Housing Authority Director Charged With Stealing Public Funds for His Own Bathroom Makeover

A Public Trust, Privately Exploited

The former director of the Watertown Housing Authority has agreed to return funds he stole and used to renovate his bathroom — a total of $6,200 — after being charged with one count of wire fraud. The case is a stark reminder of what can happen when someone entrusted with public resources decides those resources are better spent on personal comfort.

Under the terms of a Deferred Prosecution Agreement, Michael Lara, 41, of Norwood, agreed to repay the stolen funds, resign from his current position as Executive Director of the Newton Housing Authority, and not commit a new violation of federal criminal law for six months. If he meets those commitments, the U.S. Attorney's Office may determine to withdraw the information about the charge filed in court, which would avoid prosecution for the stated charge.

How the Scheme Unfolded

Lara served as Executive Director of the Watertown Housing Authority and president of both the Watertown Housing Development Corporation and WHDC Holdings, LLC from July 2019 to January 2025. In that role, he had access to the WHA's charge account with Home Depot as well as the WHDC's credit cards. Although the housing authority's policy permits use of its credit cards for official business, Lara used funds from the authority and development corporation for personal expenses beginning in 2022.

In 2023, Lara began a renovation of his master bathroom, spending more than $3,000 at Moniques Bath Showroom and nearly $3,000 at Home Depot on four occasions for fixtures. Prosecutors say the purchases included vanity lights, a bathroom vanity, faucet fixtures, and a shower stall with fixtures — all charged to housing authority accounts.

Caught in the Act — Almost

State authorities began investigating Lara's alleged improper use of WHA funds in 2024 and sent the housing authority multiple requests for information. When the scrutiny began, Lara didn't stay idle. After learning of the state investigation, Lara removed the fixtures that he had purchased using the WHA charge account and WHDC's credit card. It was a move that might have seemed clever — but federal investigators weren't finished.

During a federal search warrant executed at Lara's residence in June 2026, it was revealed that he had installed a new bathroom vanity, mirrors, shower fixtures, and sink fixtures — but had kept the vanity lights. FBI investigators also saw a ladder and sander he had purchased with WHA funds. The partial removal of items, rather than clearing his name, only underscored that he knew exactly what he had done.

What Happens Next

The deferred prosecution agreement was filed by the U.S. Attorney's Office for the District of Massachusetts on August 27. U.S. Attorney Leah B. Foley and FBI Special Agent in Charge Ted E. Docks made the announcement, with valuable assistance provided by the Massachusetts Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Lucy Sun of the Public Corruption and Special Prosecutions Unit.

The dollar amount here — just over $6,200 — is relatively modest in the landscape of public corruption cases. But the principle at stake is anything but small. Housing authorities exist to serve some of the most vulnerable residents in a community. When the people running those agencies treat public funds as a personal expense account, it erodes the trust that makes those institutions function. Lara's case, and the federal attention it drew, sends a clear signal: no theft from the public is too small to prosecute.