BUFFALO, NY (WROC) — Rochester developer Bob Morgan, his son Todd Morgan, and two other men have been indicted in a 114-count federal fraud case.
The indictment alleges that the Morgans along with Frank Giacobbe, who owned financial company Aurora Capital Advisors, and Morgan Management director of finance Michael Tremiti worked with Bob’s nephew Kevin Morgan, Patrick Ogiony, and Scott Cresswell to defraud financial institutions and government enterprises.
Bob Morgan faces 45 counts including wire fraud, conspiracy to commit wire and bank fraud, and money laundering conspiracy. In court Wednesday, he pleaded not guilty.
Federal prosecutors say members of the group lied to financial institutions about the company’s debt, construction costs, company income and expenses, and building occupancy to get larger loans and additional financial while pocketing the extra cash.
Among other accusations, members of the group are accused of lying on documents for loans for the following properties:
- Morgan Ellicott
- Rugby Square (Syracuse)
- Avon Commons
- Rochester Village (located in Pennsylvania)
- Eden Square
- Villas of Victor
- Park Place of South Park
- Ellison Heights
- Union Square
- Links at Centerpointe
Kevin Morgan, Ogiony, and Cresswell weren’t named in Wednesday’s indictment but have all pled guilty in separate cases. Last year, Morgan’s son and nephew were arrested with two other men, accused of misleading financial institutions in order to secure larger loans than needed for development properties.
Earlier this month, the former operating officer for Morgan Management, Scott Cresswell, admitted to charges of conspiracy to commit wire fraud.
As part of his plea, Cresswell said Bob Morgan directed him to take steps to inflate bills for insurance claims after the March 2017 windstorm. Cresswell also admitted to making fake documents to increase repair bills for properties in Indiana and Pennslyvania.
This is a developing story and will be updated.
Bob Morgan is set to appear in court at 1 p.m. on Wednesday. Federal authorities have scheduled a news conference for 1:30 p.m. News 8 will live stream that news conference. You can watch live.
Morgan Management holds 92 development locations in New York along with a number of other developments in nine other states.