ROCHESTER – Attorney James P. Kennedy, Jr. announced today that Adam C. McFadden pleaded guilty to wire fraud and filing a false tax return before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that McFadden was a member of the Rochester City Council, while co-defendant George H. Moses is the former 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), an entity that was formed and created to advance the purposes of RHA.
Prior to May 12, 2015, McFadden contacted Capital Connection Partners LLC (CCP), an alleged consulting firm in Washington D.C., to discuss RHC hiring CCP to provide RHC with various services. McFadden advised CCP that he would provide most of the services required by RHC as a subcontractor and that he wanted CCP to act merely as a pass through, meaning, he wanted CCP to pay to him most of the funds CCP received from any future contract with Rochester Housing Charities. McFadden discussed this arrangement with co-defendant George Moses.
On May 15, 2015, McFadden emailed CCP a draft of the contract he wanted CCP to enter with RHC along with a draft of the pass-through agreement he wanted to enter into with CCP. On May 28, 2015, McFadden emailed these drafts to George Moses as well.
On June 19, 2015, McFadden created minutes of an RHC board meeting held on May 12, 2015. The minutes falsely stated: that RHC had contacted three vendors by telephone; that a Request for Qualifications was sent to the three vendors; that the three vendors provided bid proposals containing amounts; and that RHC selected CCP as the winning bidder. On July 7, 2015, RHC entered into a one-year $87,500.00 contract with CCP.