Audit Raises 'Potential Fraud' Concerns at Downtown Partnership of Baltimore

Lack of financial controls and oversight found in organization that manages over $6 million in public funds

Published on Feb. 13, 2026

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A recent audit of the Downtown Partnership of Baltimore (DPOB), a nonprofit that oversees the city's central business district, has raised concerns about the organization's financial management. The audit found lax protocols that could have led to errors or even 'potential fraud,' including a lack of timely account reconciliation, no documented procurement policies, and a finance department plagued by high turnover. DPOB raised over $6 million in taxes and spent $1.1 million in federal COVID funds in the 2024 fiscal year.

Why it matters

As a 501(c)6 nonprofit that manages a large amount of public funds, including surcharge taxes from commercial property owners, DPOB's financial practices and oversight are crucial for ensuring taxpayer money is being used appropriately. The audit findings raise concerns about potential mismanagement or misuse of these public resources.

The details

The audit found that DPOB lacked timely account reconciliation, meaning it wasn't properly checking its financial records for accuracy. It also had no documented policies and procedures for procurement, suspension, and debarment, raising the risk of conflicts of interest or 'sweetheart deals.' The organization also struggled with 'significant turnover' in its finance department over the prior three years. DPOB said it has since hired an outside consultant and a new VP of finance to 'get the finance department back on track.'

  • The 2024 fiscal year audit triggered a 'single audit' due to DPOB spending over $750,000 in federal COVID funds that year.
  • DPOB's new procurement policy went into effect on July 1, 2024, the day after the end of the 2024 fiscal year.

The players

Downtown Partnership of Baltimore (DPOB)

A 501(c)6 nonprofit that oversees Baltimore's central business district, managing over $6 million in taxes and millions more in grants and contributions.

Shelonda Stokes

President of the Downtown Partnership of Baltimore, who earned $317,000 in compensation in the 2024 fiscal year.

Sundeep Kohli

The new Vice President of Finance at DPOB, who was appointed in July 2025 and has over 15 years of financial management experience.

Daren Williams

A temporary controller who joined DPOB in August 2024 and found issues with the organization's financial record-keeping and an employee allegedly overbilling for their own paychecks.

Brandon Scott

The Mayor of Baltimore, whose office is reviewing the DPOB audit and preparing an official response.

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What they’re saying

“I've heard of nonprofit fraud where organizations will have contracted for products or services, and it's contracted with a friend or an acquaintance or somebody that they're connected to, somebody who's collaborating effectively in the fraud. And the monies will be dispersed, and then either the goods will never be received, or the goods will not be everything that the organization necessarily paid for.”

— Erica Harris, Associate Professor, Florida International University School of Accounting (foxbaltimore.com)

“So if you get a lot of money really fast, and you don't have the infrastructure to be able to handle that, that's certainly an opportunity for fraud, certainly an opportunity for mismanagement, right? And, you know, an organization that develops or grows really quickly is certainly at risk for those kinds of things.”

— Erica Harris, Associate Professor, Florida International University School of Accounting (foxbaltimore.com)

What’s next

The Mayor's Office of Recovery Programs is preparing to make required comments on the audit in an official letter.

The takeaway

This audit highlights the importance of strong financial controls and oversight, especially for nonprofit organizations that manage significant public funds. The findings raise concerns about potential mismanagement or misuse of taxpayer money, underscoring the need for DPOB to implement robust policies and procedures to ensure transparency and accountability.