(Phoenix, Ariz. – August 19, 2005) Attorney General Terry Goddard today announced the indictment of Allan K. Morgal, 46, on one count Fraudulent Schemes and Artifices, two counts Theft and one count of Money Laundering.
Morgal, of Scottsdale, was indicted by the State Grand Jury on August 16. He is accused of convincing a 67-year-old retired Scottsdale man to invest more than $300,000 in an import business venture. The business would import specialty pottery items from Guadalajara, Mexico. The victim was shown documents, photos and given verbal assurances about the past and future success of the business venture.
The Attorney General’s investigation revealed that between December 2003 and August 2004, the victim sent money directly to the pottery makers in Mexico. Once the money was received, Morgal convinced the manufacturer that the funds were his, and he allegedly facilitated the transfer of more than $160,000 to bank accounts and entities in Arizona for his benefit without the knowledge or consent of the victim.
The investigation also established that Morgal “hand-carried” large amounts of the victim’s money back into the U.S. in cash during visits to Mexico during the same time period. The amounts carried back in cash were just below the $10,000 limit which requires formal declaration with U.S. Customs.
Morgal was arrested August 16 and is currently being held on $270,000 bond at the Maricopa County Jail. He will be arraigned in Maricopa County Superior Court on August 24. Assistant Attorney General Todd Lawson is prosecuting this case.