A prominent local developer is speaking out about a federal investigation into his Rochester-area business.
Morgan Communities CEO Robert Morgan wasn't speaking on Monday when federal agents raided his offices in Pittsford. However, he issued a statement late Wednesday saying he is cooperating with a federal inquiry.
Morgan says the investigation has to do with federally backed loans placed to several developers through a specific mortgage broker. News reports have indicated some of those loans may have inflated the value of certain properties - and that Morgan's nephew and son may face charges of bank and wire fraud.
Morgan says his company has been and continues to be current on all its loan obligations - and that he looks forward to the conclusion of the inquiry.
Morgan's full statement is below:
Morgan Communities continues to cooperate with a federal inquiry that we believe is related to federally backed loans placed to several developers through a specific mortgage broker or brokers.
We have been and continue to be current on all loan obligations.
Morgan Communities has nearly 40 years in the commercial and residential real estate business. Our developments drive revitalization, promote and preserve the historical and cultural roots of our cities, and make a difference in the communities we serve.
We look forward to the conclusion of this inquiry.
- Robert Morgan, CEO, Morgan Communities
According to the Morgan Communities website, he manages a real estate portfolio primarily in the Northeast "including over 33,000 units in multi-family property as well as a significant assortment of manufactured housing communities and commercial, retail, office, medical office, self-storage and hotel properties. Morgan Management, LLC also has a considerable number of new development sites under various stages of construction." That includes Green Lake, Idywood Resort, Maplewood Estates, Paradise Lane, Park Place and Raintree Island apartments in the Buffalo area.