BUFFALO, NY (WROC) — Another Morgan Management official has pleaded guilty to fraud charges.
Former chief operating officer Scott Cresswell admitted to the charges of conspiracy to commit wire fraud on Monday.
As part of the plea, Cresswell claimed that owner Bob Morgan ordered him and others to take steps to inflate insurance costs for damage to Morgan properties. Among the claims, prosecutors say the bill for repairs at a property in Indiana totaled $2.5 million. But Cresswell and others faked documents to make the total increase to $3.2 million. Prosecutors say Cresswell did the same thing for other properties in Pennsylvania and Rochester.
According to prosecutors, Cresswell said Morgan told him to “grind the best you can” to inflate the repair costs for properties related to the March 2017 windstorm.
“With the defendant’s plea today, this Office, with our partners at the FBI and FHA, have peeled back yet another layer in this extensive fraud scheme,” noted U.S. Attorney Kennedy. “Our efforts will not cease until the entirety of the fraudulent scheme is exposed.”
Cresswell faces up to 20 years in prison for the plea.
The guilty plea follows the indictment of four other Morgan Management officials last year in a multi-million dollar fraud case. The men, which includes Morgan’s son Todd and nephew Kevin, were accused of misleading financial institutions on the condition of development properties in order to solicit larger loans than needed.
Bob Morgan himself has not been charged in the case but he faces a lawsuit from at least one financial institution.