Landlord to Pay $63M in Alleged Ponzi Scheme

A court has approved the distribution of more than $63 million to investors in New York real estate developer Robert Morgan’s allegedly fraudulent real estate investment scheme, the Securities and Exchange Commission has announced.

The SEC alleged in a complaint last May that Morgan and two of his businesses, Morgan Mezzanine Fund Manager LLC and Morgan Acquisitions LLC, told more than 200 retail investors their money would be used to finance multifamily property improvements but instead used it to pay back earlier investors.

The SEC’s investigation is ongoing regarding Morgan, who voluntarily liquidated certain assets to generate funds for distribution to harmed investors.

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