A developer who has played a major role in downtown Rochester development has been indicted on federal fraud charges…and according to the Wall Street Journal, Morgan is now being targeted by the Securities and Exchange Commission.
The U.S. Attorney’s Office in Buffalo unsealed a 114 count indictment against Robert C Morgan charging him with mortgage and wire fraud. They charge Morgan and three others with providing false information to banks in order to obtain larger mortgage loans than the properties would have qualified for. The indictments also name Morgan’s son, Todd Morgan, who was Morgan Management’s project manager. Also named are former finance director Michael Tremiti and Frank Giacobbe, who helped broker inflated real estate loans.
U.S.A Attorney James Kennedy says this could be one of the biggest mortgage fraud cases in the country, and strikes at the heart of the banking, mortgage and insurance industries.
The SEC filed a complaint Wednesday accusing Morgan and other defendants of operating “in a Ponzi scheme like manner” using funds from more than 200 investors in 17 states.
The City of Rochester issued a statement saying it’s concerned with its ongoing projects with Morgan Management and will make sure he meets his obligations to taxpayers.