Alexander Almaraz, the owner of Design Concepts Group LLC (DCG) in Freeport, New York, pleaded guilty today in federal court in Central Islip to conspiracy to commit wire fraud in connection with a scheme to induce individuals to hire him and pay DCG to repair their Hurricane Sandy-damaged homes. The proceeding was held before United States District Judge Joan M. Azrack. When sentenced, Almaraz faces a maximum penalty of 30 years in prison and mandatory restitution to his victims.
Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Anne T. Donnelly, Nassau County District Attorney, announced the guilty plea.
“After Hurricane Sandy turned their lives upside down, the individuals who hired Almaraz to repair their homes were further harmed by the defendant’s unconscionable fraudulent scheme, which extended the time they were deprived of a livable home,” stated United States Attorney Peace. “With his guilty plea today, Almaraz is no longer outrunning the damage that his personal greed inflicted on a shattered Long Island community and it is my hope that the victims will find some solace in the defendant being held accountable and making full restitution.”
“This defendant took advantage of vulnerable Long Island homeowners at a time of unimaginable loss, purchasing luxury cars and paying off credit cards with funds meant to repair their storm-damaged homes after Hurricane Sandy battered our shores,” stated Nassau District Attorney Donnelly. “Today’s plea holds Almaraz accountable for his greedy scheme, and the restitution he will be ordered to pay is a necessary step towards making his victims whole. I thank our federal partners at the U.S. Attorney’s Office for the Eastern District of New York and the FBI for their continued dedication to investigating and prosecuting fraudsters who exploited Long Island residents in the aftermath of this devastating storm.”
On October 29, 2012, Hurricane Sandy struck New York and New Jersey, causing catastrophic damage to low-lying and coastal areas, including many neighborhoods in the Eastern District of New York. New York residents whose homes were damaged were eligible to receive funding from the Governor’s Office of Storm Recovery through the New York Rising (NYR) program.
According to court documents and Almaraz’s own admissions today, Almaraz entered contracts with homeowners who qualified to receive funds from NYR. As part of these contracts, Almaraz agreed to lift the victims’ homes and set them down on temporary support structures which would permit the foundations of the damaged homes to be removed and new foundations to be installed. After the new foundations were installed, Almaraz was supposed to lower the homes and reconnect the homes’ appliances. Between October 2015 and June 2019, Almaraz agreed to lift the homes of at least 20 customers who had received NYR funding and who collectively paid him approximately $2.5 million. Almaraz convinced many of these victims to move out of their homes and pay him rent to live elsewhere, all the while neglecting their projects and causing greater loss. Additionally, instead of performing the agreed-upon work, Almaraz used the victims’ monies to pay for personal expenses, including credit card bills, land purchased in Kansas City, Missouri, and luxury automobiles, including a Lamborghini, a Porsche and a Jaguar. The defendant’s fraudulent scheme caused more than $1.5 million in losses to NYR and the defendant’s individual victims.
The government’s case is being handled by the Office’s Long Island Criminal Section. Assistant United States Attorney Megan E. Farrell is in charge of the prosecution.