Alexander Almaraz spent $2.5 million on Hurricane Sandy on lavish purchases, Feds say

This scammer didn’t weather the storm.

A Long Island contractor who allegedly pocketed $2.5 million from victims of Hurricane Sandy and used the money to fund his own personal expenses, including the purchase of a Lamborghini, Porsche and Jaguar, was charged with 20 counts on Thursday.

Alexander Almaraz, 55, who owns Design Concepts Group LLC in Freeport, was arraigned in federal court on charges of wire conspiracy, wire fraud and attempted wire fraud.

Prosecutors said Almaraz used the services of at least 20 customers after Hurricane Sandy hit the New York metropolitan area in October 2012.

“After Hurricane Sandy, the defendant took advantage of distressed homeowners who were desperate to rebuild their homes and their lives,” said Breon Peace, U.S. Attorney for the Eastern District of New York.

Almaraz allegedly made contracts — as the owner of Design Concepts Group and the owner of another company — with distraught homeowners looking to rebuild.

The homeowners he agreed to help received money from the state’s New York Rising program to help rebuild their storm-damaged homes.

New Yorker Tonya Mitchell stands in front of her unfinished raised home in Freeport.

Alexander Almaraz convinced the victims to move out of their homes and pay him rent instead to live elsewhere.


Sandy's aftermath

Hurricane Sandy devastated New Yorkers and New Jersey just over a decade ago.


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ruined house

Almaraz has entered into contracts with homeowners seeking to rebuild a home after a devastating hurricane.


Freeport firefighters respond to a house fire on a flooded street in Freeport.

The hurricane hit the tri-city area on October 29, 2012.


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As part of his scheme, Almaraz convinced the victims to raise their homes and place them on a temporary support structure so that they could be demolished and the damaged foundations replaced. Between October 2015 and June 2019, he agreed to raise the homes of at least 20 financially assisted clients and paid him about $2.5 million in total.

He also convinced many landlords to move out and pay him rent instead to live elsewhere. With homeowners out of the way, he neglected building projects.

Prosecutors say the scammer took the money and used it to pay for his personal expenses, including credit card bills, land bought in Kansas City, Missouri, and several luxury cars, including a Lamborghini, Porsche and Jaguar.


Breon Peace
U.S. Attorney Breon Peace addressed Almaraz, saying the Long Island contractor had “taken advantage of distressed homeowners.”
Gregory P. Mango

“Dozens of New Yorkers — in an hour of need — were left homeless and their homes were in ruins due to the alleged actions of Alexander Almaraz,” Nassau District Attorney Ann Donnelly said in a statement.

“For almost four years, this contractor allegedly promised families that he would renovate their homes, but instead, he used disaster relief money to buy exotic sports cars and out-of-state real estate.”

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

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