$2M Con Job: NY Contractor Admits Defrauding Victims Of Hurricane Sandy

A former New York contractor confessed to stealing millions of dollars from homeowners who were impacted by Hurricane Sandy to fund his lavish lifestyle.

A former Freeport contractor confessed to stealing millions of dollars from homeowners who were impacted by Hurricane Sandy to fund his lavish lifestyle.
Photo Credit: *Canva/nevodka*

Michael Mashburn

09/05/2024 2:00 p.m.

Alexander Almaraz, age 56, who formerly lived on Long Island in Freeport, pleaded guilty to wire fraud charges in Central Islip federal court on Thursday, Sept. 5.

Prosecutors said Almaraz, who owned Design Concepts Group (DCG) in Freeport, targeted homeowners who suffered extensive damage during Hurricane Sandy in October 2012 and later received relief funds from the governor’s office.

Earlier Report: Lamborghini, Porsche, Jaguar, Oh My: NY Contractor Charged In $2M Hurricane Sandy Relief Fraud

As part of his scheme, Almaraz entered into contracts with the homeowners, promising to lift their homes and set them on a temporary support structure in order to demolish and replace their damaged foundations, prosecutors said. The homes would then be lowered back down and the utilities reconnected.

Between October 2015 and June 2019, he agreed to lift the homes of at least 20 customers who had received relief funds from the governor’s office and paid him a total of approximately $2.5 million.

Almaraz also convinced many victims to move out of their homes and pay him rent to live elsewhere, according to investigators.

Instead of performing the agreed-to work, however, he admitted to using the homeowners’ money to pay for personal expenses, including credit card bills and land purchased in Missouri.

He also bought several luxury cars, including a Lamborghini, a Porsche and a Jaguar.

“After Hurricane Sandy turned their lives upside down, the individuals who hired Almaraz to repair their homes were further harmed by the defendant’s unconscionable fraudulent scheme, which extended the time they were deprived of a livable home,” said US Attorney Breon Peace.

“With his guilty plea today, Almaraz is no longer outrunning the damage that his personal greed inflicted on a shattered Long Island community and it is my hope that the victims will find some solace in the defendant being held accountable and making full restitution.”

Almaraz faces up to 30 years in federal prison when he’s sentenced at a later date. He will also be ordered to pay restitution to his victims.

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