New York Attorney General Letitia James is facing accusations of failing to pursue investigations into three controversial New York City homeless shelter operators while receiving more than $56,000 in political contributions from individuals connected to the organizations, including executives, lobbyists and their spouses.
The allegations, raised just days before Tuesday’s election, concern Samaritan Daytop Village, Acacia Network Housing and CORE Services Group, three nonprofits that have received substantial taxpayer funding despite repeated scrutiny over their financial practices, management and operations.
According to campaign finance records, individuals associated with the organizations have contributed to James’ political committees over the past eight years. Critics contend that her office has not taken enforcement action against the three providers since she became attorney general in 2019, even as other government agencies investigated their activities.
The organizations have attracted attention from the state comptroller, state inspector general, New York City’s Department of Investigation and federal authorities over allegations involving questionable financial arrangements, excessive executive compensation, inadequate oversight and potential conflicts of interest.
A sweeping 2024 Department of Investigation review of 51 city-funded shelter providers, including Acacia and CORE, identified instances of “nepotism, lack of competitive bidding and exorbitant salaries” within the city’s multibillion-dollar homeless shelter system.
The report also noted that the attorney general has the authority to “bring action to enjoin, void or rescind” improper transactions involving nonprofit organizations.
Republican attorney general candidate Saritha Komatireddy, a former federal prosecutor challenging James in Tuesday’s election, accused the incumbent of neglecting her responsibilities.
“These are precisely the kinds of abuses the attorney general is supposed to investigate,” Komatireddy said.
“Yet while other watchdog agencies have exposed serious misconduct, Letitia James has refused to hold these operators accountable.
“The fact that individuals tied to these [three] organizations have contributed thousands of dollars to her campaigns raises serious questions about whose interests she is protecting,” Komatireddy added.
Among the financial connections identified is Vito F. Pitta, a Samaritan Daytop Village board member who has personally donated $6,000 to James’ campaigns since 2018. His lobbying company, Pitta LP, contributed another $22,500, according to campaign records.
Samaritan has faced criticism over its handling of public funds. A 2024 examination by State Comptroller Tom DiNapoli determined that the organization had improperly billed New York City $566,556 over the preceding two years. A subsequent audit this year found that the Department of Homeless Services had still not recovered $385,109 of that amount.
Financial disclosures also showed that Samaritan CEO Mitchell Netburn received a 25% pay increase in 2025, bringing his annual compensation to $465,289, even as the nonprofit reported operating losses for a third consecutive year.
City investigators additionally identified arrangements in which Samaritan purchased legal and insurance services from businesses associated with members of its own board.
The organization’s operations have also been linked to serious incidents at facilities under its supervision.
In 2019, Marcus Coles, a house manager at Samaritan’s residential treatment center in Ellenville, New York, was arrested for sexually assaulting a woman receiving care at the facility. He subsequently pleaded guilty to a felony sex offense.
The state later sued Samaritan, alleging that the organization had failed to conduct adequate background checks despite Coles having an extensive criminal record involving burglary and drug-related arrests. The litigation was eventually settled.
In March of this year, however, James’ office asked a state judge to transfer ownership of the same treatment facility to Samaritan after the original corporate owner ceased operations. The transfer would permit the property to qualify for additional state financing.
Another tragedy occurred in 2022 at the Pan American Hotel in Elmhurst, Queens, which Samaritan was operating as a family shelter. Three-year-old Shaquan Butler Jr. was discovered dead with bruises on his body.
Local elected officials criticized conditions at the shelter, including allegations of widespread drug activity. The child’s father, Shaquan Butler, was ultimately convicted of murder and sentenced to 32 years in prison.
Acacia Network Housing has also drawn scrutiny over its financial arrangements and executive compensation. One of its prominent lobbyists, Luis Miranda Jr., is a longtime political strategist for James, while Miranda and his wife, Luz Towns-Miranda, have contributed a combined $25,898 to her campaign committees since 2018.
In 2019, city investigators examined Acacia following revelations that the organization had directed tens of millions of dollars in business to a security company established by its president, Raul Russi. The payments reportedly included $12 million in 2017 alone, while the business relationships were not properly identified in certain city disclosures and tax filings.
The city’s 2024 investigation also highlighted compensation at Acacia, reporting that Russi received $935,391 annually and CEO Lymaris Albors earned $836,684. Acacia has defended its executive compensation practices, citing independent assessments of whether the salaries were reasonable.
CORE Services Group, the third organization at the center of the controversy, lost its New York City shelter contracts in November 2021 after investigations exposed questionable business relationships involving its leadership.
During former Mayor Bill de Blasio’s eight years in office, CORE obtained approximately $763 million in city contracts. Reports subsequently revealed that its chief executive, Jack Brown, had employed associates and established a network of private subcontracting companies that generated substantial payments.
Brown reportedly received more than $1 million annually through CORE and affiliated businesses. Campaign records show that he contributed $2,350 to James in 2018.
Federal agents searched CORE’s Brooklyn headquarters in December 2021, and New York City subsequently filed a lawsuit seeking the return of $2.3 million in “excessive executive salaries.”
James’ campaign did not directly address the criticism concerning her office’s handling of the three nonprofits. Instead, campaign spokesperson Grace Smoker attacked Komatireddy’s political fundraising connections.
“Ms. Komatireddy has raked in donations from Trump’s lieutenants and right-wing hacks, including [Ohio GOP gubernatorial candidate] Vivek Ramaswamy,” Smoker said.