Rochester City Council Vice President Adam McFadden pleaded guilty to federal charges on Monday morning, including a count of wire fraud and a violation regarding filing a false tax return.
McFadden was charged in February with wire fraud, conspiracy and money laundering after an investigation involving an entity funded by the Rochester Housing Authority.
On Monday, the U.S. Attorney's Office released details of a federal plea agreement which would see a sentence of 12 to 18 months, assuming that a federal judge approves that agreement.
It also calls for a fine ranging from $5,500 to $55,000, as well as paying restitution on the wire fraud charge of $87,500 and restitution to the IRS of $46,865 plus interest.
With the original charges, McFadden could have been sentenced to up to 20 years in prison.
He will be sentenced in June. McFadden already announced recently that he would not be running for re-election this year; he was still on City Council through the rest of this year before he entered a plea on Monday.
Because McFadden pleaded guilty to a felony, Rochester’s Corporation Counsel Tim Curtin says that under state law, McFadden has to give up the City Council seat immediately.
Curtin says that as part of Rochester’s City Code, vacancies must be filled by City Council with someone of the same political affiliation. If Council has not filled the vacancy within 30 days, then the Council President has to fill the vacancy. Whoever is named to the position would hold that Council seat until January. McFadden's seat is up for election in November.
City Council President Loretta Scott said that she will be taking steps to reorganize the leadership of City Council. She says this month, she will be nominating a new vice president for Council to consider, and she will serve as interim chair of the Finance Committee until she appoints a permanent replacement by the end of the month.
These statements were released by Mayor Lovely Warren and the City’s Corporation Counsel Tim Curtin:
Mayor Lovely Warren: “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.”
Corporation Counsel Tim Curtin: “Due to today’s news, it is important that I reiterate the relationship between the City of Rochester and the Rochester Housing Authority. The City provides no funding to RHA, which is fully funded by the federal government. The RHA commissioners are responsible for overseeing all RHA operations, including, but not limited to, the Authority’s budget, procurement and hiring. Under State Law, the Mayor is responsible for appointing five of the seven Commissioners. The City also has no role or involvement whatsoever regarding Rochester Housing Charities.”
The Monroe County Democratic Committee will make a recommendation on filling the City Council vacancy. It issued this statement:
"In the coming weeks, members of the Democratic Committee in the South District will meet to put forward a recommendation to Rochester City Council on whom should be appointed to represent their district. Pursuant to Section 5.4 of the city’s charter, City Council holds the power to appoint someone to fill the remainder of the unexpired term. The Monroe County Democratic Committee will work to make sure that citizens of the South District are afforded an opportunity to have a voice in that process."
