City Council Vice President Adam McFadden plead guilty Monday to wire fraud, filing false tax returns and claiming illegitimate business deductions.
The guilty plea comes just over a month after Federal prosecutors arrested McFadden for wire fraud, money laundering and conspiracy charges stemming from his work at the Rochester Housing Charities, a charitable arm of the Rochester Housing Authority where McFadden served as Interim Director for a short time in 2014.
According to the FBI, former RHA Board Chair, George Moses funneled money from the charity to McFadden and lied to the FBI about it. Moses was arrested last fall.
Specifically the charges accused McFadden of using a Washington, D.C., consulting firm, Capital Connection Partners, as a pass-through for an $87,500 no-bid contract that forwarded 75% of the money to a firm McFadden owned, Caesar Development LLC.
According to the contract, Capital Connection Partners was supposed to “develop resources, partnerships, and opportunities that emphasize housing development, advocacy, and self-sufficiency resources that are needed to transition families out of poverty,” but instead, they passed on most of the money to Caesar Development, LLC based on a separated agreement contained in a fraudulent email McFadden sent to Capital Connection Partners.
Federal prosecutors say Caesar Development acquired the money but did not do any work.
McFadden, admitted to not accurately reporting his 2015 taxes and said his 2016 and 2017 taxes were fraudulent, claiming some business deductions—including that his business was renting office space—that were not true.
Rochester Mayor, Lovely Warren issued the following statement, Monday. “Today’s plea is another step in allowing the Rochester Housing Authority to move forward to better meet the needs of its residents. I will continue to work with its leadership to ensure all of our residents have access to quality affordable housing. As I stated when these charges were filed, no one is above the law. Our legal system has provided justice in this case and I am grateful to our law enforcement officials for their efforts to protect our community.”
McFadden, 48, faces 12 to 18 months in jail. He will be sentenced June 27