Long Island Contractor Sentenced to 48 Months in Prison for Fraud In Connection With Hurricane Sandy Recovery Funds

Earlier today, in federal court in Central Islip, Alexander Almaraz, the owner of Design Concepts Group LLC (DCG) in Freeport, New York, was sentenced by United States District Judge Joan M. Azrack to 48 months' imprisonment for 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. Almaraz pleaded guilty to the charge in September 2024. As part of the sentence, restitution to the victims will be determined at a later date.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, James C. Barnacle, Jr., Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Anne T. Donnelly, Nassau County District Attorney, announced the sentence.

"Although years have passed since Hurricane Sandy caused historic damage to our district, the defendant's victims still feel the emotional and financial pain caused by his selfish crimes," stated United States Attorney Nocella. "Today's sentence holds Almaraz accountable for using vital recovery funds to fund a lavish lifestyle while his customers were deprived of their homes and suffering emotionally and financially. For this crime of greed, it is fitting that the defendant's home will be a federal prison."

"Alexander Almaraz defrauded more than 20 victims of Hurricane Sandy by promising to raise their storm-ravaged homes and instead used the money for his own personal gain by spending it on luxury items. Almaraz unlawfully sought to profit from the money intended to assist these desperate homeowners following this devastating storm. May today's sentencing send a message that the FBI will never tolerate those who exploit natural disaster recovery efforts for greedy purposes," stated FBI Assistant Director in Charge Barnacle.

"Hurricane Sandy ravaged waterfront communities across Nassau County, and in the aftermath, this defendant capitalized on the loss and pain of nearly two dozen homeowners trying to rebuild just to fatten his own wallet," stated Nassau County District Attorney Donnelly. "In his greed, Almaraz made promises he had no intention of keeping and stole more than a million dollars in recovery funds earmarked to help residents who suffered total devastation in the storm. To add insult to injury, while the construction on his victims' homes remained unfinished, Almaraz was out buying land for himself with their funds. I thank our federal partners at the U.S. Attorney's Office for the Eastern District of New York and the FBI for their commitment to prosecuting heartless schemers who exploited Long Islanders during this tragic event."

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.

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 and suffering. Instead of performing the full scope of 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. Almaraz's fraudulent scheme caused more than $1.5 million in losses to NYR and the individual victims.

The government's case is being handled by the Criminal Section of the Office's Long Island Division. Assistant United States Attorney Megan E. Farrell is in charge of the prosecution.

The Defendant:

ALEXANDER ALMARAZ
Age: 55
San Antonio, Texas; formerly of Freeport, Long Island

E.D.N.Y. Docket No. 23-CR-17 (JMA)