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Court dissolves nonprofit after misuse of federal funds meant for Rochester charities

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Wednesday, January 8, 2025

Court dissolves nonprofit after misuse of federal funds meant for Rochester charities

State AG
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Attorney General Letitia James | Ballotpedia

New York Attorney General Letitia James has secured a court order to dissolve the Community Resource Collaborative (CRC), a not-for-profit organization in Monroe County. The decision follows an investigation that revealed misuse of government funds intended for community service organizations in the Rochester area. An independent receiver has been appointed to manage CRC's remaining assets and distribute liquidated funds to local nonprofits owed money.

Attorney General James emphasized the importance of community-service organizations, stating, "For families struggling to make ends meet in Rochester, and throughout the region, community-service organizations are an essential lifeline, and those groups need the support and funding they expect so they can help others." She added that the Neighborhood Collaborative Project was supposed to address poverty and food insecurity but instead saw funds misappropriated by CRC.

The court order prevents CRC and its leaders, including former Executive Director Tina Paradiso, from operating or handling any charitable funds. A receiver will oversee asset liquidation and ensure distribution to local organizations with claims. Once completed, CRC will be dissolved.

In 2022, CRC was allocated $7.1 million from the American Rescue Plan Act for the Neighborhood Collaborative Project over four years. However, in 2023 only $750,514 out of $1,067,971 received was distributed as intended. An audit by Monroe County uncovered unrelated expenses such as $28,000 in transportation costs mostly for Uber rides by executives and $180,000 repaid loans to founder Tina Paradiso.

The audit also highlighted improper payments including $28,000 in rent to Paradiso’s company Imprintable Solutions and other personal disbursements totaling tens of thousands of dollars. Consequently, CRC failed to deliver over $243,000 promised to charities providing essential services like food and housing.

Attorney General James acknowledged assistance from the Monroe County Law Department in this case. Her office has consistently acted against misuse of charitable funds; notable cases include recovering millions defrauded by attorneys in Albany and Long Island.

This case is managed by Deputy Assistant Attorney General Benjamin Bruce along with former Assistant Attorney General Audrey Cooper from the Rochester Regional Office under Ted O’Brien's leadership. The Division of Regional Offices is overseen by Chief Deputy Attorney General Jill Faber and First Deputy Attorney General Jennifer Levy.

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