State Sen. Douglas McCrory, a Hartford Democrat who represents parts of New Haven, announced Wednesday that he is stepping away from the board of the Community Investment Fund, citing a recent forensic audit he described as biased and inaccurate, as an FBI investigation into his connections to state-funded nonprofits continues.
In a letter to Senate President Pro Tempore Martin Looney, McCrory wrote that the audit "contains several inaccuracies, makes unfounded claims, and demonstrates clear bias against me." He added that "the overall veracity should be questioned" and said he "engaged in no wrongdoing."
The audit at the center of the dispute examined the Blue Hills Civic Association of Hartford, a nonprofit that received more than $15 million in state funding over several years before abruptly ceasing operations in spring 2025. The organization collapsed after approximately $300,000 in state money was apparently transferred to scammers in a fraudulent bank transaction. The forensic audit, released in January 2026 by Gov. Ned Lamont and the state Department of Economic and Community Development, found "pervasive governance failures, systemic internal control weaknesses, and patterns of conduct that strongly suggest potential fraud and misappropriation of public funds."
Some of that money was reportedly funneled to a nonprofit called SHEBA, which is run by Sonserae Cicero-Hamlin, identified in federal court filings as a friend and associate of McCrory.
FBI Investigation
The federal investigation into McCrory's role in directing state grants to Greater Hartford nonprofits has been underway for months. A federal grand jury last year issued subpoenas seeking emails and financial records from the state Department of Economic and Community Development and the Minority Business Initiative Advisory Council, on which McCrory serves. Subpoenas also sought records of any "personal or non-professional relationship" between McCrory and Cicero-Hamlin, according to reporting by CT Mirror.
McCrory has not been charged with any crime and maintains he acted properly.
CREC Grant and Lamont's Veto
The timing of McCrory's departure from the Community Investment Fund board coincides with a separate dispute over a $750,000 grant earmarked for CREC — the Capitol Region Education Council — intended for a teacher training program. McCrory is employed by CREC as its director of family and community engagement, a connection that drew additional scrutiny to the grant.
On March 3, Gov. Lamont announced he would veto that grant along with approximately $4 million in earmarks for five other organizations, citing a lack of transparency and accountability in how the grants were approved. "The public deserves to know" how state money is spent, Lamont said in a statement.
"My objection is to the process," Lamont added, explaining that the grants were fast-tracked through an emergency bill without the customary scrutiny applied to standard appropriations.
McCrory has not publicly addressed the connection between his CREC employment and the vetoed grant.