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The Boston Globe

Metro

Auditors noted, then ignored, McLaughlin pay

AG investigating repeated failure to act on an outrage that was right in plain view

State auditors knew by 2005 that former Chelsea Housing Authority chief Michael E. McLaughlin was concealing his true salary from state officials and urged him to seek official approval for more than $40,000 in hidden income, according to interviews and records.

McLaughlin resisted, joking to auditors that “all my neighbors are rich and I have to keep up with them,’’ according to a person who heard the remark. But after McLaughlin said he would think about reporting his full income, records show the team from former auditor A. Joseph DeNucci’s office dropped the issue.

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