ROCHESTER, N.Y. (WROC) — Rochester real estate developer Bob Morgan pleaded guilty to mortgage fraud among other charges Tuesday morning.

Morgan was initially arrested four years ago for his involvement in a multi-million dollar mortgage scheme that affected hundreds of city residents.

Under the guilty plea, Morgan will not serve jail time after coming to an agreement with the federal government and the defense. However, it’s possible a judge could still impose a maximum fine of $250,000 dollars, restitution, and probation sentence.

The judge has yet to formally accept the deal on paper.

In September 2016, Morgan caused ESL Federal Credit Union to issue a construction loan based on inaccurate information regarding the construction contract price, according to prosecutors.

Both the federal government and the defense are asking for no restitution or probation .

“Both parties have agreed there is no money to be paid to any victims,” said Joel Cohen, Bob Morgan’s lawyer.

“The key element for the determining loss is whether anyone lost any money, and ESL didn’t lose a single penny, they were repaid and they were repaid timely,” Cohen said. “Mr. Morgan paid all of the loans timely, there were no other penalties and he admitted to no bad conduct so, again, the FCC was unable to prove any improper conduct by Mr. Morgan.”

Now it’s on a federal judge to physically sign the agreement or not.

“It’s an extremely unusual circumstance in federal court, the government only rarely agrees to these. That’s what she means when she [Judge Elizabeth Wolford] says she has to review the plea agreement,” Cohen said.

If Morgan is sentenced to probation, we’re told he can appeal that process, while keeping his guilty plea.

“He’s happy to put this behind him along with his family, continue managing businesses and go on with his life,” he said.