Globe reports on McLaughlin Multi Million dollar Slush Fund
By Shawn on Oct 2, 2012 in Community
The Boston Globe today reports on millions of dollars in federal funds that were used by McLaughlin for himself, depriving housing tenants.
Former Chelsea housing chief Michael E. McLaughlin appears to have diverted millions in federal money from construction projects for low-income family and elderly housing, records show, freeing up an enormous slush fund that benefited himself, his family, and his friends, while leaving tenants to make do in dreary apartments that have not been updated in 50 years or more.
A Globe review of almost $9 million in federal funding paid to McLaughlin’s agency since 2002 found that more than $3.5 million of it was slated for projects that were not done, despite written promises to use the money to pay for new kitchen cabinets, baseboard heating, boilers, elevators, waterproofing, and other capital improvements.
Housing and Urban Development is coming into the Chelsea Housing Authority to try to figure out what happened there, where the money went, and who was responsible.
As we remember, the housing authority corruption investigation that has climaxed in Chelsea started here in Dracut with the attempt by people close to McLaughlin to remove our own Executive Director at the Dracut Housing Authority. This was believed to be orchestrated by McLaughlin. Questions and investigations soon brought to light issues throughout the system of people being overpaid, having multiple jobs, use of employees and tenants to support political campaigns, and now massive misuse of funds. Everyone close to McLaughlin has became a target of investigation and scrutiny.
And now it continues in Chelsea.



Rich Cowan | Oct 2, 2012 | Reply
Here a few more stories following the McLaughlin misuse of funds (pardon me if you already linked to these):
Release of the Urlaub report
http://www.chelsearecord.com/2012/03/16/audit-report-detailed-virtually-no-controls/
Hurley O’Neill & Company audit
http://articles.boston.com/2012-09-06/metro/33612730_1_scathing-new-audit-annual-audits-questionable-costs/2
Copy of audit draft, September 2009
http://cache.boston.com/multimedia/2012/09/chelsea/chelsea.pdf
Final report of the Receiver to the SJC
http://www.chelsearecord.com/2012/04/20/the-receivers-final-report/
Audit that failed to uncover abuses
http://www.chelsearecord.com/2011/11/17/audit-unveiled-this-year-claimed-all-was-well/
Grand Jury investigation – joint Coakley and Carmen Ortiz of the Feds
http://www.chelsearecord.com/2012/06/07/grand-jury-stepping-up-mclaughlin-matter/
Chelsea Retirement Board Chair failed to act
http://www.chelsearecord.com/2012/02/16/the-auditors-knew/
Brown, Grassley question HUD Oversight
http://www.chelsearecord.com/2012/02/09/sen-brown-and-sen-grassley-leading-federal-inquiry-of-cha/
Evidence of improper accounting that boosted Section 8 reimbursments in Chelsea, from Federal Audit dated way back in 2004
http://archives.hud.gov/offices/oig/reports/internal/ig410006.pdf
It certainly looks like indictments should be made in this case.