A contractor who formerly operated a Freeport construction company was sentenced Wednesday to four years in federal prison for a Hurricane Sandy recovery fraud scheme that caused more than $1.5 million in losses and helped fund purchases including a Lamborghini, Porsche and Jaguar, federal prosecutors said.
Alexander Almaraz, 55, now of San Antonio, Texas, was sentenced Sept. 9 by U.S. District Judge Joan M. Azrack in Central Islip after pleading guilty in September 2024 to conspiracy to commit wire fraud, according to the U.S. Attorney’s Office for the Eastern District of New York.
Almaraz owned Design Concepts Group LLC in Freeport and contracted with homeowners who received money through the state’s New York Rising program to repair homes damaged by Hurricane Sandy.
He was originally charged in January 2023 in a 20-count federal indictment with wire fraud conspiracy, wire fraud and attempted wire fraud. The indictment alleged that Almaraz entered some contracts as the owner of Design Concepts Group and, in other instances, falsely represented himself as the owner of another company.
Between October 2015 and June 2019, Almaraz agreed to lift the homes of at least 20 customers who had received New York Rising funding. Those homeowners collectively paid him approximately $2.5 million, prosecutors said.
Under the contracts, Almaraz was supposed to lift the homes onto temporary supports so damaged foundations could be removed and replaced, then lower the homes and reconnect their appliances.
Instead of completing the work, prosecutors said Almaraz used customers’ money for personal expenses, including credit card bills, land in Kansas City, Missouri, and luxury vehicles including a Lamborghini, Porsche and Jaguar.
Authorities said Almaraz also persuaded many customers to move out of their homes and pay him rent to live elsewhere while he neglected their construction projects.
The scheme caused more than $1.5 million in losses to the New York Rising program and individual victims, according to prosecutors.
“Hurricane Sandy ravaged waterfront communities across Nassau County, and in the aftermath, this defendant capitalized on the loss and pain of nearly two dozen homeowners trying to rebuild just to fatten his own wallet,” Nassau County District Attorney Anne Donnelly said.
Donnelly said Almaraz made promises he had no intention of keeping and used recovery money while construction on victims’ homes remained unfinished.
U.S. Attorney Joseph Nocella Jr. said the homeowners continue to feel the financial and emotional consequences of the fraud years after Hurricane Sandy.
“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,” Nocella said.
Restitution to the victims will be determined at a later date, prosecutors said.
The case was prosecuted by Assistant U.S. Attorney Megan E. Farrell of the Eastern District’s Long Island Division.
