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.
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“Where was HUD?” asked one Chelsea Housing Authority employee who asked not to be named out of fear of retaliation. “They should have been looking. There was a complete collapse of controls and oversight.”
What about the other zillion housing authorities, community action agencies, and community health centers, and so on. This is not an isolated incident about Federal and State oversight. Those that advocate social programs are also at fault and are also responsible for oversight since they advocated these programs. What a waste of taxpayer funds.
If accountants have licensing, Scafidi should lose his.
What Did Tim Murray know and when did he know it? What did Patrick know and when did he know it?
Congratulations to the Globe for continuing to publish these outrageous public sector scams. The opportunity to rip off taxpayers here had to be phenomenally attractive. HUD and state "oversight" was a complete joke. This was grand theft on multiple levels with any number of people either compliant in the process of this crime or complacent about acting in any regard to the needs of either the tennants or taxpayers. How many other cases of blatent public sector corruption are there? Here you have millions of dollars floating around with nary a whit of concern by any number of "managers" about how and where they are deployed. And yet what do we constantly hear from politicians? "We need MORE tax revenue!". All more tax revenue will mean is more opportunity to scam the system as it is abundantly clear the administrative process used on the state and federal level involve no incentives to actually perform much less to report nor investigate corruption. This is why "privatization" of as many services as possible is critical. A private contractor has both incentives to perform AND can be held accountable for corruption. While its possible McLaughlin and a few others MIGHT get prosecuted (because this example is SO egregious) who really believes there will be much of an effort by "authorities" to fully expose all the crimes and criminals here? The "club" that makes up the public sector work force has no incentive to reveal the extent of corruption simply because that will just raise doubts about government competence in general. No, this will be "handled" very quietly so as to not rock the comfortable, corrupt, craft that the public sector has become for its "workers".
No oversight whatsoever ? How is this guys payroll not public record by the way ... I would think that the IRS and Mass Dept of Revenue would also like to take a look into this guy. And, he was allowed to litterally drive off into the sunset ? Why is there not an arrest warrant .. do they actually think there is not enough evidence to hold him? ... If the average Joe stole $500 he would be behind bars waiting trial .. this thief walks off with untold millions ... and he is probably running around trying to hide the dough or making it damn near impossible to recover .. I know its wishful thinking , but I hope they make an example of this low life. For once , can we have someone step up and actually prosecute these criminals like they mean it ...
"Where was HUD? asked one Chelsea Housing Authority employee who asked not to be named out of fear of retaliation. They should have been looking. There was a complete collapse of controls and oversight."
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This person is assuming that there was effective controls and oversight that "collapsed". I suspect that the problem is worse than that in that the "controls and oversight" are ineffective EVEN IF EXECUTED TO THE LETTER OF THE ESTABLISHED PROCEDURES.
Per the article, "But HUD, which runs a $7 billion housing program nationally, relies on auditors who are paid by local authorities to tell HUD if federal funds are being misspent."
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That is an obvious huge flaw in HUD's procedures, akin to hiring your soon-to-be-ex's lawyer to represent your interests in divorce court.
Per the article, "In Chelsea, auditor Martin Scafidi raised no alarms. Annual independent audits produced since 2003 by Scafidi, a certified public accountant, contained little that was critical of the Chelsea agency. In an interview last year, Scafidi said he was among those “betrayed” by McLaughlin."
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I wonder what Mr. Scafidi thinks the purpose of an audit is and what the job of a CPA is? Clearly, Mr. Scafidi should lose his certification as a CPA, and, clearly, he should be prosecuted criminally for enabling what he had to of known was fraud.
Clearly, Mr. McLaughlin is criminally prosecutable for fraud and theft of public monies.
Per the article, McLaughlin also used the federal capital fund to make substantial payments for trash collection to Chelsea City Hall, though city and authority officials could not produce a contract requiring the payments. Though technically independent, McLaughlin benefitted from good relations with the city since the city manager names four of his five board members who are then confirmed by the City Council."
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Since Mr. McLaughlin is willing to break laws, commit fraud, and be dishonest -- all for money -- it is clear that he is not giving up lots of said money just because he is a nice guy. This is an obvious payoff for persons to look the other way (don't look a gift horse in the mouth).
Interesing that a state that wants to think of itself, and tries to maintain an image, of caring about the less fortunate is, keeps getting caught screwing them instead.
What has happened to the MA. state departments under Gov. Deval Patrick's governorship?
How can there be certified Auditors who failed to identify the issues in a government agency? Chelsea Housing, the State Lab, the Probation Dept___how many other departments do we not know about?
Very bad management - Very bad oversight: It appears Deval Patrick didn't know when he ran for the job of Governor that he was responsible for more than choosing his office curtains.