Morgan apartment building in Clay in foreclosure amid allegations of loan fraud

Clay, NY – The Brookwood on the Green Apartments in Clay are among six Robert Morgan apartment buildings threatened with foreclosure over allegations of loan fraud against the Rochester developer.
US Bank filed a foreclosure action in the state Supreme Court against Robert C. Morgan and one of its related entities, Morgan Brookwood DE LLC, on May 22.
The action seeks to seize Morgan’s apartments and alleges that he and his company committed loan fraud by making numerous false or misleading statements when applying for a $ 16 million mortgage on the property. The loan was made on February 28, 2014 by Arbor Commercial Mortgage LLC, the original lender.
Lenders have also started foreclosure measures on four Morgan apartment buildings in Rochester and one near Pittsburgh, according to WROC-TV.
The foreclosure action on Brookwood over the Green Apartments came on the same day Morgan and three others were charged with federal electronic fraud and bank fraud linked to an alleged half-billion-dollar mortgage fraud scheme. The other three people named in the indictment were Morgan’s son Todd, former Morgan CFO Michael Tremiti and broker Frank Giacobbe.
The indictment alleges bank fraud, wire fraud, money laundering, conspiracy and insurance fraud. Crimes carry a maximum sentence of 30 years in prison and millions in fines.
The program included properties in upstate New York, Pennsylvania, South Carolina, North Carolina, Illinois and Texas, prosecutors said.
Brookwood on the Green, located at 7405 Morgan Road, is one of three Syracuse area properties used in the fraud, prosecutors say. The other two are Rivers Pointe Apartments in Clay and Rugby Square Apartments in Syracuse.
Morgan was a managing member and CEO of Pittsford-based Morgan Management LLC during the alleged scheme. In addition to his role at Morgan Management, he controlled and managed a large portfolio of real estate, prosecutors said.
The indictment alleges that between 2007 and June 2017, Morgan and the other defendants conspired to fraudulently obtain loans from financial institutions such as Arbor Commercial Mortgage. They allegedly provided false information to financial institutions and government-sponsored companies overestimating income from properties owned by Morgan Management or certain executives of the company, prosecutors said.
The false information has prompted financial institutions to issue loans that they would not otherwise have made or for amounts greater than those lenders would otherwise have allowed, prosecutors said.
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