Erie County Legislator Ted Morton admitted Monday that he previously misstated the amount of debt he owed to creditors after he was elected to office two years ago, piling onto an already troubled financial history for the Republican lawmaker.
The former financial planner, who has since sold his business and Cheektowaga home to pay off outstanding debts, is running for re-election in a tight race for the 8th District, which could decide whether the Legislature stays in Republican hands or reverts to Democratic control.
Morton said that on his 2013 financial disclosure form, he mistakenly said he owed no more than $25,000 in outstanding debts to a single creditor when, in fact, he fact he owed about a total of $90,000 in debts to three different creditors.
“I didn’t realize until I got a copy of this a few days ago that I had made that mistake,” Morton said, adding, “All of the debts that I had from my practice have all been paid off as of today. Every penny, plus interest, has been repaid to everybody.”
He further described his past 2˝ years as “horrendous” and said he’s worked hard to meet all his obligations and put the past behind him.
Morton ran afoul of industry rules by borrowing about $315,000 from seven of his clients, with their agreement, between 2009 and 2012. This was considered an ethical breach by the Financial Industry Regulatory Agency. In August 2013, the agency fined Morton $5,000 and suspended him from acting as a financial planner for six months. Morton also was fired as a contractor with LPL Financial.
County Democratic leaders looking for an edge over Morton in this year’s election examined redacted financial disclosure forms from the Erie County Board of Ethics and said his list of creditors – he listed only one in 2013 – defied belief and warranted an investigation.
In explaining how he paid off his creditors, many of whom were family members and friends, Morton said he never owed $315,000 all at once, but rather paid off some older debts while acquiring new ones. Once his license to work as a financial planner was restored in March 2014, he sold off his list of clients and used the proceeds to help pay off his remaining creditors, he said. His wife also worked until last year and helped him pay debts.
When he filled out his 2013 financial disclosure form, he said, he misunderstood the instructions and wrote down the single debt he had remaining at the time he filled out the paperwork instead of all the debts he had for the entire year. He further said his 2014 financial disclosure form, which also listed only one remaining creditor, is accurate. That debt was paid off in monthly installments and cleared as of September, he said.
Though Morton’s campaign bio describes him as a “self-employed financial planner,” his sole job is currently that of county legislator. He expects to close on the sale of his home in November and has moved into a mobile home to save money and pay off the last of his personal debts. He and his wife have made hard choices, paid debts, cut living expenses and are current on all personal bills, he said.
Morton faces Democratic challenger Debra Liegl for the 8th District seat, which includes Cheektowaga, Lancaster and Alden.
Reply With QuoteOriginally Posted by Breezy
- maybe the Supervisor likes them little fu fu dogs 
- I do - my Mom has two !
