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Played last night against a Mordrak list, his ghost knights had a bother banner and halberds, but i just read that Ghost knights come with basic equipment and can not take upgrades...

Was my oppoent wrong/cheating? Can you make any mods at all to Mordraks retinue?

The ones that he spawns have basic gear. However they do have a unit of them that can be created in the army list in back, and if he created a squad pregame they are allowed the following; Halberds, Hammers, Falchions, and Brotherhood Banners. So it's a legal squad.

Yep, entirely legal. Ghost Knights that appear mid game are basic termies only