A top Republican contender in Connecticut’s gubernatorial race abruptly suspended her campaign Thursday after an investigative report accused her of repeatedly using taxpayer-funded city credit cards for personal expenses during her tenure as mayor of New Britain.
The allegations against Erin Stewart immediately upended the Republican primary just days before the party convention and triggered calls for criminal investigations at both the state and federal levels.
The investigation, conducted by the Crumbie Law Group and commissioned by New Britain Mayor Bobby Sanchez, concluded that Stewart engaged in a systematic bypassing of city purchasing rules that allegedly benefited herself, members of her family, and political campaigns.
Investigators reviewed more than $207,000 in charges made between 2016 and 2025 and concluded that most of the spending appeared unrelated to legitimate municipal business.
The report, according to CT Mirror, argued the conduct could potentially violate laws involving fraud, embezzlement, wire fraud, false statements, and misuse of government property.
According to investigators, Stewart allegedly used the city-issued credit card for purchases tied to family birthday parties, clothing, maternity items, groceries, political fundraising, and private club expenses.
The report detailed nearly $47,600 in Amazon purchases, over $19,000 at Costco, thousands more through Instacart deliveries, and more than $19,000 connected to memberships and spending at the Hartford Club, a private Hartford dining and social club.
Investigators also claimed some expenses were disguised in city financial records as “office supplies” or administrative expenses, according to NBC Connecticut.
One of the most damaging claims involved a fundraiser Stewart allegedly hosted at the Hartford Club during her 2017 reelection campaign for mayor.
Investigators said city funds covered portions of those expenses without reimbursement from her campaign operation.
The report also cited social media photos allegedly matching purchases for a Peppa Pig-themed birthday party for Stewart’s daughter, along with purchases for decorations, clothing, balloons, party favors, and household items investigators argued were clearly personal in nature, The Connecticut Centinal noted.
Investigators further alleged Stewart routinely failed to provide documentation for purchases despite city policies requiring receipts and oversight. The report stated approximately 59 percent of the charges lacked supporting documentation.
Auditors previously warned the city about weak oversight surrounding municipal credit cards, though investigators said Stewart’s purchasing privileges were never suspended despite repeated policy violations.
The report also accused Stewart of declining interview requests from investigators after allegedly requesting prepared questions in advance.
Stewart had initially dismissed the probe as a politically motivated “witch hunt,” arguing that the expenditures were budgeted and reviewed during annual audits.
Following the release of the expanded report Thursday, however, she announced she was immediately suspending her gubernatorial campaign and stepping back from public life.
In a public statement, Stewart said she intended to address the allegations directly and pledged to make “full and complete restitution” for anything she may owe the city.
She also endorsed State Sen. Ryan Fazio in the Republican primary.
The scandal rapidly reshaped Connecticut’s Republican race. Fazio called for party unity moving forward, while fellow Republican candidate Betsy McCaughey said the focus should now shift back toward state economic issues.
Connecticut Republican Party Chairman Ben Proto praised Stewart’s decision to suspend her campaign and emphasized the importance of party unity ahead of the general election.
Meanwhile, Democratic Gov. Ned Lamont said the allegations were serious and supported allowing investigators to fully examine the matter before conclusions are reached, WFSB reported.
Connecticut State Police confirmed Thursday that an official investigation has now been opened into the allegations.
Mayor Sanchez also announced the findings have been referred to the U.S. Attorney’s Office and Connecticut’s Chief State’s Attorney for potential further action.
City officials said New Britain will pursue all available legal avenues to recover taxpayer funds allegedly spent improperly during Stewart’s time in office.
