U.S. Attorney Trini E. Ross announced today that Robert Morgan, 65, of Rochester, NY, who was convicted of conspiracy to commit wire fraud, was sentenced to time served and fined $2,000 by Chief U.S. District Judge Elizabeth A. Wolford. As part of his plea agreement, Robert Morgan agreed to pay $16.27 million dollars, which the Government alleged was the proceeds of other financial fraud, to settle the civil forfeiture case brought against him.  

In addition, Todd Morgan, 33, of Pittsford, NY, who was convicted of bank larceny, was sentenced to time serve and fined $500.  

Assistant U.S. Attorney Evan K. Glaberson, who handled the case, stated that Robert Morgan was the manager of Morgan Ellison Heights LLC, which was the majority owner of Ellison Heights Apartments LLC. His son, Todd Morgan, worked as Project Manager for his father’s real estate management company Morgan Management.

In September 2016, Robert and Todd Morgan, and others, caused ESL Federal Credit Union to issue a construction loan based on inaccurate information regarding the construction contract price. The defendants were aware of documents reflecting inaccurate information but submitted the information to ESL to obtain a larger amount of the construction loan than what would have otherwise been supported by the actual figures. The loan was used to construct Ellison Heights Apartments, a multi-family residential complex in Penfield, NY.

The sentencings are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent-in-Charge Robert Manchak, Northeast Region.

Original source can be found here.