Pittsford Man Pleads Guilty to Multi-Million Mortgage Fraud Scheme
BUFFALO, N.Y. – Kevin Morgan, 42, of Pittsford, NY, pleaded guilty to conspiracy to commit bank fraud, which carries a maximum penalty of five years in prison and a fine of $250,000.
Assistant U.S. Attorneys John D. Fabian and Douglas A.C. Penrose stated that between March 2011 and June 2017, Morgan, along with co-defendants Todd Morgan, Frank Giacobbe, Patrick Ogiony, and others, conspired to defraud financial institutions, including UBS Securities LLC, Arbor Commercial Mortgage LLC, and Berkadia Commercial Mortgage, LLC.
Morgan was employed as a Vice President at Morgan Management, LLC, a real estate management company that managed more than 100 multi-family properties. Todd Morgan also was employed by Morgan Management as a Project Manager. Morgan and his brother worked with Frank Giacobbe, who owned and operated Aurora Capital Advisors, LLC, a mortgage brokerage company, and Patrick Ogiony, an Aurora employee, to secure financing for properties managed by Morgan Management or certain principals of Morgan Management.
The defendants provided false information to financial institutions and government sponsored enterprises that overstated incomes of properties managed by Morgan Management or certain principals of Morgan Management. This resulted in the financial institutions issuing loans for larger amounts than the financial institutions would have authorized had they been provided with truthful information.
In one such instance, Morgan and his co-defendants provided false information to Berkadia Commercial Mortgage, LLC, in connection with Rochester Village Apartments at Park Place, a multi-family residential community owned by certain Morgan Management principals. The false information included inflated income derived from storage unit rentals, inflated reports of rental income, and reporting apartment units as occupied before certificates of occupancy were obtained for those units.
“History has shown us the havoc that can be wrought when fraud takes place in the mortgage industry,” noted U.S. Attorney James P. Kennedy. “This investigation, and today’s plea, protect that industry from fraud and those who invest in securities which are backed by mortgages.”
Mandatory Facts:
Defendant: Kevin Morgan
Criminal Charges: Conspiracy to commit bank fraud
City and State: Buffalo, New York
Date: Between March 2011 and June 2017
Sentence: Faces up to 5 years in prison and a fine of $250,000
Dollar Amounts: $2.5 million
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News