Authorities have lodged federal wire fraud and money laundering charges against Rochester City Councilman Adam McFadden and Rochester Housing Authority Chair George Moses.
Federal Prosecutors say in 2015, RHA subsidiary, Rochester Housing Charities, hired -- with federal funds -- a Washington, DC, political consulting firm called CCP. US Attorney James Kennedy says that firm allegedly passed 75 percent of those funds to McFadden's company, Cesar Development.
Kennedy says $87,500 was diverted, and more than $65,000 went to McFadden's company. And Kennedy says McFadden created fraudulent minutes of a RHC board meeting to make it appear the contract with CCP was above board.
Moses was charged in October with lying to investigators about the contracts and pleaded not guilty.
Authorities say the investigation is ongoing and they will be looking at other transactions involving the RHA and RHC.