ROCHESTER, N.Y. (WROC) — Rochester-based real estate developer Robert Morgan has reached a settlement to resolve a lawsuit filed against him by the Securities and Exchange Commission.
According to the settlement (full document below), Morgan paid a court-appointed receiver $66 million, who disbursed $63 million to help finance development projects by Morgan’s company. Documents say an additional $3 million will be disbursed once a federal judge signs off on it.
The settlement will “fully resolve the Commission’s claims” against Morgan, according to federal officials.
“The Commission and Morgan have now agreed to a settlement, the terms of which are
reflected in the Proposed Judgment. The Proposed Judgment is fair and reasonable and in the
public interest,” a letter from the SEC said on September 15, 2020.
Morgan’s officers were raided by the FBI in May 2018. The next week, Bob Morgan, his son Todd Morgan, and two other men were indicted in a 114-count federal fraud case related to Morgan Management. The settlement with the SEC does not impact the federal criminal allegations.
Bob Morgan, the founder of Morgan Management, owns thousands of apartments in Rochester, Buffalo, and elsewhere.
Check back with News 8 WROC as we will continue to update this developing story.