Pittsford man pleads guilty for role in multi-million dollar mortgage fraud scheme
ROCHESTER, N.Y. (WHEC) — A top executive at a local development company pleaded guilty on Tuesday to bank larceny.
Kevin Morgan, 47, of Pittsford—the nephew of Morgan Communities President Bob Morgan—is accused of exaggerating the rental rolls and income levels at their properties in order to secure loans they otherwise wouldn’t have qualified for.
In September 2016, Kevin Morgan, along with one or more co-conspirators, caused ESL Federal Credit Union to issue a construction loan based on inaccurate information regarding the construction contract price. The loan was used to construct Ellison Heights Apartments, a multifamily residential complex in Penfield, NY.
Morgan saw and was aware of documents reflecting inaccurate information and agreed, along with one or more co-conspirators, for that information to be submitted to ESL to obtain a larger amount of the construction loan than what would have otherwise been supported by the actual figures.
Morgan’s charge of bank larceny carries a maximum penalty of one year in prison and a fine of $100,000
Sentencing is scheduled for Oct. 20, 2022, before Judge Wolford.