Long Island contractor used Sandy relief funds to buy Lamborghini, Porsche, Jaguar, feds say

BY CAROLINE SPIVACK

ALong Island contractor scammed Superstorm Sandy victims out of $2.5 million and spent the disaster-relief dollars on lavish personal expenses, including buying a Lamborghini, a Porsche and a Jaguar, according to a 20-count indictment released by the U.S. Attorney’s O ce in Brooklyn.

Alexander Almaraz, 55, who owns Design Concepts Group in Freeport, Nassau County, was arraigned in federal court on charges of wire fraud conspiracy, wire fraud and attempted wire fraud. Prosecutors said the charges are connected to a scheme wherein Almaraz took advantage of at least 20 clients seeking to repair their homes after Superstorm Sandy devastated New York in October 2012.

“In the aftermath of Hurricane Sandy, the defendant took advantage of distressed homeowners who were desperate to rebuild their homes and their lives,” U.S. Attorney Breon Peace said in a statement.

Almaraz’s attorney did not immediately return a request for comment.

As the owner of DCG, Almaraz entered into contracts with people who quali ed to receive funds from the state’s New York Rising Fund, which was launched in the wake of Sandy to help New Yorkers rebuild their storm-decimated homes. Almaraz agreed to lift his client’s homes—which entailed disconnecting appliances and some demolition— and set them down on temporary support structures while he demolished and replaced damaged foundations, the indictment says.

Between October 2015 and June 2019, he promised to raise at least 20 homes of clients, who had received federal relief dollars through the state, for a combined $2.5 million, according to the indictment. But rather than complete the promised work, prosecutors said, Almaraz spent the money on personal matters, paying his credit card bills and buying luxury cars as well as land in Kansas City, Missouri.

For most of the contracts, Almaraz listed DCG as the company of record, but for certain contracts he fraudulently recorded the name of a di erent company, according to the indictment.

Almaraz persuaded some homeowners to rent out properties he owned during construction, the ling says. In one instance, court records show, he told a client that he was willing to rent the person a trailer for $2,700 per month while work on the client’s home was in progress; the client related that Almaraz said $1,200 of the monthly rent would be applied to the lifting costs, according to the indictment.

After a two-year backand-forth, and additional payments made to Almaraz, the client had the home lifted, but new foundation work and a lowering of the house were never completed, prosecutors said, adding that a similar pattern of construction neglect emerged on other projects.

Facing prison

If convicted, Almaraz faces up to 30 years in prison for each count of the indictment.

“Dozens of New Yorkers—in their hour of need—were left homeless and with their homes in ruin, due to the alleged actions of Alexander Almaraz,” Nassau District Attorney Anne Donnelly said in a statement. “For nearly four years, this contractor allegedly promised families that he’d repair their homes, but instead he used disaster-relief money to buy exotic sports cars and property in another state.” ■