The dissolution of Monroe County's Community Resource Collaborative (CRC), comes to a head, as New York Attorney General Letitia James secures a court order against the not-for-profit that has reportedly strayed from its mission to assist the vulnerable populations of Rochester. According to information obtained from the Attorney General's office, it was determined that CRC mismanaged and misappropriated funds that were allocated to service organizations, using tens of thousands of dollars for personal expenses.
"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," Attorney General James said. The court's decision not only mandates the organization's dissolution, but also appoints an independent receiver to handle the remaining assets, ensuring that overdue funds reach the rightful local nonprofits that are owed money. This legal move, bars both CRC and its leadership from future operation or the collection of charitable contributions.
The CRC, previously trusted with a sizeable $7.1 million in federal funds from the American Rescue Plan Act, was tasked with supporting a conglomerate initiative known as the Neighborhood Collaborative Project. However, it is now revealed that only a fraction of the received amount was appropriately distributed to local service organizations. With a deficient $243,907.02 unaccounted for, charities were left hanging in the balance.
An intensive audit conducted by Monroe County brought glaring financial discrepancies to light, including $28,000 siphoned off on transport, mainly Uber rides, and $180,000 in loan repayment to CRC’s founder Tina Paradiso. Questionable transactions extended to direct payments to directors, with no substantial rationale. Attorney General James points to such endeavors as a severe betrayal of trust against the people most in need.
Letitia James's office has a track record for holding nonprofits and their leaders accountable. Past cases, cited, for instance include almost $6.3 million recuperated from a case involving an Albany attorney and a financial advisor in May 2024, and recovery of $510,000 from Long Island lawyers in August 2023. These benchmarks reiterate James's office's diligence in rectifying the misuse of charitable funds and preserving the sanctity of the assistance meant for New Yorkers.
This latest enforcement against CRC was led by Deputy Assistant Attorney General in Charge Benjamin Bruce and former Assistant Attorney General Audrey Cooper of the Rochester Regional Office. They, along with their team, play a crucial role within the Division of Regional Offices, safeguarding that justice is served and malpractices within charitable organizations are duly addressed.
