Man who fled
fraud trial touts
bright reputation

The court reluctantly revises
bail for a man arrested
in Missouri

---

By Debra Barayuga
Star-Bulletin

Is Doug Morgan, chief executive officer of MSC Group Ltd., a successful general contractor with clients throughout Japan, Hawaii and the mainland, and 20 years' experience in construction-defect litigation?

Or is Doug Morgan, as the state contends, a deadbeat parent overdue on child-support payments, an identity thief and a "pathological liar" who passes himself off as an attorney, drafting trusts for clients and stealing their money?

Two faces of Doug Morgan -- also known as Wendell Douglas Morgan, W. Morgan, D. Morgan or John W.D. Morgan -- emerged at a bail hearing yesterday in which the defense sought a reduction of bail or supervised release.

Circuit Judge Michael Town reduced bail yesterday to $50,000 from $100,000, saying he was doing so reluctantly and that Morgan's record was "troubling" but that the amount was "just and reasonable."

The court also ordered Morgan not to leave the state without permission and to turn over any driver's licenses he possessed under other Social Security numbers he has used in the past.

Morgan, 51, a former Honolulu resident, was returned to Hawaii recently after his arrest in Jackson, Mo., to face charges of second-degree theft that go back to May 1996.

He was indicted in 1999 on those three counts, including one for allegedly defrauding an 81-year-old of her savings and forcing her to sell her home. Trial is set for July 23.

After two years of searching for him, authorities arrested Morgan in Missouri after a credit organization received a letter from him threatening to sue.

Federal officials here also want Morgan for credit card fraud in which he allegedly applied and received a credit card using someone else's identity without his permission.

Jeff Arakaki, Morgan's attorney, argued yesterday that his client is not a flight risk nor a danger to society and is entitled to reasonable bail.

He also disputed the state's charges that his client is a scam artist or posed as a lawyer. He noted that Morgan's work history justifies his claim of 20 years' experience in defective-construction litigation.

While Morgan acknowledges he has two Social Security numbers, he has been consistent in using the original Social Security number he was first issued in high school, while using another number he later obtained in college for his driver's licenses, Arakaki noted.

Deputy Attorney General Rick Damerville argued that Morgan obtained various driver's licenses in Virginia, Hawaii, Oklahoma and California using two different Social Security numbers and dates of birth.

The offenses he is currently charged with allegedly occurred while he was still on probation for a Hawaii conviction in 1991 on three counts of first-degree theft and practicing law without a license.

In the 1991 case, he had posed as a lawyer and embezzled from many victims, including an elderly woman, the state said. Morgan was sentenced to five years' probation in that case.

The year before, Morgan had been convicted in Washington state for making false statements on a business loan application. He was sentenced to 10 months in jail and ordered to pay $38,000 in restitution.

The defense is expected to file a motion asking that Morgan be allowed to return to Missouri so he can continue to run his company and meet his business obligations.

Morgan also is expected to request that the three counts he faces be consolidated under one charge.