BUFFALO, NY — Joseph Hernandez, Republican candidate for New York State Comptroller, today criticized State Comptroller Tom DiNapoli for failing to detect a growing financial scandal involving the Seneca-Babcock Community Association (SBCA), a Buffalo-based nonprofit that operates community centers and provides services to seniors and at-risk youth, raising serious questions about the state’s oversight of taxpayer dollars.
The controversy, first flagged by Erie County Legislator Frank Todaro in a formal request to Attorney General Letitia James, centers on years of missing financial filings, lapses in compliance with state and federal nonprofit laws, and the organization’s loss of its tax-exempt status.
According to Todaro’s findings, SBCA failed to comply with basic reporting requirements for extended periods, with no financial filings with the State Attorney General’s office between 2004 and 2020. Federal records show similar gaps, including years where required IRS Form 990 disclosures were not submitted.
Even more troubling, SBCA’s tax-exempt status was automatically revoked in 2017 after failing to file for three consecutive years, raising serious concerns about whether the organization continued to receive taxpayer funds or solicit donations while not in good standing.
An independent audit by Bonadio & Co. further revealed that “detailed accounting records have not been maintained,” making it impossible to verify how funds were spent. SBCA has received multiple city, county, and state grants over the years to support its operations, meaning taxpayer dollars were flowing to an organization that cannot produce basic financial records.
“This is a textbook failure of oversight,” said Hernandez. “The Attorney General is responsible for ensuring nonprofits comply with basic filing requirements, and those filings were missing for years without action. At the same time, when taxpayer dollars are going to an organization that has received public funding for years but cannot produce basic financial records, that is exactly the kind of risk the Comptroller should be identifying and flagging.”
SBCA, which operates multiple community centers and provides services to seniors and at-risk youth in Buffalo, has since seen its CEO resign amid the controversy, according to local reports.
Hernandez said the situation highlights broader concerns about oversight and accountability in New York.
“Fraud and mismanagement don’t happen overnight,” Hernandez continued. “When warning signs are missed for years, it raises serious questions about whether the systems in place to protect taxpayers are actually working.”
“As Comptroller, I will bring real accountability back to this office,” Hernandez added. “We will proactively audit programs, flag risks early, and ensure that no organization can operate in the shadows while receiving public funds.”