The former chairman of the St. Louis County Planning Commission has been indicted on a charge of federal bank fraud, according to a press release from the Eastern District of Missouri division of the U.S. Attorney's Office.
Douglas Morgan, 65, from Chesterfield, could face a maximum penalty of up to 30 years in prison and/or fines up to $1,000,000 if convicted.
So, what was Morgan's alleged crime? The release explains:
According to the indictment, from 1999 through 2010 Morgan obtained a series of loans from Commercial Bank based upon his submission of false and deceptive Personal Financial Statements. Morgan obtained approximately 15 loans in his own name, while personally guaranteeing other loans in his children’s names. The Personal Financial Statements falsely represented that Morgan personally held millions of dollars in funds, assets, and real estate when he did not. Further, Morgan falsely represented that the Internal Revenue Service (IRS) had frozen and placed holds on purported trust funds valued in excess of ten million dollars when, in fact, he held no such trust funds, and the IRS had not, in fact, taken action against his funds. Outstanding balances on the falsely obtained loans is approximately $1,500,000.
Morgan was a member of several different arms of the St. Louis area community including serving as the long serving Chairman of the St. Louis County Planning Commission until his removal earlier this year. He was also 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 and as well as a member of the Civilian Board of the Major Case Squad.
According to the Associated Press, Morgan's attorney says he will plead not guilty at arraignment Monday.