B
ert Whalen, a notorious real estate scammer from Indianapolis, is set to face sentencing on February 11 in federal court in New Jersey. This marks the end of a five-year ordeal for investors who lost tens of thousands of dollars due to his deceitful schemes. Daryl Randall, one such investor, was shocked to spot Whalen partying at a Carmel bar in 2023, two years after he pleaded guilty to wire fraud conspiracy.
Whalen's crimes involved selling over 700 dilapidated homes from 2017 to 2019, promising investors that he would fix them up and rent them out. However, many of these properties were left uninhabitable, with issues like sewage-filled basements, lead exposure, and collapsing ceilings. Whalen's business partner, Clayton Morris, a former Fox & Friends host, was instrumental in marketing these properties to novice investors through his YouTube channel.
Morris has denied any wrongdoing, but several investors have accused him of running a Ponzi scheme alongside Whalen. Despite Whalen's conviction, he remains free, and his victims are growing increasingly frustrated with the delays in sentencing. The latest delay came last week, citing a new complaint from Indiana Attorney General Todd Rokita alleging that Whalen continued to scam investors while awaiting sentencing.
Whalen has been accused of using a fake identity, "Herb Francis," to solicit new investors through limited liability companies. He also failed to fix up properties as promised, leaving tenants in deplorable conditions. One Oregon-based investor lost over $16,000 due to Whalen's schemes.
The delays in sentencing have raised eyebrows among legal experts, with some speculating that Whalen may be cooperating with investigators or seeking a cooperation deal. However, the U.S. Attorney's Office in New Jersey has declined to comment on the status of any investigation.
Clayton Morris, meanwhile, has continued to operate his real estate investment company, Morris Invest, despite facing allegations of running a Ponzi scheme. He has started new YouTube shows and channels, including one that promotes conspiracy theories and misleading information about COVID-19 vaccines and the war in Ukraine. Morris and his family have recently returned to the United States after five years abroad.
Investors like Brian Freeman are still seeking justice and compensation for their losses. "The investors have been without their money for six years now," he said. "You've got one guy who pleaded guilty and another guy benefiting from the scam with no charges brought. It just blows my mind. How is that possible?"
