Rochester City Councilman Adam McFadden pleaded guilty to wire fraud and filing a false tax return in federal court Monday.
He was previously charged in connection to a federal investigation into a scheme where McFadden illegally received funds from the Rochester Housing Authority (RHA).
McFadden faces a maximum sentence of up to 20 years in prison as a result of his guilty plea. His sentencing is scheduled for June.
“I’ll just say this — as a leader in this community I feel it’s important to be [held] accountable for the decisions that you make," McFadden said. "And I’ll say narcissism and ego got the best of me and today was about owning up and being transparent about what I did and trying to move forward with my life."
In October, McFadden was named in a criminal complaint filed by the FBI, which accused RHA Chairman of the Board, George Moses, of lying to federal officials who were conducting the investigation. Moses, 50, now also faces the same charges as McFadden, along with making false statements to special agents of the FBI. That charge carries a maximum sentence of five years in prison and a $250,000 fine.
“I think it’s a victory for tax payers and honest government,” said James Kennedy, US Attorney of the Western District of New York.
The criminal complaint alleged that in 2015 Moses helped appoint McFadden as a board member of the Rochester Housing Charities (RHC) and approved a $300,000 loan from the RHA to the RHC. McFadden previously served as the interim executive director of the RHA in 2014. FBI officials say Moses misled investigators regarding the contracts and monetary transactions.
"I would characterize it as dishonest and self indulgent by using these funds, putting his interests ahead of those of the tax payers of Monroe County," Kennedy said.
They also say the two diverted a majority of money from an $87,500 contract between the RHA and a Washington, D.C. consulting firm to a development project set up by McFadden without the intention of ever providing promised services.
Court documents state that Moses received a copy of McFadden’s guilty plea agreement. Kennedy said the status of Moses' charges are "ongoing."
“Public service is just that. The term public service is not synonymous with public self-service," Kennedy said.
The RHA provides housing opportunities and services for the Rochester community and has an annual contract with the United States Department of Housing and Urban Development from which it receives millions of dollars.
McFadden represented the southern district on the City Council. However, lost the position upon entering a guilty plea.
A spokesperson for the Monroe County Democratic Committee confirmed Monday that members will meet in coming weeks to make a recommendation on whom should be appointed to McFadden's seat.
McFadden previously announced he would not seek re-election.
In 2018, McFadden ran for U.S. Congress in an attempt to take the NY-25 seat, but ultimately lost the Democratic primary to Joe Morelle.