R
eal estate con artist Herbert "Bert" Whalen has been sentenced to 41 months in prison for his role in a multi-million dollar Ponzi scheme that duped out-of-state investors into buying dilapidated Indianapolis homes. Whalen, 50, pleaded guilty nearly three years ago to conspiracy to commit wire fraud and was ordered to pay a $5,000 fine and serve three years on supervised release after completing his prison sentence.
Whalen's scheme involved selling run-down homes to investors with promises of renovation and rental income, but he often failed to make repairs and instead hid the poor condition of the properties. In some cases, he sent fake leases and rent checks to dupe investors into believing their properties were being rented out. Whalen's business partner, Clayton Morris, a former Fox & Friends host, has been the subject of multiple civil lawsuits but has not been charged with any crime.
Whalen's victims suffered greatly, including renters who lived in homes with sewage-filled basements, vermin infestations, and no heat. Several reported injuries from collapsing ceilings. Meanwhile, Whalen lived lavishly, owning a yacht in Florida and residing in a waterfront home in Geist once owned by former Indiana Gov. Mitch Daniels.
The government's investigation into Whalen's scheme was sparked by an IndyStar investigation that identified dozens of disgruntled investors. The case has been delayed multiple times, frustrating victims who felt justice had not been served. Whalen's sentencing represents the first time either he or Morris have faced penalties from authorities, although Morris has settled multiple civil lawsuits filed by investors.
Whalen's attorney said his client continues to accept responsibility for his offense and regrets taking part in the conspiracy. However, many investors feel that Whalen's more famous business partner should also be held accountable for their losses. "They both knew and were profiting off it," said Brian Freeman, a California investor who purchased a property from Whalen.
