(Phoenix, Ariz. – Nov. 30, 2006) Attorney General Terry Goddard announced that Allan K. Morgal, 47, of Scottsdale, was sentenced today to 22 years in prison after being convicted of fraud, theft and money laundering.
Morgal convinced a 67-year-old retired Scottsdale man to invest more than $300,000 in an import business venture. The victim was told the business would import specialty pottery items from Guadalajara, Mexico.
Between December 2003 and August 2004, the victim sent money directly to the pottery makers in Mexico. When the company in Mexico received the money, Morgal convinced the manufacturer that the funds were his and 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 Attorney General’s investigation also established that Morgal carried large amounts of the victim’s money in cash back into the U.S. during the same time period. The amounts carried back were just below the $10,000 limit that requires formal declaration with U.S. Customs.
Morgal was convicted on one count of fraud, two counts of theft and one count of money laundering. Maricopa County Superior Court Judge Roland J. Steinle sentenced Morgal to 22 years for fraud, 15.75 years for each theft count and 11.25 years for money laundering. The sentences will run concurrently. Judge Steinle took the request for more than $200,000 in restitution to the victim under advisement.
Assistant Attorney General Todd Lawson prosecuted this case. The investigation was handled by the Special Investigations Section of the Attorney General’s Office.