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Date: 02-15-2022
Case Style:
Case Number: 6:19-cr-06166-EAW-1
Judge: Elizabeth A. Wolford
Court: United States District Court for the Western District of New York (Monroe County)
Plaintiff's Attorney: United States Attorney’s Office
Defendant's Attorney:
Description: Rochester, New York criminal defense attorney represented defendant charged with wire fraud and filing false tax returns.
Adam C. McFadden, 50, of Rochester, NY, who was convicted of wire fraud and filing a false tax return.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that McFadden was the Executive Director for 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 until 2019, McFadden returned to his position as the Executive Director of Quad A for Kids, which provides after-school and extended-day learning programs at some Rochester City School District elementary schools. Quad A for Kids operates as a separate entity funded through the Rochester Area Community Foundation Initiatives Inc. (RACF).
Between February 2012 and December 2018, McFadden submitted fraudulent invoices and receipts to the RACF for reimbursements in the approximate amount of $131,163.00. Specifically, McFadden created fraudulent invoices purportedly from: an individual for various computer and IT related services that were never provided; an entity that provided various sports, fitness and related products and services; entities that 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 submission 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 debts owed by the defendant.
In August 2017 and February 2018, McFadden created fraudulent $4,000.00 invoices from the North East Area Development Association (NEAD) to Quad A for Kids, purportedly for training services provided by NEAD to Quad A for Kids. Although the training services were never performed by NEAD, McFadden caused Quad A for Kids to pay NEAD $8,000.00. NEAD then fraudulently paid the defendant $7,000.00 of the $8,000.00 that NEAD had fraudulently received.
In addition, in 2015, McFadden owned a company called Caesar Development LLC, which received an $87,500 contract from the Rochester Housing Charities for services which were never performed. Also, for the tax years 2015 through 2017, 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 sentencing is the result of an investigation by the Department of Housing and Urban Development, Office of Inspector General, under the direction of Acting Special Agent-in-Charge Brandon Gardner; the Internal Revenue Service, Criminal Investigations Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge, New York Field Office, and the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Stephen Belongia.
18:1343.F FRAUD BY WIRE, RADIO, OR TELEVISION
(1)
Outcome: Sentenced to 18 months in the custody of the Bureau of Prisons, to run concurrently with sentence imposed in 6:19-cr-6039, for a total of 18 months; 3 years Supervised Release, to run concurrently with sentence imposed in 6:19-cr-6039, for a total of 3 years. See Judgment for standard, mandatory and special conditions of Supervised Release. Fines are waived. Restitution to be made in the amount of $265,528.00. Restitution will be joint and several with any other defendant(s), convicted in this case or any related case, who share the same victim(s) and losses. SPA of $100 due immediately
Plaintiff's Experts:
Defendant's Experts:
Comments: