Attorney General James Takes Action to Shut Down Monroe County Nonprofit for Financial Mismanagement

October 7, 2024

NEW YORK - New York Attorney General Letitia James today filed a petition to dissolve the Community Resource Collaborative (CRC), a Monroe County not-for-profit, for misusing government funds intended to support local organizations that provide services to Rochester-area communities. The CRC, founded by Tina Paradiso, was created in 2021 to distribute millions of dollars in federal funds to 12 local organizations that provide housing, food, and other essential services to New Yorkers in the Rochester area as part of a program known as the Neighborhood Collaborative Project. However, the CRC's executives used tens of thousands of dollars in federal funds to pay for personal expenses and failed to deliver more than $243,000 to the local organizations that were promised aid. Attorney General James seeks to dissolve CRC and appoint a receiver to liquidate its remaining assets to distribute owed funds to the local nonprofits.

"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," said Attorney General James. "The CRC's executives cheated local organizations that provide essential services to the needy to pay for their personal luxuries instead. To right this wrong, my office is taking action to dissolve CRC for rampant financial mismanagement and to help recoup funds for nonprofits that were promised aid and were left empty-handed."

In November 2022, CRC was chosen to receive $7.1 million in federal funds from the American Rescue Plan Act over a four-year period for the Neighborhood Collaborative Project, an initiative intended to fund 12 local nonprofits that serve the Rochester area. In 2023, CRC received $1,067,971 in federal funding, but only $750,514 was distributed to the local nonprofits.

An audit into CRC by Monroe County found that the nonprofit paid for expenses unrelated to its mission, including $28,000 in transportation expenses, most of them Uber charges for CRC executives, and $180,000 in disbursements to repay loans made by CRC's founder, Tina Paradiso. The organization also made direct payments to its directors for no apparent reason, including $28,000 in rent payments to Tina Paradiso's company Imprintable Solutions, $10,000 for personal security, and $20,000 in direct payments to CRC board member Anthony Hall. The report also concluded that CRC failed to maintain a proper financial management system and financial records. In many instances, accounting entries lacked detail and disbursements were not accounted for by the program and/or agency.

As a result of this self-dealing and financial mismanagement, the CRC failed to deliver $243,907.02 to community charities that provide food, housing, and other services and were promised aid.

Through this petition, Attorney General James seeks to dissolve CRC for violating New York's not-for-profit corporation laws and to appoint a receiver to liquidate CRC's assets and use those funds to pay the local nonprofits the money they are owed.

Attorney General James thanks the Monroe County Law Department for their cooperation and assistance in this matter.

Attorney General James has always held nonprofits, organizations, and bad actors accountable when they misuse charitable funds. In May 2024, Attorney General James secured nearly $6.3 million for individuals who were defrauded by an Albany attorney and a financial advisor who looted family trusts intended to benefit charitable organizations throughout the Capital Region. In August 2023, Attorney General James recovered $510,000 for charity from Long Island lawyers who allegedly illegally paid themselves more than $1.3 million from a deceased client's trust and charitable foundation. In February 2022, Attorney General James sued the former President and CEO of the Humanitarian Organization for Multicultural Experiences, Inc. (H.O.M.E.) for diverting or misusing nearly a million dollars in H.O.M.E.'s charitable assets for her personal gain. In May 2019, Attorney General James announced a settlement with Oneonta Elks over their wrongful use of charitable assets to pay for capital improvements to its lodge building and property, as well as covering general operating expenses.

This matter is being handled by Deputy Assistant Attorney General in Charge Benjamin Bruce and Assistant Attorney General Audrey Cooper both of the Rochester Regional Office which is led by Assistant Attorney General-in-Charge Ted O'Brien. The Rochester Regional Office is a part of the Division of Regional Offices, which is led by Chief Deputy Attorney General for Regional Affairs Jill Faber and First Deputy Attorney General Jennifer Levy.