Another Morgan Management Employee Pleads Guilty For His Role In Multi-Million Dollar Fraud Scheme
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Scott Cresswell, 52, Ionia, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit wire fraud. The charge carries a maximum penalty of 20 years in prison and a $5,994,639.86 fine.
Assistant U.S. Attorneys John D. Fabian and Douglas A.C. Penrose, who are handling the case, stated that between March 2017 and April 2018, the defendant was the Chief Operating Officer for Morgan Management, LLC. During that time, Cresswell conspired with others, under the direction of Robert Morgan and others, fraudulently to obtain insurance policy proceeds for repairs on properties managed by Morgan Management, LLC.
On March 27, 2017, Cresswell received an executed copy of a $2,500,000 contract for the cost of repairs at the Summerwood Apartments in Merrillville, Indiana. However, in May 2017, the defendant or other members of the conspiracy caused a false and inflated contract totaling $3,236,519, a false invoice, and a false and inflated lien waiver for repairs at the Summerwood Apartments to be sent to an insurer.
Similarly, from March to May 2017, Cresswell conspired with others to present false and inflated contracts and invoices to insurers in connection with repairs at the Eden Square Apartments in Cranberry Township, Pennsylvania. Despite being aware that repairs at the property were being completed for $174,999, the defendant or others sent inflated documents to insurers reflecting repair costs of $263,013.57.
Read more: https://www.justice.gov/usao-wdny/pr/another-morgan-management-employee-pleads-guilty-his-role-multi-million-dollar-fraud