Todd Morgan, the son of prominent Rochester developer Bob Morgan, pleaded not guilty to charges of fraud on Thursday.
Todd Morgan appeared in federal court Thursday morning after being charged in a 62-count indictment this week. Prosecutors say Todd and his cousin Kevin Morgan misled financial institutions in order to get bigger loans for seven properties across Western New York.
In court, Todd Morgan was released on a $25,000 bond.
Prosecutors say the pair would take steps, like turning on televisions and radios, to make vacant buildings appear occupied.
Two loan officers, 43-year-old Frank Giacobbe of East Amherst and 34-year-old Patrick Ogiony of Buffalo, were also charged in the case. And Wednesday, U.S. Attorney J.P. Kennedy said the investigation is still underway and more people could face charges in the investigation.
In a statement Wednesday, Bob Morgan said both Todd and Kevin had been suspended without pay. Bob Morgan added, “Morgan Communities continues to cooperate with a federal investigation related to federally backed loans placed to several developers through a specific mortgage broker. We have been and continue to be current on all loan obligations.”