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Freeport business owner sentenced to four years in prison for Hurricane Sandy-related fraud

Alexander Almaraz, owner of Design Concepts Group, was sentenced in federal court, according to the U.S. Attorney's Office

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Alexander Almaraz, the owner of Design Concepts Group LLC in Freeport, was sentenced to four years in prison for allegedly conspiring to commit wire fraud. The charges stem from a scheme Almaraz used to persuade individuals to hire him and pay his business to repair their Hurricane Sandy-damaged homes. 

Almaraz, 55, who pleaded guilty to the charges in Sept. 2024, will have to pay restitution to the victims of his fraud at a later date, as set by his sentencing. U.S. District Judge Joan M. Azrack levied the sentencing in federal court in Central Islip on Sept. 9. 

Following the extensive damage that occurred in New York and New Jersey following the Oct. 29, 2012 landfall of Hurricane Sandy, New York residents whose homes were damaged were eligible to receive funding from the Governor's Office of Storm Recovery through the New York Rising program. 

According to a press release from the U.S. Attorney's Office of the Eastern District of new York, Almaraz entered contracts with homeowners who received funds from the New York Rising program and promised to raise their homes and set temporary support structures that would permit new foundations to be installed.  Almaraz was supposed to lower the homes and reconnect homes' appliances after the foundations were installed.

Between October 2015 and June 2019, Almaraz agreed to lift the homes of at least 20 customers who had gotten New York Rising funding, totalling approximately $2.5 million collected by Almaraz. 

He had convinced many victims to move out of their homes and pay him rent to live elsewhere, all while failing to finish their housing projects. Almaraz allegedly used the victims' money to pay for personal expenses, including credit card bills, land in Kansas City, Missouri, and luxury cars, including a Lamborghini, a Porsche and a Jaguar. 

Joseph Nocella Jr., U.S. attorney for the Eastern District of New York, announced the sentencing alongside James C. Barnacle of the FBI and Nassau County District Attorney Anne T. Donnelly. 

"Although years have passed since Hurricane Sandy caused historic damage to our district, the defendant's victims still feel the emotional and financial pain caused by his selfish crimes," Nocella said the day of the sentencing. "Today's sentence holds Almaraz accountable for using vital recovery funds to fund a lavish lifestyle while his customers were deprived of their homes and suffering emotionally and financially."

According to Barnacle, Almaraz allegedly defrauded more than 20 victims of Hurricane Sandy by promising to raise their homes following the powerful storms that struck Long Island, the Caribbean and other U.S. states on the Atlantic coast in 2012. 

"May today's sentencing send a message that the FBI will never tolerate those who exploit natural disaster recovery efforts for greedy purposes," Barnacle said. 

Following the sentencing, Donnelly said that Almaraz "stole more than a million dollars in recovery funds," approximately $1.5 million according to the U.S. Attorney's Office report.