Robert Morgan, Three Others Indicted in Alleged Multi-Million Dollar Mortgage Fraud Scheme

Share

1200px-Syracuse_NYA Rochester developer with Syracuse-area properties was indicted May 22 by a federal grand jury in a multi-million dollar mortgage fraud scheme, according to U.S. Attorney James P. Kennedy.
Robert Morgan and three others were charged in a 114-count superseding indictment that alleged conspiracy to commit wire fraud and bank fraud for their roles in a half-billion dollar mortgage fraud scheme.
The others charged are Frank Giacobbe, Todd Morgan and Michael Tremiti.
The defendants each face various additional charges such as wire and bank fraud, and money laundering. Todd Morgan and Robert Morgan are also charged with wire fraud conspiracy to defraud insurance companies. The charges carry a maximum penalty of 30 years in prison and a fine in the amount of double the loss caused by the crimes, which is currently estimated to exceed $25 million.
The four men made an initial appearance in Buffalo before U.S. Magistrate Judge Michael J. Roemer and were released on conditions.
The U.S. Attorney alleged that Morgan and the others provided false information to financial institutions and government-sponsored enterprises, overstating the incomes of properties owned by Morgan Management or certain principals of Morgan Management. According to the charges, the false information induced financial institutions to issue loans for greater values than the financial institutions would have authorized had they been provided with truthful information, and the financial institutions would not have issued at the time had they been provided with truthful information.
The charges involved 20 properties. The central New York properties listed were:
•The Preserve at Autumn Ridge, Watertown;
•Brookwood on the Green, Syracuse; and
•The Rivers Pointe Apartments, Syracuse.
During the course of the alleged conspiracy, the U.S. Attorney said that Robert Morgan was the managing member and chief executive officer of Morgan Management. In addition to his role with Morgan Management, he controlled and managed owned a substantial portfolio of real estate holdings. Frank Giacobbe owned and operated Aurora Capital Advisors, identified himself as the principal, and employed others to assist him in brokering, and attempting to broker real estate loans. Todd Morgan was employed at Morgan Management and worked as a project manager at the company. Michael Tremiti was employed at Morgan Management and worked as director of finance for the company.
Assistant U.S. Attorneys John D. Fabian and Douglas A.C. Penrose, who are handling the case, stated that according to the superseding indictment, between 2007 and June 2017, the defendants conspired with Kevin Morgan, Patrick Ogiony, Scott Cresswell, and others to fraudulently obtain moneys, funds, credits, assets, securities, and other property from financial institutions such as Arbor Commercial Mortgage, LLC and Berkadia Commercial Mortgage, LLC, and government sponsored enterprises, including Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal National Mortgage Association (Fannie Mae).
In the wire fraud conspiracy to defraud insurers, Todd Morgan and Robert Morgan are accused of conspiring with Kevin Morgan and Scott Cresswell to present false and inflated contracts and invoices for repairs to insurers after damages to properties in Robert Morgan’s real estate portfolio, including 34 properties in the Rochester area.
Defendants Kevin Morgan and Patrick Ogiony were previously convicted of conspiracy to commit bank fraud, and defendant Scott Cresswell was previously convicted of conspiracy to commit wire fraud for their roles in the multi-million dollar fraud scheme. They await sentencing.