Political connections, missing filings, and a stunning audit disclaimer are now sparking calls for an investigation into a taxpayer-funded agency in New York State.
Minnesota Governor Tim Walz was hauled before Congress to answer tough questions about fraud, waste and abuse tied to the massive “Feeding Our Future” scandal that rocked his state.
Now, the South Shore Press is blowing the lid off a troubling situation in Buffalo, New York, that critics say raises similar questions about oversight, taxpayer money, and political protection in Kathy Hochul's hometown.
It all also happened on New York State Attorney General Letitia James' watch, and could make New York the Congressional focus of the newest version of the "Somali Learing Center" scandal.
At the center of the controversy is the Seneca Babcock Community Association (SBCA), a taxpayer-funded nonprofit that operates multiple youth and senior centers in Buffalo.
It is exactly a 20 minute ride and 12 miles from its location at 1182 Seneca Street in Buffalo to Hamburg Town Hall, where Governor Kathy Hochul once served as a Hamburg Town Board member.
Public records from the New York State Attorney General's office and the IRS, reviewed by the South Shore Press, appears to show that the organization failed for years to file required financial reports with the New York State Attorney General’s Charities Bureau, despite laws requiring annual disclosures. Searches also show the agency failed to file 990 federal tax forms for many years.
The nonprofit’s Executive Director, Brian Pilarski, is also a Democrat member of the Cheektowaga Town Board, raising questions about whether political connections helped shield the organization from many years of scrutiny.
Cheektowaga is no small town or tiny player in Erie County Democrat politics. It is the third biggest town in Erie County with a population of almost 90,000 people. It is a "bellwether town" that more often than not, mimics statewide election results.
Now a local lawmaker in Erie County is demanding answers.
“Extremely Concerning” Red Flags
Erie County Legislator Frank Todaro has formally asked Attorney General Letitia James and State Comptroller Thomas DiNapoli to investigate the organization’s finances and compliance with nonprofit laws.
In letters sent Monday, Todaro warned that the situation could involve “fraud, waste, abuse, theft and mismanagement of taxpayer dollars.”
His concern centers on a stunning gap in required financial reporting.
According to the Attorney General’s own charitable database:
- The nonprofit only filed two annual financial reports with the New York State Attorney General as required by law, going back to 2004
- Then stopped filing this required documentation for more than a decade
- The next filing didn’t occur until 2020, but for the 2017 tax year
Organizations with over $1 million in annual revenue are required to submit audited financial statements every year to the state.
Seneca Babcock did not.
The Audit That Shocked Accountants
When the nonprofit finally filed again in 2020, the attached audit report raised even more alarm bells.
The accounting firm Bonadio & Co. LLP issued what is known as a “disclaimer of opinion.”
In plain English: the auditors said they could not verify the organization’s finances because key financial records didn’t exist.
In the report, auditors stated:
“Detailed accounting records have not been maintained and supporting data was not available.”
Because of the missing records, the firm said it could not obtain enough evidence to verify the nonprofit’s finances.
Accounting professionals say that kind of audit disclaimer is almost unheard of.
One CPA who reviewed the report told the South Shore Press on background, but not to be quoted by name since their firm does not allow partners to speak publicly to media:
“This is the kind of thing you learn about on the CPA exam. In the real world you almost never see it because it means there were basically no records to audit.”
IRS Problems Too
The nonprofit also appears to have had trouble complying with federal tax rules.
IRS records show Seneca Babcock fell behind on Form 990 nonprofit filings, which are required annually.
Failure to file for three consecutive years automatically revokes a nonprofit’s tax-exempt status.
Records suggest the organization’s status was revoked around 2017 before being reinstated later that year after filings were submitted.
Even after that, filings continued to arrive years late.
A CPA who reviewed the records said the pattern suggests the nonprofit may have been filing just often enough to avoid losing its nonprofit status again.
Millions in Taxpayer Funding
The Seneca Babcock Community Association is not a small charity.
The organization operates several community centers serving thousands of residents, including:
- Seneca Babcock Community Center
- Hennepin Community Center
- George K. Arthur Community Center
- Schiller Park Community Services
- Senior Meals
- Daycare
- Youth Recreation
- Workforce Development
- Social Services
That’s why lawmakers say the financial reporting gaps are so troubling.
“If an organization receiving taxpayer money cannot produce financial records, that raises serious questions,” Todaro wrote.
Where Were the Watchdogs?
Perhaps the biggest question now is how this went unnoticed for so long.
The New York Attorney General’s office is responsible for regulating charities and ensuring compliance with filing requirements.
But records show the organization apparently went more than a decade without filing required reports.
Critics say that should have triggered enforcement action long before now.
With the nonprofit led by an elected Democratic official, some are now questioning whether political connections may have played a role in the lack of scrutiny.
No evidence has emerged suggesting intentional wrongdoing by state officials.
But the optics are already raising eyebrows.
Social Media Sparked the Fire
The issue reportedly came to light after a TikTok video circulated online highlighting the missing filings and financial concerns.
According to Todaro, the video caught the attention of constituents who began digging into public records and contacting elected officials.
The findings eventually landed on lawmakers’ desks: triggering this call for a state investigation.
Could Albany Face the Same Questions Minnesota Did?
The situation is already drawing comparisons to the massive Feeding Our Future fraud scandal in Minnesota, where hundreds of millions of taxpayer dollars were allegedly misused through nonprofit programs.
That scandal forced Governor Tim Walz to answer questions about how regulators failed to catch the problem earlier.
Now critics say New York could face similar questions if problems are uncovered at Seneca Babcock.
If investigators find wrongdoing, pressure could mount on Albany leaders, including Governor Kathy Hochul and Attorney General Letitia James, to explain why warning signs went unchecked for years, especially in Kathy Hochul's hometown.
For now, lawmakers say one thing is clear:
The books need to be opened. And the public deserves answers.