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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of New York

FOR IMMEDIATE RELEASE
Wednesday, October 9, 2019

Former City Councilman Adam McFadden Pleads Guilty To New Charges

CONTACT:   Barbara Burns
PHONE:   (716) 843-5817
FAX #:   (716) 551-3051

ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Adam C. McFadden pleaded guilty before U.S. District Judge Elizabeth A. Wolford to wire fraud. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine. On April 1, 2019, McFadden previously pleaded guilty to unrelated wire and tax fraud charges.

Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that the defendant was the executive director of Quad A for Kids. Founded in 1994, Quad A for Kids provides after-school and extended-day learning programs at some Rochester City School District elementary schools. The four A’s in Quad A for Kids represent the well-rounded programming it delivers to the students: academics, athletics, arts, and achievement. Quad A for Kids operates as a separate entity funded through the Rochester Area Community Foundation Initiatives Inc. (RACF). 

The defendant was the Executive Director for Quads A for Kids between 2004 and 2014. From 2014 to September 2016, McFadden served as an independent contractor for Quad A for Kids. From September 2016 until 2019, the defendant returned to his position as the Executive Director of Quad A for Kids.

Between February 2012 and December 2018, McFadden submitted fraudulent invoices and receipts to the RACF for reimbursements in the approximate amount of $131,163.00.  The funds were used, in part, for the defendant’s personal benefit, including to pay personal debts. Specifically, McFadden created fraudulent invoices purportedly from: an individual for various computer and IT related services that were never provided; an entity that provided various sports, fitness and related products and services; entities that provided grant writing and related services; and Amazon, Walmart and Staples. After the submission of the fraudulent invoices, the RACF reimbursed the defendant personally or paid the various entities used by the defendant. The entities then used the money to pay debts owed by the defendant.

In addition, in August 2017 and February 2018, the defendant created fraudulent $4,000.00 invoices from the North East Area Development Association (NEAD) to Quad A for Kids, purportedly for training services provided by NEAD to Quad A for Kids.  Although the training services were never performed by NEAD, McFadden caused Quad A for Kids to pay NEAD $8,000.00. NEAD then fraudulently paid the defendant $7,000.00 of the $8,000.00 that NEAD had fraudulently received.  

“This defendant previously pleaded guilty to defrauding Rochester Housing Charities, and with today’s plea, he now stands convicted of defrauding yet another not-for-profit agency,” stated U.S. Attorney Kennedy. “While these not-for-profits were created to serve the economically disadvantaged and the youth of our community—defendant diverted funds away from those in need in our community and into his own pocket.  That he would do so while serving as a Rochester City Councilman is particularly egregious, as such behavior is more consistent with that of a public parasite than it is of a public servant.”   
         
The plea is the result of an investigation by the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Gary Loeffert; the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary; and the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office.

Sentencing is scheduled for February 12, 2020, at 3:00 p.m. before Judge Wolford.

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Topic(s): 
Financial Fraud
Updated October 9, 2019