December 21, 2018 01:08 PM
A top executive at a local development company plead guilty on Friday on a charge of conspiracy to commit bank fraud.
Kevin Morgan, the nephew of Morgan Communities President Bob Morgan is charged with cooking the books. Morgan is accused of in some cases, going to extreme measures to say how much money certain properties were bringing in, in order to secure loans they otherwise wouldn't have qualified for.
Kevin and Todd Morgan are the vice president and project manager at Morgan Communities.
Federal prosecutors say with the help of these two mortgage brokers, Frank Giacobbe and Patrick Ogiony, they were able to lie to banks to secure $175 million in funding for a half-dozen developments in New York and in Pennsylvania.
The charge carries a maximum penalty of 5 years in prison and a $250,000 fine. If Kevin agrees to cooperate with officials it is likely that his sentence would be reduced.
Bob Morgan, the president of Morgan Communities and the uncle and father to the Morgans, has not been charged but the investigation is still on-going.
Updated: December 21, 2018 01:08 PM
Created: December 21, 2018 10:29 AM
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