BlueHub CEO benefited from 2014 Massachusetts Attorney General lawsuit against Fannie Mae and Freddie Mac

Elyse Cherry, the CEO of BlueHub Capital, the Massachusetts based non-profit that was recently offered controversal legal protection by a new law signed by Governor Maura Healey, had previously come under fire for a conflict of interest in a lawsuit filed by former Massachusetts Attorney General Martha Coakley that directly benefited BlueHub.

Back in 2014, Coakley sued lenders Fannie Mae and Freddie Mac for failure to comply with a Massachusetts anti-foreclosure law that required federal agencies to work with non-profits to help get foreclosed homes back to homeowners. It was previously reported that Cherry herself actually assisted in writing a draft of the law.

At the time of the lawsuit, only one Massachusetts company would have benefited from the law: BlueHub Capital (then known as Boston Community Capital). At the time, Elyse Cherry was the CEO of BlueHub, earning over a half a million dollars a year. Today, Cherry remains the CEO of BlueHub with an annual salary of close to a million dollars.

An article published on MassLive in October 2014 reported then attorney general and candidate for governor Coakley “failed to disclose her relationship with a friend and donor (Cherry) whose non-profit potentially stands to benefit from legal action taken by the attorney general.”

Cherry made personal contributions to Coakley but also served as the finance co-chair for Coakley’s gubernatorial campaign.

Fall River Reporter uncovered the connection between Elyse Cherry and Maura Healey, detailing a friendship dating back decades. Cherry had donated thousands to Healey’s campaign fund and has hosted several fundraisers for the governor, raising tens of thousands of dollars.

Healey wrote and signed legislation in November that protects BlueHub from being sued. The non-profit is currently facing litigation from homeowners who say they are victims of predatory lending practices by the company, including a homeowner who had to pay BlueHub over $300k in appreciation value after their home was sold to make way for a Boston casino.

Just days after the bill was signed into law, BlueHub attorney’s filed paperwork disclosing the new legislation, which they say is grounds for a dismissal of the case. Current Massachusetts Attorney General Andrea Campbell filed a amicus brief just this week, asserting that precluding BlueHub from this current lawsuit based on new legislation would bring “alarming consequences.”

A call to BlueHub Capital for comment was not returned.