Boston City Council Examines Main Streets Oversight After Alleged $150,000 Fraud

BOSTON — August 7, 2025 — Boston's City Council scrutinizes Main Streets program after financial misconduct at Three Squares. The Committee on Post-Audit Government Accountability, Transparency, and Accessibility, chaired by Councilor Julia M. Mejia and convened on a hearing order sponsored by Councilor Erin J. Murphy, heard testimony Thursday on alleged forged documents and the potential misuse of nearly $150,000 in federal funds at Three Squares Main Streets. City Auditor Scott Finn said a two-phase Wolf and Company audit — covering 22 organizations, roughly 127 contracts, and approximately 600 transactions over three years — was contracted for $150,000 and is expected to yield a public report within 60 days. Director of Small Business Alicia Porcino told the council that her team's routine reimbursement review process, not an outside whistleblower, caught the irregularities when a $32,000 ARPA payment triggered scrutiny, and that city funding to Three Squares has since been suspended. Chief of Economic Opportunity and Inclusion Segun Idowu acknowledged the program's structure "is not operating appropriately" and said the administration is exploring a regional consolidation model before expanding Main Streets coverage to neighborhoods such as South Boston and Charlestown, which currently have none.