NY AG James Criticized for Ignoring Alleged Abuses at Shelters Tied to Campaign Donors

New York Attorney General Letitia James has faced criticism for allegedly failing to investigate three prominent homeless shelter operators accused of financial misconduct, even as their executives, lobbyists, and spouses contributed more than $56,000 to her campaigns over eight years. Records indicate that Samaritan Daytop Village, Acacia Network Housing, and CORE Services Group have not faced enforcement actions from James's office since she took office in 2019.

These taxpayer-funded nonprofits have, however, drawn scrutiny from other state and city agencies, including the State Comptroller's Office and the NYC Department of Investigation (DOI), for issues such as alleged insider deals, excessive executive compensation, and inadequate oversight of public funds. A 2024 DOI examination 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 multi-billion dollar shelter system.

Saritha Komatireddy, a Republican candidate challenging James, stated, "These are precisely the kinds of abuses the attorney general is supposed to investigate." Komatireddy added, "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."

Samaritan Daytop Village has been cited for overbilling the city by $566,556 in a 2024 audit by State Comptroller Tom DiNapoli. Despite operating at a loss for three consecutive years, the nonprofit's CEO received a 25% salary increase to $465,289 in 2025. DOI also found that Samaritan purchased legal and insurance services from companies linked to its own board members. The nonprofit has also faced allegations of inadequate vetting of staff, with a former house manager at one of its facilities pleading guilty to a felony sex offense after being hired despite a criminal history.

Acacia Network, where James's campaign strategist Luis Miranda Jr. and his wife Luz Towns-Miranda have made combined donations of $25,898 to James's campaign committees since 2018, has been investigated for steering tens of millions of dollars to a security firm founded by its president. In 2024, reports highlighted executive salaries, with the president earning $935,391 annually and the CEO $836,684.

CORE Services Group, which received substantial city contracts, had its ties severed by the city in November 2021 following revelations that its chief executive had placed friends on the payroll and created a network of for-profit subcontractors. The executive, Jack Brown, collected over $1 million annually from CORE and its affiliates and donated $2,350 to James in 2018. In December 2021, federal agents raided CORE's headquarters, and the city sued the organization to recover $2.3 million in alleged excessive executive salaries.

In response to the criticisms, James's campaign spokesperson, Grace Smoker, deflected by bringing up former President Trump and accusing Komatireddy of accepting donations from Trump's associates.