Texan gets 27 years, must repay $25M for fraud

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Associated Press

Posted on February 26, 2013 at 10:32 AM

HOUSTON (AP) — A federal judge has sentenced a Houston-area man to 27 years in prison and ordered him to repay $25 million in a condominium mortgage scam.

Patrick Cody Morgan of Alvin was sentenced Monday in Houston. A jury in October convicted Morgan of conspiracy to commit bank fraud and nine counts of bank fraud.

Morgan represented himself in the scheme that prosecutors say involved about 100 properties and government-insured loans topping $39 million.

Prosecutors say co-defendants would recruit people with good credit to seek loans, then would fail to repay the money and the condos fell into foreclosure. Investigators say the fraud ran from mid-2004 through September 2007.

Five co-defendants earlier pleaded guilty. Four await sentencing while the fifth was sentenced earlier this month to five years in prison.

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