Contractor who stole $2.5M from Long Islanders needing Superstorm Sandy repairs gets 48-months prison term

A contractor who prosecutors said took about $2.5 million from 20 Long Island homeowners to repair residences damaged by Superstorm Sandy, then used much of it to pay credit card bills, purchase luxury cars and buy real estate, was sentenced Wednesday to 48 months in prison.

Alexander Almaraz, 55, formerly of Freeport and now a resident of San Antonio, pleaded guilty to conspiracy to commit wire fraud in September 2024, according to court records.

U.S. District Judge Joan Azrack said she received letters from satisfied customers of Almaraz's construction company, Designs Concept Group of Freeport, asking for leniency. But she said those letters were a “double-edged sword" because they suggested Almaraz knew how to operate the business successfully and legally before his "moral compass" became twisted and he embarked on a scheme to steal from people whose homes were damaged by the deadly 2012 storm.

“He became a thief, pure and simple," Azrack said during a hearing in federal court in Central Islip. “He preyed on desperate people."

Azrack also ordered Almaraz to pay restitution to his victims, the amount of which will be determined at a later date. None of the homeowners appeared in court to provide victim impact statements before sentencing.

Almaraz choked up with emotion as he told the judge he accepted responsibility for his actions, saying he disgraced his family’s name.

“The only thing I can say is I am ashamed," Almaraz said.

Almaraz’s defense attorney, Evan Sugar, of Hauppauge, told the judge that Almaraz did not intend to steal from clients. His business was struggling, and he used funds he received from the victims to take care of earlier responsibilities.

Sugar, who declined to comment after the hearing, said that decision was criminal, immoral and wrong, but said his client was driven by desperation, not greed.

Assistant U.S. Attorney Megan E. Farrell disagreed, telling Azrack that the defendant strung his victims along after convincing them to live elsewhere and pay him rent to live elsewhere — even while he neglected their projects, causing greater loss and suffering. Prosecutors said Almaraz purchased a Lamborghini, a Porsche and a Jaguar with the funds, as well as land in Kansas City, Missouri.

“He wasn’t trying to keep his business afloat," Farrell said. “He was personally thriving."

Prosecutors said Almaraz entered contracts with homeowners who qualified to receive money through New York Rising, a program offered through the Governor’s Office of Storm Recovery. The contracts called for Almaraz to lift the victim’s homes and set them down on temporary support structures, which would permit the foundations of the damaged homes to be removed so new ones could be installed.

After the new foundations were installed, Almaraz was supposed to lower the homes and reconnect appliances. But instead of performing the work, authorities said, Almaraz used the money between October 2015 and June 2019 to enrich himself.

“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," said Joseph Nocella Jr., the U.S. attorney for the Eastern District of New York. “For this crime of greed, it is fitting that the defendant’s home will be a federal prison."