Brendan Keany

Several Involved With Morgan Management Charged With Fraud

Robert Morgan and others face up to 30 years in prison

May 22, 2019 - 4:36 pm
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BUFFALO (WBEN - Brendan Keany) - Robert Morgan, the CEO of Morgan Management, has been indicted in a multi-million dollar mortgage fraud scheme.

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.

Here's a more detailed look at what the investigation discovered:

Below are properties involved in the investigation:

  • The Preserve Autumn Ridge, Watertown, NY
  • The Eden Square Apartments, Cranberry Township, PA
  • The Rochester Village Apartments at Park Place, Cranberry Township, PA
  • The Reserve at Southpointe, Canonsburg, PA
  • 7100 South Shore Drive Apartments, Chicago, IL
  • The Avon Commons Apartments, Avon, NY
  • The Morgan Bay Apartments, Houston, TX
  • Brookwood on the Green, Syracuse, NY
  • The Creek Hill Apartments, Rochester, NY
  • Hickory Hollow, Rochester, NY
  • The Knollwood Manor Apartments, Rochester, NY
  • The Links at Centerpointe, Canandaigua, NY
  • The Nineteen North Apartments, Pittsburgh, PA
  • The Overlook at Golden Hills, Lexington, SC
  • The Penbrooke Meadows Apartments, Rochester, NY
  • The Trails of North Hills Apartments, Raleigh, NC
  • The Rivers Pointe Apartments, Syracuse, NY
  • The Union Square Apartments, Rochester, NY
  • The View at MacKenzi, York, PA
  • The Villas of Victor, Rochester, NY

Kennedy noted that he doesn't believe there will be any changes in the day-to-day operations of these properties at this time, but he urged residents to keep up with the developments of this case so they're prepared if anything major does occur.

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.

Listen to the entire press conference below:

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