Robert and Todd Morgan sentenced for financial fraud | USAO-WDNY

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CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051

ROCHESTER, NY-U.S. Attorney Trini E. Ross today announced that Robert Morgan, 65, of Rochester, NY, who was convicted of conspiracy to commit wire fraud, has been sentenced to time served and fined $2,000 by United States Chief District Judge Elizabeth A. Wolford. As part of his plea deal, Robert Morgan agreed to pay $16.27 million, which the government said was the proceeds of another financial fraud, to settle the civil forfeiture case brought against him.

Additionally, Todd Morgan, 33, of Pittsford, NY, who was convicted of bank robbery, was sentenced to jail and fined $500.

Assistant U.S. Attorney Evan K. Glaberson, who handled the case, said Robert Morgan was the director of Morgan Ellison Heights LLC, which was the majority owner of Ellison Heights Apartments LLC. His son, Todd Morgan, worked as a project manager for his father’s property 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 price of the construction contract. The defendants were aware of documents reflecting inaccurate information but submitted the information to ESL to obtain a higher construction loan amount than would otherwise have been supported by the actual figures. The loan was used to build Ellison Heights Apartments, a multi-family residential complex in Penfield, NY.

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

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