Former Chairman Of The Rochester Housing Authority Indicted For Lying to The FBI
CONTACT: Barbara Burns
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BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging George H. Moses, 50, of Rochester, NY, with two counts of making false statements to Special Agents of the FBI. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the indictment and a previously filed complaint, the defendant was the Chairman of the Board of Commissioners of the Rochester Housing Authority (RHA), which provides housing opportunities and services for the Rochester community and a board member of the Rochester Housing Charities (RHC). The RHA annually receives millions of dollars from HUD.
On March 25, 2015, defendant Moses, as Chairperson of the Board of RHA, caused that Board: (a) to appoint him as one of the three new board members of the RHC, and (b) to approve a loan by the RHA to the RHC in the amount of $300,000.
Subsequently, the RHC entered into an $87,500 one year contract with Capital Connection Partners LLC (CCP). CCP then contracted with Adam McFadden and his company, Caesar Development LLC, executed a contract with CCP entitled the Pass Through Funding and Services Agreement, which provided that CCP would pass through 75% of the funds it received from the RHC to Caesar Development LLC.
In the course of an investigation into these contracts between RHC and CCP and between CCP and Caesar Development LLC, Special Agents of the FBI had occasion to interview defendant Moses regarding his knowledge of those contracts and payment of funds pursuant to them. As alleged in the indictment, during the course of those interviews Moses made the following materially false statements to the FBI:
• When asked how RHC learned of CCP, defendant Moses falsely stated that he could not recall specifically who brought CCP to the attention of the RHC, when in truth and in fact, defendant Moses knew that McFadden had brought CCP to his attention and to the attention of the RHC.
• When asked whether he knew if CCP had any subcontractors doing work under the RHC and CCP Contract, Moses stated that he was unaware of any sub-contractors that CCP utilized to execute the RHC and CCP Contract, when in truth and in fact, defendant Moses knew that McFadden and his company, Caesar Development LLC were allegedly performing work on behalf of CCP in connection with CCP’s contract with RHC.
• When told that Adam McFadden and his company received money from the RHC and CCP Contract, defendant Moses stated that he was surprised that McFadden and Caesar Development LLC received such money, when in truth and in fact, defendant Moses knew that McFadden and Caesar Development LLC, had received such money.
• When asked about an RHC board meeting held on May 12, 2015, defendant Moses stated he did not know who typed the minutes and the first time he saw the minutes of the meeting was at an RHA board meeting, when in truth and fact, he was aware that Adam McFadden typed and prepared the minutes which he received by e-mail on June 19, 2015, prior to an RHA meeting;
• When discussing a meeting held between CCP and the boards of the RHA and RHC on December 11, 2015, defendant Moses stated that he was surprised that McFadden was also at the meeting, when in truth and in fact, defendant Moses knew McFadden would be in attendance at such meeting.
The defendant was arraigned before U.S. Magistrate Judge Marian W. Payson and released on conditions.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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