New York Attorney General Letitia James has filed a petition to dissolve the Community Resource Collaborative (CRC), a nonprofit organization based in Monroe County. The CRC is accused of misusing government funds intended for local organizations that provide essential services in the Rochester area. The organization, founded by Tina Paradiso in 2021, was meant to distribute federal funds to 12 local nonprofits under the Neighborhood Collaborative Project.
Attorney General James stated, "Vulnerable communities in the Rochester area were relying on financial support from the Community Resource Collaborative, but they only saw a fraction of what they were promised." She further added that CRC's executives used funds for personal expenses and failed to deliver over $243,000 to local organizations.
In November 2022, CRC was allocated $7.1 million from the American Rescue Plan Act over four years. However, an audit revealed that out of $1,067,971 received in 2023, only $750,514 reached local nonprofits. The audit also uncovered unrelated expenses such as $28,000 in transportation costs and $180,000 to repay loans made by Paradiso. Payments included $28,000 for rent to Paradiso’s company Imprintable Solutions and other direct payments totaling tens of thousands of dollars.
Due to these findings, Attorney General James seeks dissolution of CRC for violating not-for-profit corporation laws and aims to appoint a receiver to liquidate its assets and pay owed amounts to nonprofits.
The Monroe County Law Department assisted with this investigation. Attorney General James emphasized her commitment to holding accountable those who misuse charitable funds. Previous actions include recovering millions from individuals involved in defrauding charitable trusts across New York.
This case is managed by Deputy Assistant Attorney General Benjamin Bruce and Assistant Attorney General Audrey Cooper from the Rochester Regional Office.