Founder And CEO Of Property Management Company With Apartments In Pittsburgh Indicted

PITTSBURGH (KDKA) -- Federal investigators say Morgan Communities and Morgan Management along with the company's founder and CEO, Robert Morgan spent years defrauding banks and government agencies out of tens of millions of dollars.

Morgan is a western New York real estate developer recently indicted by the government.

Three other Company employees, including Morgan's son, had been indicted earlier.

In part, the government said they presented banks with fraudulent, inflated construction contracts that falsely reported contractors were being more than they were actually being paid.

Get Ralph Iannoti's full report here:

Morgan and the other executives provided false information to banks that overstated income inducing them to issue loans for greater values.

In addition to the Avalon Arms Apartments, Morgan has local properties in Cranberry, Coraopolis, Southpointe, Hopewell Township, the Waterfront, the City of Pittsburgh, Wexford and South Park.

Back in Avalon, a longtime resident of the building owned by Morgan's company reacted with surprise to news of the government's case against Morgan.

Sara Weigand told KDKA News, "I'm shocked, because of the money he's getting from us people here, from these eight stories that we have here. He should not have done all the bad stuff he's been doing. he's not taking care of the building, not at all."

Morgan has pleaded not guilty to the charges.

No trial date was set.