Ex-Chelsea Housing Director Received $200K Before Resignation

CHELSEA (CBS) – More details have been revealed in the unfolding scandal at the Chelsea Housing Authority.

Housing Authority head Michael McLaughlin resigned last week under pressure from Gov. Deval Patrick.

The resignation followed a Boston Globe report that McLaughlin was making one of the highest salaries of any housing authority director in the nation, and that he was under-reporting his income to the state.

On his way out the door, McLaughlin received $200,000 in checks that were cut by James McNichols, a former bouncer and a long time friend of McLaughlin’s hired to handle the authority’s finances back on 2000.

State officials are demanding the money back.

An investigation is ongoing into McLauglin’s under-reported compensation, the severance checks, and four bags of shredded documents found at the authority’s offices.


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