Kevin and Todd Morgan, of Morgan Communities, are both accused of cooking the books to pull in $175 million in loans that they would not have qualified for otherwise.
Another top executive at Rochester's biggest development company, Morgan Communities, denies the charges against him.
Kevin Morgan pleaded not guilty to bank fraud at his arraignment in Buffalo on Tuesday.
His cousin, Todd Morgan, who also works for Morgan Communities was arraigned last week. Todd Morgan pleaded not guilty as well and has since been suspended without pay.
They are both accused of cooking the books to pull in $175 million in loans that they would not have qualified for otherwise.
The U.S Attorney's Office tells News10NBC that Kevin Morgan was released on $100,000 bond. He had to surrender his passport and his travel has been restricted to western New York.