George Moses, the chairman of the Rochester Housing Authority, was charged Tuesday with making false statements to special agents of the FBI.
Federal officials said the charges are connected to a contract between Rochester Housing Charities, an affiliated nonprofit created by the Rochester Housing Authority, and another company, Capital Connection Partners LLC, which would ultimately subcontract its work to Caesar Development LLC, a company owned by Rochester City Councilman Adam McFadden.
The Rochester Housing Authority gets millions of dollars from the U.S. Department of Housing and Urban Development. According to the complaint, on March 25, 2015, Moses, as chair of the RHA, caused the RHA board to appoint him to the Rochester Housing Charities board, and approve a loan by the RHA to the RHC for $300,000.
On July 7, 2015, the RHC entered into a one-year contract with a company called Capital Connection Partners for $87,500. According to the federal complaint, the services provided by Capital Connection Partners included advocating with elected officials, “creating entrepreneurial opportuntites and workforce development,” and applying for federal grants.
Federal officials said the next day, McFadden, on behalf of Caesar Development LLC, entered into a contract with Capital Connection Partners LLC to pass through 75 percent of the funds that Capital Connection Partners received from the RHC to McFadden's company. The first two payments of the funds were made by RHA, on behalf of the RHC, to Capital Connection Partners on Aug. 3, 2015, and Dec. 23, 2015, with Capital Connection Partners paying McFadden’s company a few days after each payment.
According to federal officials, Moses is accused of falsely stating that he could not specifically recall who brought Capital Connection Partners to the attention of the RHC, when “in fact, defendant Moses knew that McFadden had brought Capital Connection Partners to his attention and to the attention of the RHC.”
He’s also accused of falsely stating that he was “unaware of any subcontractors that Capital Connection Partners utilized to execute the RHC and Capital Connection Partners contract.”
The federal complaint also states that when told Adam McFadden and his company received money from the RHC and Capital Connection Partners contract, Moses said he was surprised that McFadden and Caesar Development received such money, when in fact, the government says that Moses knew that McFadden and Caesar Development had received such money.
The complaint also says that when discussing a meeting held between Capital Connection Partner and the boards of the RHA and RHD on Dec. 11, 2015, Moses stated that he was surprised that McFadden was also at the meeting, but the government says that Moses knew McFadden would be in attendance at the meeting.
McFadden was not charged in the criminal complaint filed on Tuesday. He had no comment when contacted by WXXI news.
Moses was released Tuesday on his own recognizance pending another court date.
His attorney, Daniel Mastrella told reporters that the charges stem from what he termed, "a sincere attempt previously to cooperate with the government in their inquiry," and he says they are disappointed he's been charged.
Moses also is executive director at a neighborhood organization, NEAD, North East Area Development.
The RHA issued this statement on Tuesday:
"The board of commissioners and executive team at Rochester Housing Authority (RHA) are surprised and dismayed by the charges brought against George Moses, who has served on the board since 2014. We are cooperating fully with the federal investigation.
Today, the Rochester Housing Authority Board has named Tynise Edwards as Vice Chair, who will serve as Interim Board Chairperson during this investigation.
Rochester Housing Charities (RHC), formed in 2012, is an independently operated and managed tax exempt 501(c) (3) entity. RHC has a separate staff, board of directors, officers and business location from Rochester Housing Authority.
The entire team at RHA remains focused on our mission and continuing to serve more than 25,000 lower-income families, seniors and disabled residents and program participants in the five-county Greater Rochester area."
Rochester Mayor Lovely Warren released a statement saying that, “Impropriety at any level of government cannot be tolerated. I was surprised to learn of the allegations outlined today by the US Attorney. Personally knowing the individuals involved, I would be highly disappointed if these allegations are proven to be true. While the Housing Authority is not a department of City government and the City has no day-to-day control over the Authority; it is my goal to ensure that it functions at its highest and fullest capacity to provide for its residents and I will take any action within my authority to ensure their well-being.”
The Mayor of the City of Rochester is statutorily responsible for the appointing five of seven members of the Rochester Housing Authority Board of Commissioners. Once appointed, the City of Rochester does not does not have the authority to approve its budget, nor does it oversee its expenditures.
City officials say that RHA is fully funded by the federal government and no local City taxpayer dollars fund RHA operations. They say the city does not have any fiscal involvement or oversight with Rochester Housing Charities.
Moses has indicated to city officials that he is taking a leave of absence from the Housing Authority Board of Commissioners pending the outcome of the investigation.
Here is the federal complaint filed by the U.S. Attorney's Office:
George Moses Federal Complaint by WXXI News on Scribd
