A mayor's lawsuit shut down a newspaper over fake stories

EVERETT, Mass. — For years, the mayor of a Boston suburb dreaded Wednesdays. That was the day when a local weekly would publish shocking allegations that he was on the take, sexually harassing women or under investigation by the FBI. Friends trashed Everett Mayor Carlo DeMaria on Facebook over what the Everett Leader Herald printed. His father threatened to disown him — over stories the mayor knew were lies. "They labeled me as a 'Kickback Carlo.' Accusations that I was settling all kinds of sexual harassment lawsuits, that I put a knife to a girl's throat and asked for sexual favors," DeMaria said. "It was awful. It was disgusting." An unusual libel law win Almost everything the paper wrote about DeMaria turned out to be fake, enabling him to win a $1.1 million settlement in December that finally shut down the nearly 140-year-old paper. Such defamation victories are exceedingly rare under the Supreme Court's "actual malice" standard for public figures. That willing disregard for the truth became abundantly evident when the paper's editor swore in court to tell the truth, and admitted to fabricating story after story in an unrelenting smear campaign. But DeMaria hardly had time to celebrate. Now preparing for his seventh mayoral campaign, he's been accused of padding his salary with bonus payments — an issue the paper covered four years ago — and this time, the state of Massachusetts is pressing the City Council to take action. A mayor and city on the way up Favoring sharp suits and slicked-back hair, DeMaria was schooled in a style of politics based on personal connections with fellow residents in the working-class town of about 49,000 across the Mystic River from Boston. As mayor in 2007, he's been praised for his leadership in improving infrastructure. Out-of-towners can now look beyond the Monsanto and Exxon Mobil facilities as they come to a glitzy casino and soon, possibly, a professional soccer stadium. Everett voters reelected DeMaria by landslides, and his annual compensation grew to $232,700, including a car allowance and a "longevity bonus," approaching the $250,000 salary of Mayor Michelle Wu of Boston, a city nearly 14 times larger. Then, after a brutal 2021 campaign, he held onto office by just over 200 votes. Matthew Philbin had bought the Leader Herald in 2017 and hired a Boston-area reporter Joshua Resnek, to turn it into an attack machine, court records show. DeMaria believes Philbin was angry at him after he opposed his boarding house licenses as a councilman and then rejected giving him a city insurance contract after he became mayor. It was 'Blue Suit' v. 'Kickback Carlo' Resnek invented a City Hall insider he called the "Blue Suit" and in article after article, made up conversations accusing "Kickback Carlo" of extorting the city clerk in a land deal, shaking down people for contributions and sexually assaulting women. In an emotional press conference to announce his court victory, DeMaria stood with his wife and expressed vindication. "The size and scope of this settlement — both in terms of the amount that the defendants have agreed to pay and in their agreement to shut down their newspaper — is a reflection of just how egregious their conduct was, and of the volume of their admissions of their misconduct," DeMaria said. Neither Philbin, Resnek nor their lawyers responded to repeated requests for comment, but the paper's final edition reported that "the settlement leaves all parties satisfied that an agreeable arrangement was reached, making the necessity of a trial a moot point." Some residents grumbled about the loss of local news coverage. "We need all kinds of voices," said Everett homeowner Peggy Serino, a regular at council meetings. "Just because the administration didn't agree with something doesn't mean you shut it down." DeMaria's joy proved short-lived Someone complained to the state Office of the Inspector General about the bonus payments in 2022, after the Leader Herald suggested they were illegal and quoted a mayoral challenger who called them "greedy." DeMaria turned down his 2022 payment of $40,000, and the council limited his future payments to what other city workers get — about $1,700 a year. After a lengthy investigation, the Inspector General concluded in February that DeMaria colluded with his finance officer and budget director to retroactively get $180,000 from 2016 to 2021, hiding the payments within other line-items. The IG also concluded that DeMaria may have violated state ethics law by participating in the drafting and approval of the ordinance that padded his pay. The City Council has turned on him since the report came out. It can't fire him, but councilors demanded repayment and launched an audit into nearly a decade's worth of payments to him. They also requested details they could bring to the state ethics commission, which can fine an official up to $10,000 per violation and refer evidence of any crimes to prosecutors. DeMaria insists he never "engaged in concealment" and that law enforcement has not contacted him. It's all just small-town politics, he said. "Those who have falsely accused me over the years are the ones who are guilty of the real wrongdoing," he said. "I will continue to fight to protect my family, but also to undo the harm that has been done to the reputation of Everett and its residents by these unnecessary and unfounded attacks." 'Think about your grandmother' DeMaria didn't attend a special meeting packed with city employees where his lawyer and his daughter came to defend him. Launching his reelection campaign weeks later, he asked supporters to withhold judgment until all the facts come out. Not everyone is willing to wait. The City Council approved a no-confidence vote and ended future longevity payments for him. "This is a sad day for our community," City Councilor Peter Pietrantonio said. "These are serious facts against the mayor and his administration ... To me, it's appalling." Councilor at Large Guerline Alcy Jabouin asked the many city workers supporting DeMaria to look beyond their allegiances. "Think about your property taxes. Think about the school that isn't getting enough money. Think about your grandmother, your grandfather that cannot afford to pay for their medication," Jabouin said.