Developer Robert Morgan is facing legal trouble from two directions.
He was indicted yesterday on dozens of federal charges for allegedly inflating the value of his properties to financial institutions in order to obtain mortgages. The indictment also names his son, Todd, a former Morgan Management CFO, and a mortgage broker.
Meantime, the Securities and Exchange Commission has filed a lawsuit against Morgan, and others for operating what looked like a Ponzi scheme. They allegedly used funds from investors in 17 states to pay other investors and hide the mortgage frauds.