Department of justice

United States Attorney James P. Kennedy, Jr.

Western District of New York

FOR IMMEDIATE RELEASE CONTACT: Barbara Burns

NOVEMBER 21, 2019 PHONE: (716) 843-5817
www.usdoj.gov/usao/nyw FAX #: (716) 551-3051

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FORMER CHAIRMAN AND FORMER EMPLOYEE

OF THE ROCHESTER HOUSING AUTHORITY
CHARGED IN 55-COUNT SECOND
SUPERSEDING NDICTMENT

ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a
federal grand jury has returned a 55-count second superseding indictment charging George
H. Moses, 50, of Rochester, NY, in 53 counts with conspiracy to commit wire fraud, wire
fraud, federal program fraud, aggravated identity theft and filing false tax returns, and
charging Janis White, 58, of Rochester, New York, in 13 counts with conspiracy, wire
fraud and obstruction of justice. The conspiracy, wire fraud, and obstruction charges each
carry a maximum penalty of 20 years in prison and a $250,000 fine. The aggravated
identity theft charge carries a mandatory consecutive term of two years in prison. The
federal program fraud charges each carry a maximum of 10 years in prison and a $250,000
fine. The tax charges each carry a carry a maximum of 3 years in prison and a $250,000
fine.

In October 2019, Moses was charged in a 28-count indictment for making false
statements to the FBI and wire fraud. Those charges are part of the second superseding
indictment. White was recently charged by criminal complaint and those charges are
likewise included in the second superseding indictment.
 Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that
according to the second superseding indictment, Moses is charged with various schemes to
defraud the Rochester Housing Charities and a scheme to defraud Quad A for Kids and
Rochester Housing Charities.

Moses is the Executive Director of North East Area Development Association

(NEAD) in Rochester, a not-for-profit neighborhood organization governed by a volunteer
board of directors, which worked with city officials and agencies to revitalize and stabilize
the Sector 8 neighborhood in the northeast quadrant of Rochester. The defendant was also
the Chairman of the Board of Commissioners of the Rochester Housing Authority (RHA)
until 2018, and a member of the board of directors of the Rochester Housing Charities
(RHC) from March 2015 to 2017.

Former Rochester City Councilmember Adam McFadden was the Executive

Director of Quad A for Kids, which provided after-school and extended-day learning
programs at some elementary schools in the Rochester City School District. The
organization operated as an entity separate from the Rochester City School District and
received funding from the Rochester Area Community Foundation Initiatives Inc. (RACF).
Quad A for Kids shared some of the RACF’s administrative staff but employed its own
executive director, executive assistant, and program staff. McFadden also owned Caesar
Development LLC, a limited liability company located in Rochester.

Moses is accused of conspiring with McFadden to defraud Quad A for Kids and the
RACF. In August 2017, and February 2018, McFadden created two false invoices stating
that Quad A for Kids owed NEAD $4,000 for purported training and other services NEAD
provided on behalf of Quad A for Kids at various Rochester City schools. Moses and
McFadden fraudulently caused the RACF, on behalf of Quad A for Kids, to pay NEAD
$8,000, knowing that services were never provided. McFadden then created two invoices
which falsely stated that NEAD owed his company Caesar Development LLC a total of
$7,000 for purported consultation services Caesar Development LLC provided to NEAD.
In fact, Caesar Development LLC did not provided such consultation services to NEAD.
Earlier this month, McFadden pleaded guilty in federal court for his role in the Quad A for
Kids fraud. He is awaiting sentencing.

Moses is also charged with defrauding the RHC by causing the RHC to overpay the
RHC’s Executive Director’s salary and to make other payments to the Executive Director
to which the Executive Director was not entitled. The defendant then received a portion of

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those funds, either in the form of a cash payment or a wire transfer to a bank account
controlled by Moses. Specifically, between January 2018 and September 2019, the
defendant caused the RHC to pay to the RHC’s Executive Director $500 in salary every
two weeks to which the Executive Director was not entitled. Moses then caused $380 from
each fraudulent payment to be transferred to the defendant’s bank account without the
knowledge of the Executive Director.

Moses is further charged with causing the RHC to pay a contractor an inflated
amount and requiring the contractor to kick back to him approximately $25,000 of such
funds. Moses is further charged with defrauding the RHC by causing the RHC to pay an
inflated amount to purchase two vehicles, one of which Moses used for personal use, and
with filing false tax returns for the years 2015 through 2018.

White, who was the Executive Secretary for the Director of the RHA and the
previous board secretary for the RHC, and Moses are charged with defrauding the RHC by
causing the RHC to pay a company controlled by White for work that was never performed.
HJJ Property Development (“HJJ Property”) was a business started on March 9, 2018, with
an address of 21 Bock Street, Rochester, NY. The business was owned by Margaret Jones
and Howard Jones Jr., White’s mother and stepfather. While HJJ Property was owned by
Margaret Jones and Howard Jones, Jr., White actually controlled HJJ Property. The scheme
to defraud the RHC allegedly involved White, on behalf of HJJ Property, billing the RHC
for worked never performed by HJJ Property. White submitted false invoices on behalf of
HJJ Property totaling approximately $87,069.00.

At times, White would prepare a fraudulent invoice from HJJ Property addressed to
the RHC which made it appear that HJJ Property had provided services to the RHC.
Despite HJJ Property providing no services to the RHC, White and Moses used the RHC
to pay HJJ Property the amount contained on the fraudulent HJJ Property invoice. On other
occasions, a contractor would provide an employee of the RHC with an estimate for
services to be performed for the RHC. The RHC employee would email the estimate to
Moses who approved the hiring of vendors for the RHC. Moses would then email the
estimate to White. White, in turn, would prepare a fraudulent invoice from HJJ Property
addressed to the RHC. The fraudulent invoice made it falsely appear that HJJ Property
would be providing the services to the RHC that were actually going to be performed by
the contractor. The amount requested to be paid on the HJJ Property fraudulent invoice
would be more than what the contractor had originally requested for such services. White
or Moses would then email to an employee of the RHC the HJJ Property fraudulent invoice.
The RHC employee would submit the HJJ Property fraudulent invoice for payment to the
RHC and Moses would authorize the RHC to pay HJJ Property the fraudulent amount.
White, on behalf of HJJ Property, would then provide a cashier’s check made payable to

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the contractor in the amount that the contractor had originally estimated and requested for
the services it performed for the RHC.

The difference between what the RHC paid HJJ Property and what HJJ Property
paid the contractor was the amount that WHITE and others caused the RHC fraudulently
to overpay for the services provided by the contractor. Between in or about March 2018,
and in or about July 2018, this amount was approximately $48,698.00.

The second superseding indictment also alleges that White attempted to obstruct the
government’s investigation. On December 14, 2018, a Federal Grand Jury Subpoena was
served on HJJ Property. The subpoena requested any and all records related to HJJ
Property and any work HJJ Property purportedly performed on behalf of the RHC. On
February 7, 2019, HJJ Property provided its response to the subpoena.
Included in HJJ Property’s response to the subpoena were various altered or
fabricated documents. The fraudulent documents were prepared after the subpoena was
served on HJJ Property and were produced in response to the subpoena to make it appear
to the investigating agents that HJJ Property was a legitimate company which had
performed services for the RHC.

“As alleged in the second superseding indictment, Mr. Moses, used a variety of
schemes unlawfully to divert public money to himself,” noted U.S. Attorney Kennedy. “It
is unfortunate he did not invest the same effort into his legitimate work on behalf of the
public as apparently he did into the fraudulent schemes he used to enrich himself.”

This second superseding indictment is the result of an investigation by the Federal

Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge
Gary Loeffert; the Department of Housing and Urban Development, Office of Inspector
General, under the direction of Special Agent-in-Charge Brad Geary; and the Internal
Revenue Service, Criminal Investigations Division, under the direction of Jonathan D.
Larsen, Special Agent-in-Charge, New York Field Office.

The defendants are scheduled to be arraigned on the second superseding indictment

on Monday, November 25, 2019, at 11:00 before Judge Elizabeth A. Wolford.

The fact that a defendant has been charged with a crime is merely an accusation and
the defendant is presumed innocent until and unless proven guilty.

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