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New York AG wants to dissolve nonprofit that allegedly mishandled COVID money

The front page of a report on the forensic review of Community Resource Collaborative
WXXI News
The front page of a report on the forensic review of Community Resource Collaborative. Monroe County commissioned the review.

The New York State Attorney General's Office is asking a court to dissolve Community Resource Collaborative and to appoint a receiver to sell its assets.

The office filed a petition to dissolve the nonprofit on Friday. The Attorney General's office oversees nonprofits in New York and can move to dissolve them through the courts. In its petition, the office argues that the collaborative is insolvent and cannot meet its obligations.

Monroe County hired Community Resource Collaborative in May 2023 to administer grants for about a dozen neighborhood nonprofits.

Over the following months, the county directed more than $1 million in federal pandemic relief funds to the collaborative. But by January, the neighborhood groups had stopped receiving checks.

A forensic review of Community Resource Collaborative found the groups that were supposed to get the money are still collectively owed $243,907.

The county eventually froze payments to the collaborative and commissioned a forensic review of its books. That probe concluded that the agencies involved in the project were owed $243,907.

The office is also asking the court to appoint a receiver to sell the collaborative's assets, including a building on Dewey Avenue. The proceeds would be used to pay the collaborative's debts and liabilities.

Jeremy Moule is a deputy editor with WXXI News. He also covers Monroe County.