For years, the investigation into former Chelsea Housing Authority (CHA) Director Michael McLaughlin dragged on. Finally, last Thursday brought charges from U.S. Attorney Carmen Ortiz — and observers have spotted indicators suggesting a plea agreement may be in the works.
Should McLaughlin pursue such an agreement, speculation abounds regarding what concessions he might have made to secure leniency in a matter so serious that federal lawmakers have already amended legislation to prevent similar misconduct.
An Information charging document was filed last week by federal authorities. It alleges that McLaughlin, 67, of Dracut, submitted false salary information over three consecutive years in budgets submitted to both the federal Housing and Urban Development (HUD) agency and the state Department of Housing and Community Development (DHCD). During one fiscal year alone, his total compensation was allegedly understated by $160,000.
What distinguishes this case is that McLaughlin was charged via Information rather than indictment — a choice that surprised many given the apparent severity of the allegations. An Information serves as an alternative to indictment and typically appears in government corruption cases where plea negotiations are anticipated or already underway.
When reached by the Record, McLaughlin’s Boston-based attorney Thomas Hoopes declined to discuss the matter, consistent with his approach to other media inquiries.
Speculation surrounds what McLaughlin might have disclosed in exchange for a favorable plea arrangement. The case itself appears straightforward from the Information filing — investigators simply cross-referenced annual budget reports against McLaughlin’s W-2 tax filings, revealing obvious gaps. The situation grew more complicated when McLaughlin himself acknowledged the conduct to the Boston Globe following the 2011 story’s publication.
Has McLaughlin revealed connections to Lt. Gov. Tim Murray and his broader political network?
Has he disclosed information about potentially corrupt federal or state housing officials who may have overlooked these activities for years?
These remain open questions with answers that may never surface publicly.
Each count carries potential penalties of up to 20 years imprisonment, three years probation, and a $250,000 fine.
According to the Information, McLaughlin reported a budgeted annual salary of $151,945 for FY 2008, though his actual salary under his contract was at least $242,908. Similar concealment allegedly occurred over the following three years. For FY 2009, he reported $156,503 while actually earning at least $267,199, with total compensation of at least $292,902 per his 2008 W-2. In FY 2010, the reported figure was $160,415 against actual compensation of at least $275,215, with total compensation of at least $324,896 per his 2009 W-2. For FY 2011, he reported $160,415 while actually receiving at least $283,471, with total compensation of at least $324,896 per his 2009 W-2.
Officials emphasized these are federal charges only; state Attorney General Martha Coakley retains the option to file separate state-level charges.
City Manager Jay Ash expressed dismay, noting that multiple audits had led him to believe McLaughlin was performing well. “fblikebutton_button”I continue to be very disturbed with all the information that’s coming out about what McLaughlin did during his tenure at the housing authority,”fblikebutton_button” Ash stated. “fblikebutton_button”I believed him to be a qualified manager and there were very positive audits to back that up, both publicly done and privately. I’m alarmed at the money diverted from local residents. I’m hopeful the investigating authorities will get to the bottom of everything.”fblikebutton_button”
Campaign violations letter surfaces
Within a day of McLaughlin’s federal charges, state officials released a letter from the Office of Campaign and Political Finance (OCPF) documenting campaign finance violations involving McLaughlin, other former CHA officials, and Lt. Gov. Tim Murray.
The OCPF issued this September 2012 letter, which was then sent to Attorney General Martha Coakley for investigation. The Boston Herald first reported it, though the Record subsequently obtained its own copy.
“fblikebutton_button”We have concluded there is evidence of violations during 2008-2011 of the Massachusetts Campaign Finance law, warranting referral of the matter to the Office of Attorney General,”fblikebutton_button” the letter stated. “fblikebutton_button”Specifically, the evidence indicates that Michael McLaughlin and James McNichols, former employees of the Chelsea Housing Authority, did not comply with (sections of the law) prohibiting political fundraising by public employees and prohibiting political fundraising in public buildings.”fblikebutton_button”
“fblikebutton_button”The evidence also indicates that McLaughlin, Lt. Gov. Tim Murray and the Citizens Committee to Elect Tim Murray did not comply with (parts of the law) which prohibit the solicitation or receipt of contributions not raised in according with the Campaign Finance Law,”fblikebutton_button” the letter continued.
The letter also noted that those charged with violations requested hearings, with the exception of McLaughlin.
The letter and charges arrived just days after Murray announced his decision not to seek the governorship in 2014, citing family considerations for his withdrawal.