RHOA Cynthia Bailey Fraud Charges: Contestants accuses 'Bailey Agency School of Fashion' of lying and stealing $1,580 [VIDEO]

Real Housewives of Atlanta reality star, Cynthia Bailey and her company, the Bailey Agency School of Fashion has been accused of fraud for accepting $20 in contest entries to select models who won to be featured on the website for that month.

In an interview with CBS46, Dorothy Lewis, grandparent of 7-year-old Paris Davis accused Bailey's company for taking money and not keeping their word for

"The only thing I had to do was submit her photo and then I had to submit an entry fee on the website," Lewis explained. "It's just not right to be advertising that you're going to do one thing and take people's money from around the country and you're not following through on what you're saying," Lewis said.

There additional problems that came along with portions of the donated proceeds going to the Atlanta Diaper Relief charity that folded six months ago. The station caught up with Cynthia and the reality star admitted that she didn't know about the charity's end, "We didn't even realize it folded until we reached out to her to let her know we were going to be changing it over."

 Eventually, Bailey forwarded the proceeds over to Kile's World, which was started by Tameka Foster for her late son who died in a Jet Ski accident in 2012.

Reportedly, there were 79 entries and $1,580 collected before the site was updated and the reality star promises to give a refund to unhappy people who've submitted for contests.

Bailey released a statement to CBS46:

"The program is not revenue driven. The Bailey Babies Contest was created in the spirit of giving moms with young babies a platform to give their children exposure. This was a fun & inexpensive way to involve young babies in the school since they are obviously too young to participate in any of the other school programs that are offered. The program was also developed for the purpose of extending our brand out to people outside of the Atlanta area that support and want to be a part of The Bailey Agency. I apologize for any negligence on my part as far as my staff not keeping the website properly updated. I hope after receiving all the correct and updated information from me personally, you can appreciate the sincerity of my intentions. I appreciate you for bringing this important matter to my attention. I can assure The Bailey Babies mommies that this will not be an issue going forward. Thank you for providing the opportunity to address this matter."

CBS46 News