Former ‘Fox & Friends’ host used his popularity in real estate scheme, Indiana AG says
A former “Fox & Friends” host and his ex-partner are accused in a real estate scheme that defrauded would-be investors, the Indiana attorney general says.
Indiana Attorney General Curtis Hill sued former TV host Clayton Morris, Bert Whalen and their associated companies last week.
Morris, who last worked for Fox News in 2017, lured customers using his popularity to purchase rental properties in the Indianapolis area he promised to be ready to rent for “passive income,” according to a news release. In reality, the investors bought properties that often were dilapidated and uninhabitable, officials say. The defendants also are accused of failing to provide services that they promised.
“Dozens of consumers were promised a path to financial flourishing, but that promise was broken,” Hill said in the news release. “These defendants raked in money as they knowingly caused eager home-buyers to suffer. We will hold them accountable for their unconscionable and predatory behavior.”
Morris did not immediately respond to a request for comment by McClatchy News sent to his website.
The scheme involved over 150 properties and 94 consumers, officials said. Hill’s office said many are trying to “salvage any remaining value” from the properties or sold them at a loss.
Last year, Whalen was indicted on wire fraud charges in the case. Federal prosecutors accused him and unnamed co-conspirators of creating fake leases and misrepresenting the poor conditions of properties to defraud investors.
Whalen’s attorney denied the accusations, The New York Times reported.
Morris, who wasn’t charged with a crime, has said he was a victim of Whalen’s deception and simply marketed the properties, The Indianapolis Star reported.
However, the attorney’s general office called Morris an “integral” part of the scheme who used his company Morris Invest, YouTube channel and podcast to attract investors.
The Indianapolis Star published an investigative series on Morris and Whalen in 2019.
The lawsuit filed by the Indiana attorney general seeks restitution for the victims.
This story was originally published May 6, 2020 at 5:44 PM with the headline "Former ‘Fox & Friends’ host used his popularity in real estate scheme, Indiana AG says."