Developer Robert Morgan’s nephew, Kevin Morgan, has pleaded not guilty to federal fraud charges.
Kevin Morgan was arraigned Tuesday morning in a Buffalo courtroom. He and his cousin Todd, plus employees of a Buffalo mortgage broker, are accused of deceiving mortgage appraisers about the value of some of his uncle’s apartment complexes in New York state and Pennsylvania.
Federal prosecutors say mortgages based on the overstated property values were then sold as securities by Fannie Mae and Freddie Mac. The alleged fraud spanned several years.