Freeport contractor pleads guilty to wire fraud in Hurricane Sandy repair scheme

Alexander Almaraz, the owner of Design Concepts Group LLC based in Freeport, New York, pled guilty in federal court Sept. 5 in Central Islip to conspiracy to commit wire fraud.

This charge stems from a scheme where Almaraz misled individuals into hiring him and paying DCG for the repair of their homes damaged by Hurricane Sandy.

The plea was entered before United States District Judge Joan M. Azrack.

Almaraz now faces up to 30 years in prison and will be required to pay restitution to his victims.

Breon Peace, United States Attorney for the Eastern District of New York, Christie Curtis, Acting Assistant Director in charge of the FBI’s New York Field Office, and Nassau County District Attorney Anne Donnelly, jointly 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,” said U.S. 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 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.”

Hurricane Sandy struck New York and New Jersey on October 29, 2012, causing widespread destruction, particularly in coastal and low-lying areas, like in the Eastern District of New York.

Residents affected by the storm were eligible for financial assistance through the New York Rising program administered by the Governor’s Office of Storm Recovery.

According to court records and Almaraz’s statements, he signed contracts with homeowners who qualified for NYR funds, agreeing to elevate their homes and place them on temporary supports to allow for the replacement of damaged foundations.

Once the new foundations were installed, Almaraz was supposed to lower the homes and reconnect essential utilities. Between October 2015 and June 2019, Almaraz entered into agreements with at least 20 NYR-funded homeowners, collecting around $2.5 million in total. He convinced many of them to move out of their homes and pay rent elsewhere, while he neglected the projects.

Instead of completing the work, Almaraz used the funds for personal expenses, including purchasing land in Kansas City, Missouri, and luxury vehicles such as a Lamborghini, Porsche, and Jaguar. His actions caused more than $1.5 million in losses to both NYR and his victims. The case is being prosecuted by the Long Island Criminal Section of the U.S. Attorney’s Office, with Assistant U.S. Attorney Megan E. Farrell leading the effort.