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South Town Plaza loses another large tenant

May 24, 2019 -- While much recent attention has been focused on the future of the neighboring The Marketplace Mall in Henrietta, South Town Plaza finds itself at a critical juncture following the announcement that it is losing another tenant.

Just months after Burlington exited, the West Henrietta Road plaza is about to lose OfficeMax this month. A corporate representative told the Democrat and Chronicle the OfficeMax location will close July 20. A liquidation sale has already begun.

South Town Plaza, built in 1955, will be approximately one-third vacant after OfficeMax and Payless ShoeSource, which is also in the midst of a liquidation sale, are gone. The shpopping center has nearly half-a-million square feet of retail space.

Burlington reopened last month in the former Toys R Us space on Hylan Drive, vacating approximately 72,000 square feet at South Town, which was purchased in November by Namdar Realty Group from Long Island.

OfficeMax also recently closed its Greece store in Elmridge Plaza, another shopping center that is a shell of its former self.

Prosecutors: Engineer falsified Space X component reports

May 22, 2019 -- A local engineer is accused of falsifying inspection reports for space parts purchased by Space X for its spaceships, an act that contributed to the shuttering of the company where he worked.

Prosecutors say James Smalley of Penn Yan, worked as a quality assurance engineer for PMI Industries in Gates, which provided machining services for aerospace partsused for Space X projects, including for the company's Falcon launch family.

An audit early last year determined Smalley had falsified at least 38 inspection reports and testing certifications for critical parts for Falcon 9 and Falcon Heavy. In court documents, prosecutors said Smalley admitted to copying the signatures of other inspectors onto reports to expidite shipping.

SpaceX subsequently stopped buying components from PMI, which put the company out of business.

Smalley faces up to 10 years in prison if convicted.

Robert Morgan indicted in federal court

May 22, 2019 -- Morgan Management CEO Robert Morgan has been indicted on a plethora of charges in federal court. The 114-count superseding indictment accuses the commercial developer of entering into a conspiracy to use false information to obtain financing for various apartment units in the Rochester area.

If convicted, Morgan and other defendents could face a maximum penalty of 30 years in prison and multi-million dollar fines.

Morgan and Michael Tremiti entered not guilty pleas to conspiracy and wire fraud. It is alleged Robert and Kevin Morgan, as well as Tremiti, falsified financial data to meet debt service coverage ratios of lending agencies.

Robert Morgan is also accused of trying to defraud insurance companies by using false information to inflate damages, including losses at 34 locations from the windstorm of March 2017.

The Securities and Exchange Commission is also investigating the Morgan Management holdings.

Robert Morgan implicated during court plea

May 13, 2019 -- The former COO of Morgan Management pleaded guilty to conspiracy to commit wire fraud, implicating real estate developer Robert Morgan in the alleged scheme that may have cost insurers nearly $3 million.

Scott Cresswell, 52, said in federal court in Buffalo that Morgan directed him and others to be part of a conspiracy that inflated insurance costs for damages to Morgan Management properties.

The plea stems from an expanding investigation into the dealings of Morgan, a major player in downtown Rochester development. Investigators say some of Morgan's vast holdings sit on a foundation of $500 million in loans and other benefits obtained on fraudulent information.

Cresswell led a buyout of the firm's management arm last year and is now president and CEO of Grand Atlas Residential Realty Trust. He has agreed to cooperate with authorities in their investigation of Morgan Management. Sentencing guidelines recommend a prison sentence of 27 to 33 months for Cresswell, a term that prosecutors may seek to reduce.

Wire fraud charges against Cresswell stem from alleged insurance scams between March 2017 and April 2018, in New York, Indiana and Pennsylvania. Authorities suspect Morgan entities skimmed money from payouts meant to repair roof damage to Rochester-area properties after the March 2017 wind storm.

Case against 5Linx founders winds down

May 9, 2019 -- The last of the three 5Linx founders who defrauded investors and filed false tax returns was sentenced to seven months in prison and 160 hours of community service by a U.S. District Court judge.

Jason Guck, 43, faced a prison term of nearly five years under federal sentencing recommendations, but Judge David Larimer said he thought the guidelines were excessive and that Guck had not been as significantly involved in 5Linx as two co-defendants handed 14-month sentences.

Guck must pay the government almost $780,000 as a result of falsified tax returns.

Guck, Craig Jerabeck, and Jeb Tyler admitted last year to stealing $2.3 million from 5Linx's investors.

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	More from early 2019 South Town Plaza loses another large tenant May 24, 2019 -- While much recent attention has been focused on the future of the neighboring The Marketplace Mall in Henrietta, South Town Plaza finds itself at a critical juncture following the announcement that it is losing another tenant. Just months after Burlington exited, the West Henrietta Road plaza is about to lose OfficeMax this month. A corporate representative told the Democrat and Chronicle the OfficeMax location will close July 20. A liquidation sale has already begun. South Town Plaza, built in 1955, will be approximately one-third vacant after OfficeMax and Payless ShoeSource, which is also in the midst of a liquidation sale, are gone. The shpopping center has nearly half-a-million square feet of retail space. Burlington reopened last month in the former Toys R Us space on Hylan Drive, vacating approximately 72,000 square feet at South Town, which was purchased in November by Namdar Realty Group from Long Island. OfficeMax also recently closed its Greece store in Elmridge Plaza, another shopping center that is a shell of its former self. Prosecutors: Engineer falsified Space X component reports May 22, 2019 -- A local engineer is accused of falsifying inspection reports for space parts purchased by Space X for its spaceships, an act that contributed to the shuttering of the company where he worked. Prosecutors say James Smalley of Penn Yan, worked as a quality assurance engineer for PMI Industries in Gates, which provided machining services for aerospace partsused for Space X projects, including for the company's Falcon launch family. An audit early last year determined Smalley had falsified at least 38 inspection reports and testing certifications for critical parts for Falcon 9 and Falcon Heavy. In court documents, prosecutors said Smalley admitted to copying the signatures of other inspectors onto reports to expidite shipping. SpaceX subsequently stopped buying components from PMI, which put the company out of business. Smalley faces up to 10 years in prison if convicted. Robert Morgan indicted in federal court May 22, 2019 -- Morgan Management CEO Robert Morgan has been indicted on a plethora of charges in federal court. The 114-count superseding indictment accuses the commercial developer of entering into a conspiracy to use false information to obtain financing for various apartment units in the Rochester area. If convicted, Morgan and other defendents could face a maximum penalty of 30 years in prison and multi-million dollar fines. Morgan and Michael Tremiti entered not guilty pleas to conspiracy and wire fraud. It is alleged Robert and Kevin Morgan, as well as Tremiti, falsified financial data to meet debt service coverage ratios of lending agencies. Robert Morgan is also accused of trying to defraud insurance companies by using false information to inflate damages, including losses at 34 locations from the windstorm of March 2017. The Securities and Exchange Commission is also investigating the Morgan Management holdings. Robert Morgan implicated during court plea May 13, 2019 -- The former COO of Morgan Management pleaded guilty to conspiracy to commit wire fraud, implicating real estate developer Robert Morgan in the alleged scheme that may have cost insurers nearly $3 million. Scott Cresswell, 52, said in federal court in Buffalo that Morgan directed him and others to be part of a conspiracy that inflated insurance costs for damages to Morgan Management properties. The plea stems from an expanding investigation into the dealings of Morgan, a major player in downtown Rochester development. Investigators say some of Morgan's vast holdings sit on a foundation of $500 million in loans and other benefits obtained on fraudulent information. Cresswell led a buyout of the firm's management arm last year and is now president and CEO of Grand Atlas Residential Realty Trust. He has agreed to cooperate with authorities in their investigation of Morgan Management. Sentencing guidelines recommend a prison sentence of 27 to 33 months for Cresswell, a term that prosecutors may seek to reduce. Wire fraud charges against Cresswell stem from alleged insurance scams between March 2017 and April 2018, in New York, Indiana and Pennsylvania. Authorities suspect Morgan entities skimmed money from payouts meant to repair roof damage to Rochester-area properties after the March 2017 wind storm. Case against 5Linx founders winds down May 9, 2019 -- The last of the three 5Linx founders who defrauded investors and filed false tax returns was sentenced to seven months in prison and 160 hours of community service by a U.S. District Court judge. Jason Guck, 43, faced a prison term of nearly five years under federal sentencing recommendations, but Judge David Larimer said he thought the guidelines were excessive and that Guck had not been as significantly involved in 5Linx as two co-defendants handed 14-month sentences. Guck must pay the government almost $780,000 as a result of falsified tax returns. Guck, Craig Jerabeck, and Jeb Tyler admitted last year to stealing $2.3 million from 5Linx's investors. [ LOOK BACK AT OLDER STORIES ]