Former real estate agent Bert Whalen facing new fraud allegations by Attorney General
Whalen was the subject of an IndyStar investigation in 2018 and pleaded guilty to federal fraud charges in 2022. Former real estate agent and property manager Bert Whalen, known for his fraudulent practices, is being sued by Indiana Attorney General Todd Rokita for continuing defrauding real estate investors despite lacking a real estate broker license and hiding prior convictions. The lawsuit was filed on May 30 and comes two days before Whaleen is scheduled to be sentenced on a charge of conspiracy to commit wire fraud in a New Jersey federal court, which carries a maximum potential sentence of 20 years in prison and a fine of up to $250,000. Whalan and his former partners were previously accused of violating Indiana's deceptive sales and home loan acts in real estate deals involving over 150 properties in Marion County.
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An Indianapolis property manager and real estate flipper who was the subject of an IndyStar investigation in 2018 and pleaded guilty to federal fraud charges in 2022 is being sued by Indiana Attorney General Todd Rokita for allegedly continuing to defraud real estate investors.
The lawsuit filed May 30 alleges Herbert Whalen "continued to engage in the management of property for investors despite lacking a real estate broker license, as required by law, and hiding prior convictions," according to a statement from Rokita's office.
The announcement comes two days before Whalen is scheduled to be sentenced in a New Jersey federal court on a charge of conspiracy to commit wire fraud, a felony which carries a maximum potential sentence of 20 years in prison and a fine of up to $250,000 ― or twice the gross loss or gain caused by the offense, whichever is more.
Whalen pleaded guilty to the fraud charge in 2022.
John Tompkins, who represented Whalen in the New Jersey case, did not immediately respond for a request for comment.
Whalen, according to the AG's statement, continued illegal activities "following a guilty plea relating to a 2018 conspiracy to defraud real estate investors in the Oceanpointe Investments scheme ... using a series of LLCs and the fictitious name 'Herb Francis.'" Also named are several limited liability corporations with ties to Whalen.
“Our office has made it clear that when you break the law, we will hold you accountable,” Rokita said in the statement. “Real estate investors and tenants should be able to trust that their property managers have the knowledge and skills necessary to protect their investments and their homes.”
Whalen and one of his former partners, former "Fox & Friends Weekend" host Clayton Morris, were accused in 2020 by then-Attorney General Curtis Hill of violating Indiana's deceptive sales and home loan acts in real estate deals involving more than 150 properties in Marion County. The status of that case remains unclear. Rokita's office did not immediately respond to a request for an update on the earlier case.
Rokita's statement laid out Whalen's alleged new misconduct ― much of it similar to what was reported by IndyStar in 2018 and 2019 ― that prompted the latest lawsuit: "The 2018 guilty plea followed Whalen’s perpetrating of a scheme to obtain money from victim real estate investors by misrepresenting and concealing the poor condition of properties he managed as owner of a company called Oceanpointe. As part of the scam, Whalen arranged for investors to purchase dilapidated properties with the promise that after repairs and rehabilitations were completed, and tenants rented the properties, investors would receive copies of the leases and begin to receive rent payments as their return on investment.
"In reality, many Oceanpointe properties were not repaired and rehabilitated, and were not ready for occupancy. To conceal this fact from victim investors, Whalen and others directed Oceanpointe employees to draft fake leases, making it appear to investors that Oceanpointe properties were rented when, in fact, the properties remained vacant."
Whalen allegedly used a fake name, according to the lawsuit, "to conceal his identity and utilized various LLCs to provide property management services. None of the entities created by Whalen and his recently departed wife Natalie Bastin maintain broker licenses." Bastin reportedly died in December.
Rokita has asked for a jury trial to cover the "costs of prosecution, and other damages against the defendants for multiple violations of the Home Loan Practices Act."
The AG's statement touted the work of his staff, including Deputy Attorney General Chase Haller, Section Chief for the Homeowner Protection Unit, for work on the case.
This article originally appeared on Indianapolis Star: Bert Whalen facing new real estate fraud allegations from AG's office
Konular: Real Estate, Fraud, Corruption