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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of New York

FOR IMMEDIATE RELEASE
Thursday, July 21, 2022

Two Morgan Management Employees Sentenced For Bank Larceny

CONTACT: Barbara Burns   
PHONE:       (716) 843-5817 
FAX #:          (716) 551-3051  

BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Frank Giacobbe and Michael Tremiti, who were convicted of bank larceny, were sentenced by Chief U.S. District Judge Elizabeth A. Wolford. Giacobbe was sentenced to serve one year probation and ordered to pay a $500 fine, while Tremiti was sentenced to time served and a $500 fine. 

Assistant U.S. Attorney Evan Glaberson, who handled the case, stated that defendant Tremiti worked for Morgan Management, LLC., a real estate management company that managed over 100 multi-family properties, as the Vice President of Finance. Tremiti admitted submitting false documents to the ESL Federal Credit Union to obtain a construction loan. The loan was used to construct Ellison Heights Apartments, a multi-family residential complex in Penfield, NY.

Defendant Giacobbe owned and operated Aurora Capital Advisors, LLC, which brokered loans for borrowers seeking financing for multi-family properties such as apartment complexes. Through Aurora, Giacobbe worked as a mortgage broker on behalf of Morgan Management. Morgan Ellicott Apartments, LLC, was a limited liability company created to purchase a multi-family residential apartment complex located at 221 and 291 William Street in Buffalo, NY, known as Morgan Ellicott Apartments. Morgan Ellicott sought to obtain a loan from Evans Bank. Giacobbe, working with others, submitted documents and information to Evans Bank that overstated the contract purchase price of Morgan Ellicott, falsely represented the obligations associated with Morgan Ellicott, and misrepresented the actual purchase price of the property. Giacobbe also made misrepresentations designed to conceal from Evans Bank that he and others were not using the loan proceeds to purchase or maintain the property as required by the loan agreement.

The sentencings are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent-in-Charge Robert Manchak, Northeast Region.  

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Topic(s): 
Financial Fraud
Updated July 21, 2022