Two defendants in Bob Morgan fraud case sentenced with no prison time – InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Life Insurance
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Sponsored Content
    • Webinars
    • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Free Newsletters
Sign in or register to be an INNsider.
  • INN Exclusives
  • NewsWires
  • Magazine
  • Free Newsletters
  • Insider
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
Advisor News
Newswires RSS Get our newsletter
Order Prints
July 25, 2022 Newswires No comments
Share
Share
Tweet
Email

Two defendants in Bob Morgan fraud case sentenced with no prison time

Daily Messenger (Canandaigua, NY)

The criminal case once alleged to be a $500 million mortgage fraud prosecution never reached a day when the allegations could be subjected to a trial.

"We've never really gotten into the merits of the case after four years," U.S. District Judge Elizabeth Wolford said Thursday in federal court in Buffalo, where two of those accused of roles in the alleged fraud were sentenced. Neither of the two - Frank Giacobbe or Michael Tremiti − will serve time in prison. Both pleaded guilty to misdemeanors.

On Friday, local developer Robert "Bob" Morgan and his son, Todd Morgan, are scheduled to be sentenced in Rochester. They, too, pleaded guilty to offenses that should, under their agreements, spare them from prison.

The prosecution was derailed by multiple instances in which prosecutors either did not turn over evidence to the defense, or did not review some digital materials that were seized in searches. Wolford once dismissed the indictment against the four, but decided the prosecution missteps were sloppy, but not intentional − a decision that allowed the four to be indicted again.

However, additional prosecutorial lapses led to new challenges by the defense, and Wolford was, at the request of defense attorneys, considering a dismissal of the new indictment. She could have dismissed that indictment "with prejudice," meaning prosecutors could not seek new charges on the same allegations.

Instead, facing a hearing about the internal machinations of the investigation, federal prosecutors this year offered the plea deals to the accused.

Wolford said in court Thursday that, based on the evidence she saw before the plea deals, there was a significant chance that she would have again dismissed the indictment − for good.

"This case and the handling of this case is not the way the criminal justice system is supposed to work," she said.

Speaking to Giacobbe, she said, "You never got the opportunity to test those allegations in court. How that would have ended up working out, I don't know. None of us can say."

Lawyers for Giacobbe and Tremiti said their lives had suffered because of the allegations. Even with pleas to misdemeanors, damage was done to the accused, said attorney Donald Thompson, who represented Tremiti.

"It's not nothing to be prosecuted by the federal government," Thompson said of the prosecution, which was once considered one of the largest mortgage fraud cases pursued by the Justice Department in New York.

Thompson said Tremiti had been eager to confront the original allegations at trial. "We were anxious to get to the merits and to challenges the merits of the government's claims."

Robert Morgan and his business associates were accused of fabricating information to receive more generous bank loans for rental properties and other developments. The $500 million figure was not an alleged loss by the banks, but the total of the loans at issue.

Tremiti was the vice-president of finance for Morgan's company, and Giacobbe, a Buffalo-based mortgage broker who helped arrange financing for Morgan properties.

Todd Morgan was project manager for his father's commercial development company.

Giacobbe admitted to inflated information in a bank loan for a Morgan-connected mortgage, and Tremiti admitted to falsifying information for a construction loan.

Contact Gary Craig at [email protected]. Follow him on Twitter at gcraig1.

Older

Florida man charged with $1.6 Million Cares Act loan fraud scheme

Newer

The greatest theft of taxpayer dollars in history

Advisor News

  • SEC obtains judgment against broker charged with defrauding clients
  • Here's one reason why America's racial wealth gap persists across generations
  • Ken Morris: Before you retire early, ask yourself a simple question
  • Half of Kansans have no retirement savings. This statewide program is a no-brainer
  • Savvy Senior: How to choose a 55-plus active adult community
More Advisor News

Annuity News

  • Global Atlantic announces $10B group annuity reinsurance deal with Equitable
  • Colorado adopts new annuity sales regulations
  • National Western Life introduces new fixed indexed annuity, NWL New Frontiers
  • Jackson National announces second quarter 2022 results
  • Brighthouse Financial adds to Shield Level annuity suite with new product
More Annuity News

Health/Employee Benefits News

  • Best’s Commentary: Inflation Reduction Act will benefit U.S. health insurers
  • Virginia Obamacare rates set to fall next year
  • Colorado workers, employers to begin paying 0.45% of wages for voter-approved paid leave program
  • Connecticut insurers defend rate hike requests during public hearing
  • EDITORIAL: Inflation Reduction Act is stealing Medicare dollars
More Health/Employee Benefits News

Life Insurance

  • Alex Murdaugh petitions to delay Mallory Beach trial amid murder charges
  • Sales of life combination products rebound in 2021, LIMRA reports
  • Integrity Marketing Group acquires Richman Insurance Agency
  • How to get the most out of Life Insurance Awareness Month
  • Life application activity down in July, MIB Index reports
More Life Insurance

- Presented By -

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

FEATURED OFFERS

Get Linked INN to your industry Connect with INN on LinkedIn to be first on all the news and insights that matter to your industry.

Press ReleasesAll press releases

  • National Western Life introduces newest fixed indexed annuity, NWL® New Frontiers
  • CybeReady Supports Security Defenses with CISO Toolkit
  • Life and Disability Income Insurance Products from MassMutual Now Available on iPipeline®’s End-to-End Digital Platform
  • Business on the Go with The Crump Mobile App
  • iPipeline® Provides Advisors Excel with Unified Path Toward Accessing Core Data Analytics in Financial Services
Add your Press Release >

Topics

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Sponsored Content
  • Webinars
  • Monthly Focus

Top Sections

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • Insurance Webinars

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2022 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • AdvisorNews

Sign in with your INNsider Account

Not registered? Become an INNsider.