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Business

Robert C. Morgan, the embattled Rochester developer who faces federal mortgage fraud charges, has transferred about half of his properties to a joint venture with a Pennsylvania company, according to court documents. An affiliate of the joint-venture partner also has taken over management of at least one of the properties, according to the documents. The joint-ventur…

Buffalo

Rochester developer Robert C. Morgan has sold the Cheektowaga property containing the area's first Chick-fil-A restaurant, reaping $2.825 million in cash from the deal. Morgan — through Morgan Cheektowaga LLC — sold the restaurant at 1753 Walden Ave. to Bruce 5 LLC, which is controlled by Bernadette O'Connor of Long Island City in Queens. Located just west of the Wal…

Business

If the Securities and Exchange Commission was hoping for quick action against Robert C. Morgan, there are signs it won’t get its way. The federal agency last month filed a securities fraud lawsuit against the Rochester developer, accusing him of running a “Ponzi-scheme-like" operation that used newer investments to pay off earlier investors and loans instead of buying p…

Business

A federal judge on Wednesday denied a request by the U.S. Securities and Exchange Commission to freeze the assets of Rochester developer Robert C. Morgan as the government pursues its securities fraud case against him. But U.S. District Court Judge Elizabeth Wolford allowed other protections, including issuing a temporary restraining order barring litigation against Mor…

Watchdog

Mike Donoghue has known Rochester developer Robert Morgan for more than a decade, as a personal friend and a partner in a relocation business. So it was only natural five years ago for the owner and president of Rochester-based Premium Mortgage to put $500,000 of his own money into investment funds that Morgan had just started. "I knew he had funds, and I asked if I co…

Business

A proposed deal to sell the management of Robert C. Morgan's apartment communities to a Virginia company has fallen through. Norfolk, Va.-based Harbor Group International had been in talks with Morgan Communities to acquire the management rights to Morgan's 140 properties in 14 states. The potential deal was intended to "stabilize" the Morgan portfolio of 36,000 apar…

Buffalo

Rochester developer Robert C. Morgan is facing criminal charges and a separate federal lawsuit accusing him of mortgage, insurance and securities fraud. Now, an attempt by the Securities and Exchange Commission to freeze Morgan's assets has made it difficult for him to retain a defense team, attorney Joel M. Cohen told a federal magistrate on Wednesday. Morgan, found…

Watchdog

Eighteen months ago, the network of companies run by Robert C. Morgan was one of the fastest-growing apartment owners in Western New York. The Morgan companies had a stake in four out of every 10 new apartments under construction or planned around Buffalo. Now, with two executives pleading guilty to federal charges and another under indictment, the once-rapidly growi…

Business

The No. 2 executive at Rochester-based Morgan Management and Morgan Communities pleaded guilty Monday to federal fraud charges for artificially inflating insurance costs for damages on Morgan properties. And he blamed his boss – Robert C. Morgan – for making him do it. Scott W. Cresswell, 59, of Ionia, N.Y., admitted in federal court in Buffalo to conspiracy to commi…

Business

Rochester developer Robert C. Morgan's problems in Buffalo just got worse. The special loan servicer handling the $27.8 million commercial mortgage on the Raintree Island Apartments in the City of Tonawanda this week declared the loan in default. The firm cited "false or misleading" financial statements, claims or other documents that Morgan's company provided to jus…

Business

A lender for a Town of Tonawanda apartment complex whose owner is at the center of a federal mortgage fraud investigation wants to foreclose on the property after an auditor determined it also received false information. SteepRock Capital, in court documents, called loans for Raintree Island Apartments "toxic" because of the criminal case and accused the owners of provi…