arrested Friday on federal embezzlement charges, making him the second Democratic official in the state to face legal trouble this week. Federal authorities allege that Flanagan misappropriated around $36,000 from a former employer to pay for campaign expenses, personal clothing, and credit card debt.

U.S. Attorney Leah Foley, who is handling the case, stated that Flanagan’s theft occurred during his time as executive officer of the Home Builders and Remodelers Association on Cape Cod. He reportedly admitted to the theft when confronted and promised to repay the funds. Following the discovery, he resigned from the position, and the case was escalated to federal prosecutors.

The indictment claims that Flanagan diverted $10,000 of the stolen funds to support his 2023 reelection campaign. Previously, he was fined $15,000 for unethical campaign practices, including the creation of a fake conservative group and using a false identity to bypass donation limits.

Flanagan allegedly used the embezzled money not only for campaign t-shirts and supplies but also for personal purchases. These included an electric dryer, an air conditioner, dress shirts, ties, children’s toys, and even “psychic services,” according to the Boston Globe and the U.S. Attorney’s office.

To conceal the theft, Flanagan submitted forged expense reports, claiming reimbursements from the trade group were legitimate. He later deposited $10,000 into his personal account, falsely labeling it a “candidate loan,” despite having just $42 in the bank weeks earlier.

At the time, Flanagan was earning over $97,000 annually as a state representative, along with $81,600 from his association role. Yet, investigators say financial records showed a history of debt, missed mortgage payments, and frequent overdraft fees starting in late 2021.

Flanagan’s arrest follows another high-profile case earlier in the week involving Boston City Councilor Tania Fernandes Anderson. She resigned after pleading guilty to accepting a bribe to settle personal debt.

In response to Flanagan’s arrest, Democratic Governor Maura Healey and other state officials have called for his resignation. House Minority Leader Brad Jones urged the legislature to begin ethics proceedings if Flanagan refuses to step down.