Bank files to foreclose 5 Rochester properties owned by Bob Morgan

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Morgan and his partner in Rugby Square, Buffalo’s Brett Fitzpatrick, formed a limited liability company that borrowed $5.56 million when it bought the complex, according to records in Onondaga County.

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Relatives of prominent real estate developer Robert Morgan took extraordinary steps to mislead inspectors and help inflate the value of properties owned by his company, federal authorities allege. They went so far as to doctor records and created the false impression that apartments were occupied by leaving shoes outside the door and radios playing inside, according to a 91-page FBI affidavit.

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The ESL Federal Credit Union has filed a motion to foreclose on a property owned by Morgan Management. Papers filed in court say the property is on Fairwood Drive off East River Road in Henrietta. ESL says it plans to foreclose on two liens against the property worth more than $17 million. The bank says Morgan Management defaulted on the payments.