The North Tahoe Business Association, which has connected small businesses in the region for decades, dissolved last month over alleged financial mishandling and fraud. 

In April 2024, the NTBA board was notified of “significant discrepancies in the organization’s operations,” and “series financial mishandling,” said a letter from interim board president Sean O’Brien. Immediately following the notification, the board suspended the executive director, Alyssa Reilly, who is accused of being the primary and likely exclusive party behind the alleged fraud.

Reilly is still going through legal proceedings, and will make another court appearance this week at the Placer County Courthouse. After that, more details may be available to the public on the specifics of the case. This comes after the Placer County District Attorney’s office filed charges against the former leader, following an investigation by the Placer County Sheriff.

‘Impossible to make up shortfall’

Following the April 2024 findings, the NTBA deployed forensic accounting to examine records from fiscal years 2020-2024. “Each week of discovery added significant debt to the tally, more than anyone within the organization could have imagined,” said O’Brien in the letter.

“There was a great effort put forth through forensic accounting and an attempt to keep the organization above water,” O’Brien told the Tahoe Daily Tribune. “Because it is a nonprofit organization, it’s impossible to make up that kind of a shortfall,” he said, referring to the financial impact of the misuse of funds.

“Despite the board’s efforts to stop the bleeding, the damage had been done,” he wrote in his letter to the public.

A task force set up in fall of 2024 was assigned to investigate the impact of the “apparent fraudulent activity,” and following six months of consistent meetings, concluded with a recommendation to dissolve the group “given the extent of financial losses” and “the lack of any tangible assets.”

“The mounting debt was simply too large to overcome as an organization,” said the letter.

North Tahoe Community Alliance steps in

In the face of NTBA upheaval, the North Tahoe Community Alliance has stepped in to support former members of the NTBA, and was also a part of last year’s task force. “There will be a new committee formed under the North Tahoe Community Alliance to support advocacy for our business community and local economy,” O’Brien wrote. 

“I believe it is sort of an evolution in advocacy, and hopefully we’re able to fill that hole,” he said in a phone interview. “I’m not saying it (the dissolution of NTBA) isn’t going to have a negative impact. That remains to be seen.”

The NTBA was formed in 1979 as a non-profit member-based organization made up of over 200 business and nonprofit entities in North Tahoe. They previously hosted events such as Music on the Beach in Kings Beach, the Kings Beach Snowfest Parade and multiple beach clean-up days.