Former Councilman Adam McFadden Goes to Jail for Wire Fraud, Files False Tax Return | USAO-WDNY
CONTACT: Barbara Burns
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ROCHESTER, NY – U.S. Attorney Trini E. Ross announced today that Adam C. McFadden, 50, of Rochester, NY, who was convicted of wire fraud and filing a false tax return , was sentenced to 18 months in prison by U.S. District Judge Elizabeth A. Wolford. McFadden was also ordered to pay restitution totaling $265,528.00 to Quad A For Kids, the Internal Revenue Service and Rochester Housing Charities.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, said McFadden was the executive director of Quad 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 to 2019, McFadden returned to his role as Executive Director of Quad A for Kids, which provides after-school learning and extended day programs in select elementary schools in the Rochester City School District. Quad A for Kids operates as a separate entity funded by Rochester Area Community Foundation Initiatives Inc. (RACF).
Between February 2012 and December 2018, McFadden submitted fraudulent invoices and receipts to the RACF for reimbursements amounting to approximately $131,163.00. Specifically, McFadden created fraudulent invoices allegedly from: an individual for various computer and IT services that were never provided; an entity that provided various sports, fitness and related products and services; entities that have provided grant writing and related services; and Amazon, Walmart and Staples. The funds were used, in part, for McFadden’s personal benefit, including personal debts. After the delivery 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 the defendant’s debts.
In August 2017 and February 2018, McFadden created fraudulent invoices for $4,000.00 from the North East Area Development Association (NEAD) to Quad A for Kids, allegedly for training services provided by NEAD to Quad A for Kids. Although the training services were never performed by NEAD, McFadden charged NEAD $8,000.00 through Quad A for Kids. NEAD then fraudulently paid the defendant $7,000.00 of the $8,000.00 that NEAD had fraudulently received.
Additionally, in 2015, McFadden owned a company called Caesar Development LLC, which received an $87,500 contract from Rochester Housing Charities for services that were never performed. Additionally, for the 2015 through 2017 tax years, McFadden provided false information on his personal tax returns, reporting false deductions, including personal expenses, on his Schedule C, which falsely reduced his taxable income. . The reduction in McFadden’s taxable income resulted in a tax loss to the IRS of $46,865.
The conviction is the result of an investigation by the Department of Housing and Urban Development, Office of the Inspector General, under the direction of Acting Special Agent Brandon Gardner; the Internal Revenue Service, Criminal Investigations Division, under Thomas Fattorusso, Special Agent-in-Charge, New York Field Office, and the Federal Bureau of Investigation, Rochester Office, under Special Agent-in-Charge Stephen Belongia.
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