Lender Seeks Foreclosure Against Morgan Apartments in Tonawanda
One of the nation's largest commercial banks is now trying to foreclose on two of Robert C. Morgan's apartment complexes in upstate New York – including the Raintree Island Apartments in the Town of Tonawanda – even as a federal grand jury indicted Morgan and his finance director on mortgage and insurance fraud charges.
U.S. Bank, a subsidiary of Minneapolis-based U.S. Bancorp, filed foreclosure papers in State Supreme Court in Erie County on Thursday, seeking to seize the Raintree complex just off Colvin Boulevard because it said Morgan committed fraud in obtaining the original $27.8 million loan from UBS Real Estate Securities in 2013.
Similar papers were also filed Wednesday in state court in Onondaga County, targeting the Brookwood on the Green apartments in the Syracuse suburb of Liverpool because of default on a $16 million loan from Arbor Commercial Mortgage in February 2014.
The lawsuits also cite Morgan's failure to maintain a cash management account at an "eligible" bank – for depositing tenant rents as required by the loan agreement – because he's been "tainted" by the federal fraud investigation and subsequent indictments against his son, his nephew and his chief operating officer.
Read more: https://buffalonews.com/2019/05/24/lender-seeks-foreclosure-against-morgans-raintree-island-apartments/
Earlier threads:
Another Morgan Management Employee Pleads Guilty For His Role In Multi-Million Dollar Fraud Scheme
https://www.democraticunderground.com/106824660
Robert Morgan, Three Others Indicted In Multi-Million Dollar Mortgage Fraud Scheme
https://www.democraticunderground.com/106824674