BUFFALO (WBEN - Brendan Keany) - Robert Morgan, the CEO of Morgan Management, has been indicted in a multi-million dollar mortgage fraud scheme.
US Attorney JP Kennedy announces that Robert and Todd Morgan, among others of Morgan Management, have been charged with conspiracy to commit wire and bank fraud in a half billion dollar fraud scheme. Charges carry a max penalty of 30 years in prison. @NewsRadio930 pic.twitter.com/HEKhX9G31s
— Brendan Keany (@BrendanKeany) May 22, 2019
A grand jury returned the 114-count indictment that charges three other people, including Morgan's son, Todd, with similar charges.
"The mortgage fraud scheme alleges that in about 2007 and in June of 2017, the defendants conspired with other individuals...fraudulently to obtain money, funds, credits assets and securities and other property from various financial institutions and government-sponsored entities, which included Freddie Mac...and Fannie Mae," said US Attorney JP Kennedy at a press conference on Wednesday afternoon.
Frank Giacobbe, who owned and operated Aurora Capital Advisers, as well as Michael Tremiti, the director of finance for Morgan Management, were the two others involved in this specific indictment.
The investigation alleges that the defendants provided false information to financial institutions and government entities regarding the true value of properties owned by the company, which caused these institutions to issue larger loans at times they would not have been issued, had these institutions received correct information.
These charges carry a maximum penalty of 30 years in prison, as well a fine that's double the amount of the loss caused by these crimes, which is currently estimated to exceed $25 million.
