Indianapolis, IN – Herbert “Bert” Whalen, 50, was sentenced to 41 months in prison on Tuesday after pleading guilty to conspiracy to commit wire fraud in connection with a multi-million-dollar Ponzi scheme that defrauded investors across the country. The sentence, handed down in federal court in New Jersey by U.S. District Court Judge Madeline Cox Arleo, also includes a $5,000 fine and three years of supervised release following his prison term. Whalen will remain free on bond until ordered to surrender.
Whalen’s fraudulent activities involved selling dilapidated homes to out-of-state investors with the promise of renovating and renting them out. However, many of the homes were left in poor condition, and Whalen sent fake leases and partial rent payments to deceive investors. His scheme primarily involved homes in Indianapolis, many of which were in uninhabitable or severely neglected conditions.
Whalen, who operated with his former business partner Clayton Morris, a former Fox & Friends host, exploited investors under the guise of selling “turnkey” properties. The investigation by IndyStar revealed numerous victims, including an investor who purchased a property that had burned down prior to closing. Despite this, Whalen and Morris continued to deceive their clients, leading to significant financial losses and complaints of living conditions like rat infestations and collapsed ceilings for tenants.
Morris, who has not been charged with any crime, left the country in 2019, citing business issues. He later returned to the U.S. in 2023. Despite his absence, Whalen’s case proceeded with a federal indictment in 2019, and the Indiana Attorney General’s office filed complaints against both men for violating state home loan and deceptive sales acts.
Whalen’s sentencing was a long-awaited conclusion to a case that dragged on for years, frustrating many investors. Whalen had continued to operate fraudulently while awaiting sentencing, using an alias to solicit new investments through new LLCs.
While investors like Brian Freeman expressed relief that Whalen will serve time in prison, they remain frustrated by the lack of charges against Morris, who they believe was complicit in the fraud. The investigation is ongoing, and the Indiana Attorney General’s office has vowed to continue pursuing the case against all involved.
For many victims, Whalen’s conviction represents a long-awaited measure of justice, though many still question why Morris has yet to face any consequences.
