The nephew of a prominent local developer appeared in federal court Friday, where he accepted a plea deal for conspiracy to commit bank fraud.

Kevin Morgan is the nephew of developer Bob Morgan. Earlier this year, he pleaded not guilty to charges of fraudulently obtaining over $167 million worth of loans. 

As part of the deal, Kevin Morgan says the fraud was under the direction of his uncle Bob.

“Kevin Morgan didn’t run the business," Morgan's attorney, Matt Brown, said. "His actions, criminal- we’re not backing way from that at all- he knew what he was doing, but he didn’t come up with the idea on his own.”

By pleading guilty, Kevin faces a maximum penalty of five years in prison and a $250,000 fine.

The 62-page indictment also charged Bob’s son Todd and two others.

Bob Morgan himself has not been charged with a crime but his attorney John Speranza denies the allegation that his client directed the fraud.

“That’s Kevin Morgan’s statement. Our client maintains his innocence," Speranza said. "We really had nothing to do with Kevin Morgan or his plea.”

Kevin was employed as a vice president at Morgan Management, LLC, a real estate management company that managed more than 100-multi-family properties. According to court documents, "Kevin and his co-defendants provided false information to financial institutions and government sponsored enterprises that overstates incomes of properties managed by Morgan Management."