George Moses, executive director of North East Area Development and former chairman of the board of commissioners of the Rochester Housing Authority, is facing new charges.
U.S. Attorney James P. Kennedy, Jr. announced on Oct. 24 that a federal grand jury returned a 28-count superseding indictment that charged Moses with conspiracy to commit wire fraud, wire fraud and aggravated identity theft.
In May 2018, Moses was charged in a two-count indictment for making false statements to the FBI. Those charges are part of the superseding indictment.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, said the charges in the superseding indictment involve alleged schemes to defraud Quad A for Kids and Rochester Housing Charities.
Moses is accused of conspiring with Adam McFadden to defraud Quad A for Kids and the RACF. McFadden, former Rochester City Council member, was the executive director of Quad A for Kids, which provided after-school and extended-day learning programs at some elementary schools in the Rochester City School District.
Quad A for Kids operated as an entity separate from the school district and received funding from Rochester Area Community Foundation Initiatives Inc. Quad A for Kids shared some of RACF’s administrative staff but employed its own executive director, executive assistant and program staff. McFadden also owned Caesar Development LLC, a limited liability company in Rochester.
Earlier in October, McFadden pleaded guilty in federal court to charges related to Quad A for Kids and is awaiting sentencing.
According to the superseding indictment against Moses, in August 2017 and February 2018, McFadden created two false invoices stating that Quad A for Kids owed NEAD $4,000 for purported training and other services NEAD provided on behalf of Quad A for Kids at various city schools.
The U.S. Attorney’s Office alleged that Moses and McFadden fraudulently caused the RACF, on behalf of Quad A for Kids, to pay NEAD $8,000, knowing that services were never provided. McFadden then created two invoices which falsely stated that NEAD owed his company Caesar Development LLC a total of $7,000 for purported consultation services Caesar Development LLC provided to NEAD. In fact, Caesar Development LLC did not provided such consultation services to NEAD.
Moses also is charged with defrauding the Rochester Housing Charities by causing the RHC to overpay the RHC executive director’s salary and to make other payments to the executive director to which the person was not entitled. Moses allegedly then received a portion of the funds which were overpaid. The U.S. Attorney alleged that between January 2018 and September 2019, Moses caused the RHC to pay to the RHC’s executive director $500 in salary every two weeks to which the executive director was not entitled. Moses then caused $380 from each fraudulent payment to be transferred to his bank account without the knowledge of the executive director.
“As alleged in the superseding indictment, Mr. Moses, a public servant, unlawfully sought to divert public money to himself,” Kennedy said.
The conspiracy and wire fraud charges carry a maximum penalty of 20 years in prison and a $250,000 fine, while the aggravated identity theft charge carries a mandatory consecutive term of two years in prison. The charges in May 2018 of false statements to the FBI carry a maximum penalty of 20 years in prison and a $250,000 fine.