A forensic audit into the Blue Hills Civic Association (BHCA), launched following the loss of $300,000 in wire fraud and the alleged funneling of millions of dollars to the personal friend of Sen. Doug McCrory, D-Hartford, has been delayed for months due to a federal subpoena and closure of the organization, according to a letter from Department of Economic and Community Development (DECD) Commissioner Daniel O’Keefe.
The forensic audit being conducted by CliftonLarsonAllen was initially set to look at BHCA records between July 1, 2022, and March 31, 2025, at a cost of $201,751, according to O’Keefe’s letter to Senators Stephen Harding, R-Brookfield, Henri Martin, R-Bristol, Rob Sampson, R-Wolcott, and Ryan Fazio, R-Greenwich.
According to an August 2025 letter from O’Keefe and the DECD, $2.6 million in undispensed state and federal dollars are being held in escrow pending the results of the forensic audit.
The audit was initially supposed to be released in September 2025 and was pushed back twice. It has yet to be released, although O’Keefe says it will be released sometime this month. O’Keefe wrote that DECD officials extended the timeframe of the audit to match the dates in a federal subpoena seeking documents related to several nonprofits, focusing on McCrory and his alleged relationship with Sonserae Cicero, the head of the Society for Human Engagement and Business Alignment (SHEBA), which received millions of taxpayer dollars during that time period, both directly from DECD or funneled to them though nonprofit intermediaries like BHCA.
However, the forensic audits also hit delays because BHCA was forced to shut down due to a lack of funds. The organization was the victim of wire transfer fraud in 2025, losing $300,000, and its funding was cut off by the state as the allegations against McCrory and Cicero came to light over the summer.
“As the inquiry progressed, it was clear that the firm needed additional time to complete the review, as there were delays in their ability to obtain the required documentation from BHCA, as most BHCA employees have departed the organization,” O’Keefe wrote. “The department now anticipates that the results of the forensic audit will be issued within the month.”
McCrory was deeply involved with BHCA and used his influence as a state senator and board member of the Minority Business Council to push funding and partnership opportunities toward Cicero and SHEBA, which purportedly offered small business training as a condition for businesses low interest loans and grants through the state and its nonprofit partners. SHEBA received roughly $3.4 million between 2021 and 2025, according to documented payments.
The Department of Justice, at this point, has only requested documents and has not made any formal allegations. Nevertheless, the paper trail of McCrory and Cicero has sparked calls for reforming how the state dishes out funds to nonprofit organizations and what kind of monitoring is in place.
Republicans in October held a press conference highlighting a number of nonprofits who receive money through the state budget with no real oversight and claimed some of these organizations only appeared to exist on social media, and one of them was run by Democrat lawmaker’s sister.
O’Keefe said the DECD is responding, in part, by consolidating several offices within the department into one, the Office of Community Development, to enable more flexibility, standardize operations, ensure expertise, and get contracts with state partners executed more quickly.
“We have been working hard to find ways to be more efficient while improving the level of service that Connecticut businesses, municipalities and residents expect and deserve,” O’Keefe wrote. “With that in mind, DECD has merged the Offices of Brownfield Remediation and Development, the Office of Community Development, and the Community Investment Fund 2030 under one roof: the Office of Community Development.”
McCrory has denied any wrongdoing and Cicero has not responded to press inquiries. SHEBA received money directed through not only BHCA, but also through the Hartford Area Development Corporation, a $5 million state grant to Girls for Technology, and the Spanish American Merchants Association.
O’Keefe wrote that the merger of several offices into one “will not have an immediate impact,” on the state’s nonprofit partners.
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Can not wait for this to come out. Between this, the non profit in Waterbury bouncing a check to Eversource and the PURA non profit scandal there is some serious oversight required.