Federal prosecutors have released court documents filed after the chief operating officer of Morgan Management admitted to inflating damage numbers on Morgan’s apartment properties after the March, 2017 windstorm.
The papers say Developer Robert Morgan’s company was paid nearly $3 million more than the actual cost of repairs because Scott Cresswell inflated the damage estimates on buildings in Rochester, Pennsylvania and Indiana. The charging document says Cresswell upped the estimates at Robert Morgan’s direction to “grind the best you can.” As a result, insurance companies were billed $5.86 million for what actually amounted to $3.65 million in repairs.
In return for his guilty plea last week, Cresswell will spend up to 33 months in federal prison and one-to-three years on supervised release after he gets out.