Former county planning chairman faces bank fraud charge

Former county Planning Commission Chairman Douglas Morgan of Chesterfield recently was indicted on a bank fraud charge involving a series of loans obtained through Commercial Bank of St. Louis, according to the U.S. attorney’s office.

Morgan was indicted April 22 by a federal grand jury on one felony count of bank fraud.

Morgan, the long-serving chairman of the county Planning Commission until his removal earlier this year, was a shareholder and member of the Advisory Board for Commercial Bank, a Board Member of Missouri Employers Mutual, the state’s worker’s compensation insurer, as well as a member of the Civilian Board of the Major Case Squad.

From 1999 through 2010 Morgan obtained a series of loans from Commercial Bank based upon his submission of false and deceptive personal financial statements, according to the indictment.

Morgan obtained roughly 15 loans in his own name, while personally guaranteeing other loans in his children’s names, the indictment stated. The personal financial statements falsely represented that Morgan personally held millions of dollars in funds, assets and real estate when he did not, according to the indictment.

Further, Morgan falsely represented that the Internal Revenue Service had frozen and placed holds on purported trust funds valued in excess of $10 million when, in fact, he held no such trust funds, and the IRS had not, in fact, taken action against his funds, the indictment stated. Outstanding balances on the falsely obtained loans is approximately $1.5 million.

If convicted, the count of bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1million.

The case was investigated by the FBI. Assistant U.S. Attorney Hal Goldsmith is handling the case for the federal government.