Fraud alleged in Morgan Financial's fall.

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Morgan Financial Group Inc

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Fraud alleged in Morgan Financial's fall.

FBI Investigating Former Employees; Others Implicate Owner in Schemes

The end has come for Morgan Financial Group Inc. of Little Rock, Chuck Morgan's unusual, lawsuit-plagued "factoring" company that made, cash-flow loans to businesses by buying accounts receivable for a fee. But its death, Arkansas Business has learned, might have more to do with fraud than legal debts.

The FBI says it is investigating allegations from Morgan's camp that car dealer Timothy Gibbons, who has a previous criminal conviction for fraud, conspired with former Morgan employees Bill DeBusk Jr. and Brian Suggs to defraud the company of nearly $1 million. Mainly, Morgan claims in an as-of-yet unreported legal document, the frauds were perpetrated with fake invoices that the company purchased as collateral for short-term fa...

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