Federal authorities say a Holladay man accused of defrauding one bank may have defrauded several other banks and businesses to the tune of millions of dollars.
Last March, federal prosecutors charged Shaun Gregory Morgan with bank fraud, alleging he gave a local attorney a bogus cashier's check to purchase stock in a company. The $535,000 was given to Zions Bank to be deposited in the attorney's trust account, but it bounced. Morgan then allegedly used money from another business deal to cover the $535,000 and received a 49 percent interest in the company.
Prosecutors say recent media reports of the incident have led to new leads and new alleged crimes.
"We have reason to believe that there are more victims out there, and we are interested in contacting them," said U.S. District Attorney for Utah spokeswoman Melodie Rydalch.
Morgan was recently the subject of a second indictment, which alleges he submitted several more forged checks while posing as an international banker.
According to the indictment, Morgan created several businesses: First Mutual Credit Corp., First Mutual Credit Bank, First Mutual Credit and Bank FMC First Mutual Credit Bank, among others. All businesses operated out of offices located in South Jordan.
Federal prosecutors said Morgan represented to people that he was an officer of First Mutual, a bank located in London. Morgan also reportedly created a Web site for First Mutual, which stated the business had locations in London, New York, Salt Lake City, Las Vegas, Wilmington and Los Angeles. The Web site listed several officers and directors, including Morgan as CEO.
Charges state Morgan would offer lines of credit to businesses in exchange for advanced fees. In January of this year, Morgan offered Global Wealth Partners a $13 million revolving line of credit. Morgan required the company to pledge more than $2.5 million in collateral from T-bills and bonds.
After informing Global Wealth Partners that he had to close the account "for compliance reasons," Morgan gave the company a $2 million cashier's check with a fake routing number. When the check failed to clear at Mountain America Credit Union, Morgan gave the company another cashier's check, which also bounced.
Around that same time, federal prosecutors say Morgan entered into agreements with several limited-liability companies to purchase their interest in rental properties. They say Morgan again used counterfeit cashier's checks and transferred title to the properties before the checks came back no good.2 comments on this story
In March of this year, charges state Morgan agreed to extend a $10 million line of credit to Birch Street Partners. As collateral, the company wired $625,000 into First Mutual's bank account. Prosecutors claim Morgan used $535,000 of that money to cover the bogus check he supplied in the Zions Bank case. He then also deposited $60,000 of the Birch Street money into his personal account.
Morgan is now charged with bank fraud, mail fraud and wire fraud. He has pleaded not guilty to the charges.
Last Wednesday a federal magistrate judge ordered Morgan to be held in federal custody pending the outcome of his case, finding him to be an "economic danger to the community."The FBI is asking anyone with knowledge about any transactions involving Morgan and First Mutual to contact the agency at 579-1400.