Feds target emails in Morgan fraud investigation
ROCHESTER, N.Y. -- Federal investigators are focusing on emails they believe show crimes committed by a local development company. On May 10th, a judge signed off on a search warrant, giving investigators access to four email accounts associated with Bob Morgan's company.
They believe the emails contain possible evidence of wire and bank fraud. Those email accounts belong to Morgan's son, Todd, and his nephew, Kevin.
Federal authorities allege Kevin and Todd Morgan conspired to provide false information to financial institutions. The goal according to the application for a search warrant was to get loans of greater value or loans that would not have been issued at all if they were based on truthful information.
Two of the email accounts belong to Kevin, the vice president of the company and another two to Todd, a project manager. Investigators believe the accounts were used to send false information to potential lenders.
Documents identify three properties in Pennsylvania that were involved: Rochester Village, Southpointe and Eden Square.
The warrant application notes the investigation demonstrates the fraud occurred across the Morgan Management and Morgan Communities real estate portfolio.
In one example, investigators say Todd and Kevin Morgan staged apartments during inspections to "create the false impression that the units were occupied ... by turning on radios in unoccupied apartments and placing mats and shoes outside the doors.”
Two other men are also named in this search warrant application. Frank Giacobbe, a mortgage broker in Buffalo and his employee Patrick Ogiony. Investigators believe all four men conspired together to defraud lenders.
The probe of company emails came to light just one day after the Morgan's offices in Pittsford were raided by the FBI.
No charges have been filed at this time.
In a statement released Wednesday night, Robert Morgan said:
Morgan Communities continues to cooperate with a federal inquiry that we believe is related to federally backed loans placed to several developers through a specific mortgage broker or brokers. We have been and continue to be current on all loan obligations. Morgan Communities has nearly 40 years in the commercial and residential real estate business. Our developments drive revitalization, promote and preserve the historical and cultural roots of our cities, and make a difference in the communities we serve. We look forward to the conclusion of this inquiry.