Court Allows AG to Dissolve Community Resource Collaborative for Misusing Funds
New York Attorney General Letitia James announced on Tuesday that a court order has been secured to dissolve the Community Resource Collaborative (CRC), a Monroe County nonprofit accused of misusing federal funds intended to support community service organizations in the Rochester area. The order also appoints an independent receiver to manage CRC’s assets and distribute funds to local nonprofits that were owed money.
The court’s decision follows an investigation by the Attorney General’s office, which revealed that CRC executives misappropriated tens of thousands of dollars in federal funding for personal expenses and failed to allocate more than $243,000 to community organizations that were promised financial aid.
“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,” James said in a statement. “The Neighborhood Collaborative Project was established to help address poverty, food insecurity, and other issues affecting New Yorkers in Rochester, but instead the CRC pocketed money that belonged to community-service organizations. Today’s court order will return funds to Rochester-area organizations that were owed money so that they can help New Yorkers access housing, food, and other essential services.”
CRC was selected in November 2022 to receive $7.1 million in federal funds over four years through the American Rescue Plan Act to administer the Neighborhood Collaborative Project. The initiative was designed to support 12 local organizations providing critical services to Rochester residents. In 2023, CRC received $1,067,971 in federal funding, but only $750,514 was distributed to the intended recipients.
An audit conducted by Monroe County uncovered significant financial mismanagement and self-dealing within the organization. Among the findings:
CRC executives spent $28,000 on transportation expenses, primarily for Uber rides.
The organization disbursed $180,000 to repay loans made by its founder, Tina Paradiso.
Direct payments were made to CRC directors, including $28,000 in rent to Paradiso’s company, Imprintable Solutions; $10,000 for personal security; and $20,000 to board member Anthony Hall.
CRC failed to maintain proper financial records and accounting systems, with many disbursements lacking detail or appropriate documentation.
The court order prohibits CRC and its officers, including former Executive Director Tina Paradiso, from continuing operations, collecting charitable funds, or transferring any CRC assets. The independent receiver will oversee the liquidation of CRC’s property and assets, ensuring that the recovered funds are distributed to the local organizations that filed claims and are owed money.
Once all assets are liquidated and creditors are paid, the CRC will be formally dissolved by the court.
Local nonprofits affected by CRC’s actions welcomed the court’s decision, expressing hope that the recovered funds will help them continue their work. James emphasized her office’s commitment to holding not-for-profits accountable.
“Anytime a not-for-profit ignores our laws and cheats vulnerable groups and people who are relying on aid, my office will step in to right that wrong and protect New Yorkers,” James said.
The Attorney General’s office credited the Monroe County Law Department for its cooperation and assistance in the case. James says the dissolution of CRC marks a significant step in ensuring that government funds reach their intended recipients and support critical community services in Rochester.
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