61% bump | Boston Water CHRO paid & promoted despite fraud allegations & multiple lawsuits

Boston Water CHRO paid & promoted despite fraud allegations & multiple lawsuits

The Boston Water and Sewer Commission (BWSC) spent nearly $30,000 on external investigations into its HR Director amid multiple civil lawsuits and internal concerns - but continued to increase her salary and promote her to a top leadership role.

Public records show that Marie Theodat, promoted to Chief Human Resource Officer (CHRO) in September 2024, is currently on paid administrative leave with a $202,873 annual salary, despite being the subject of three internal and external investigations, including one by law firm Nixon Peabody and another by Serino Law. A third probe was conducted internally by Commission staff. No reason was provided for her leave.

The investigations began in mid-2023 and coincided with the filing of lawsuits in Suffolk Superior Court that accuse Theodat of participating in a scheme to defraud her elderly uncle—who reportedly has dementia - out of his $1.1million Dorchester home. Separate cases also allege mortgage fraud involving a $75,000 loan.

Raises and promotion during ongoing HR director investigation

Despite these active cases and ongoing scrutiny, records show that Theodat’s salary increased by 61% between 2019 and 2024. The Commission promoted her from HR Director to CHRO last year, during the same period that at least two law firms were engaged to investigate alleged misconduct.

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Invoices show that ADR Research conducted a fact-finding inquiry in July 2023, billed to former general counsel Michael Flaherty. Flaherty was later dismissed in January 2025 following a “breakdown in the working relationship” with BWSC Executive Director Henry Vitale. Serino Law was retained from late October to December 2024 to conduct another review, for which the firm was paid nearly $25,000.

The Commission also confirmed that Nixon Peabody, now handling most legal matters for the agency, was awarded successive legal services contracts worth a combined $850,000 between October 2024 and January 2025.

HR director fraud concerns prompt union intervention

Following public reports of the lawsuits, three unions called for Theodat’s immediate suspension and raised concerns about her access to sensitive employee information, including social security and bank data.

Despite this, records indicate the Commission withheld three internal investigation reports after a request from the Boston Herald. While the Secretary of State’s office ordered disclosure, BWSC cited privacy concerns and potential reputational harm in its refusal to release unredacted documents.

Theodat, who did not respond to media inquiries, was listed as one of the Commission’s six highest-paid employees last year. Her status and continued compensation while on leave remain unclear, with the agency declining to provide further comment.

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