For their involvement in a wide-ranging mortgage fraud operation, Robert Morgan, Todd Morgan, Frank Giacobbe, and Michael Tremiti have been charged with conspiracy to commit wire fraud and bank fraud.
As per the indictment, the suspects colluded with Kevin Morgan, Patrick Ogiony, Scott Cresswell, and others between 2007 and January 2019 to defraud banking firms like Arbor Commercial Mortgage, LLC, Berkadia Commercial Mortgage, LLC, UBS, and Deutsche Bank, as well as government-sponsored entities like the Federal Home Loan Mortgage Corporation (Freddie M) (Fannie Mae).
The suspects participated in a conspiracy to defraud investment banks and government-sponsored enterprises by supplying misleading evidence to banks in favor of bank loan applications to buy, refinance, or construct assets during the duration of the plot. The defendants applied exaggerated and misleading rent rolls that contained non-existent residents and inflated rentals as part of their home mortgage forms in order to unlawfully raise the revenue for a property in order to support a loan sum that they might not otherwise apply for. Likewise, defendants convinced banks they were paying bogus payments in order to boost revenue, such as claiming that tenants paid for television while it was simply included in the lease. Defendants have dishonestly reduced and capitalized costs to make the rental house tend to earn more revenue in order to justify a higher mortgage payment than they’d apply for.
The defendants took precautions to hide the scam from the banks, including putting on radios in empty units during checks, installing welcoming mats and sneakers in corridors outside empty houses, and hiring people to claim to be occupants in units that the investigators would enter.
Todd Morgan and Robert Morgan are accused of plotting with Kevin Morgan and Scott Cresswell to submit fraudulent and manipulated contracts and receipts to insurance providers for repairs following losses to assets in Robert Morgan’s investment portfolio in the wire fraud scheme to defraud insurers.
Despite the fact that the loans at issue were worth more than $400 million, the gross damage suffered by investment banks and government-sponsored companies as a result of the loan fraud scheme is reportedly projected to be in excess of $9,500,000. The loss from the insurance fraud scam is reportedly expected to be around $3 million.
The accused were arraigned and discharged on terms before U.S. Magistrate Judge H. Kenneth Schroeder.
For their involvement in the multi-million dollar fraud operation, defendants Kevin Morgan and Patrick Ogiony were reportedly guilty of fraud to commit bank fraud, and defendant Scott Cresswell was found guilty of conspiracy to commit wire fraud. The offenders are now pending their sentences.
Every defendant is accused of wire and bank fraud. In addition, Robert and Todd Morgan are accused of fleecing insurance firms. The offences bear a potential sentence of 30 years in jail as well as a fine equal to double the amount of money lost as a result of the offenses.
The statement was issued by US Attorney James P. Kennedy, Jr.
The prosecution stems from an examination directed by Special Agent-in-Charge Stephen Belongia of the Fbi and Special Agent-in-Charge Robert Manchak of the Federal Housing Finance Agency’s Office of Inspector General.
