Federal Probe Ties Cannabis Consulting, Nonprofit Grants and Political Power

By CT CannaTimes Editorial Team – August 5, 2025

A sweeping federal grand jury investigation into state-funded nonprofits and political favoritism in Connecticut is exposing deeper links to cannabis licensing, questionable grants, and influence-peddling—centered around Senator Douglas McCrory (D-Bloomfield) and his longtime associate, Sonserae “Cicero” Hamlin, operator of the startup nonprofit SHEBA (Society for Human Engagement and Business Alignment).

Key Cannabis-Related Findings:

• Cannabis Grant Ties: In 2022, Cicero applied to the Connecticut Cannabis Social Equity Council’s Cannabis Accelerator Program but was not selected. Just one month after launching SHEBA’s nonprofit arm, she formed a cannabis consulting company called Melanated Marijuana, operating under “Levity Management” — raising eyebrows over her positioning in the emerging cannabis market while securing other forms of state funding.
• Previous McCrory Cannabis Controversy: This is not McCrory’s first brush with cannabis licensing scrutiny. In 2021, he was at the center of controversy for allegedly trying to insert language into Connecticut’s cannabis legalization bill that would have benefitted multi-state operator Theraplant.
• Cannabis Licensing Investigation Confirmed: Federal investigators are now formally reviewing Connecticut’s cannabis licensing system as part of the broader corruption probe, including the roles of lawmakers and regulators who may have steered contracts or application advantages.

Nonprofit Grants and Cronyism:

According to records obtained via FOIA by Connecticut Inside Investigator, McCrory personally used his influence on the Minority Business Initiative (MBI) board and with DECD officials to direct hundreds of thousands of taxpayer dollars to SHEBA—despite objections from other board members.

• SHEBA Timeline & Grants:
• Founded in 2018 (Inc), with nonprofit status established in January 2022.
• Received $300,000 from MBI in July 2022.
• Partnered with Girls for Technology on a $5 million Small Business Boost Fund allocation in October 2022.
• Received $350,000 in ARPA funds via CTNext in 2023.
• DECD records show SHEBA received $400,000 in federal pass-through funds between 2023–2025.
• Its 2023 IRS Form 990 lists $938,250 in contributions and $303,893 in expenses.

Accountability Concerns Raised:

• Internal DECD emails and meeting transcripts reveal repeated concerns about:
• Lack of financial vetting by SHEBA.
• Inaccurate or incomplete funding documentation.
• Tensions with other grant partners like Girls for Technology and HEDCO.
• Low performance metrics (e.g., $1 million per year for only 10 jobs created).

One DECD official even questioned SHEBA’s legitimacy, while McCrory insisted on supporting “new” and “innovative” entrepreneurs. Critics, including MBI Advisory Board member George Mathanool, strongly objected, calling it fiscally irresponsible.

Federal Investigation Context:

• The investigation reportedly includes disappeared wire transfers totaling $500,000 to nonprofits including The Prosperity Foundation, another group McCrory strongly backed.
• The scandal mirrors earlier corruption cases involving:
• Kosta Diamantis, ex-OPM deputy secretary.
• Michael DiMassa, former Rep. convicted for stealing COVID relief funds.
• Governor Lamont has acknowledged cutting off funds to an unnamed nonprofit “we had some doubts about.”

Political Fallout:

• Senate Republicans issued a press release calling for greater transparency and bipartisan reform in the nonprofit grant process.
• McCrory and Hamlin have not responded to media inquiries.
• Cicero moved SHEBA’s operations into a vacant church in downtown Hartford in 2024.

CT CannaTimes Editorial Statement:

This latest development highlights the dangerous convergence of unchecked political power, loose cannabis oversight, and misuse of pandemic and equity funds. Connecticut’s cannabis industry has long been criticized for being exclusionary, overly expensive, and ripe for manipulation. The inclusion of cannabis licensing in this federal investigation reaffirms what many advocates and whistleblowers have warned: the Social Equity Council, DECD, and politically connected insiders are operating under a veil of secrecy and self-interest.

It’s time for sweeping reform, full public transparency, and an end to insider deals—before the cannabis industry becomes just another political slush fund.

Raw link: https://insideinvestigator.org/sen-mccrory-pushed-funding-toward-nonprofit-named-in-federal-probe/