West Virginia real estate developer sentenced for fraud

WHEELING, WV (LOOTPRESS) – A West Virginia real estate developer has been sentenced to five years in federal prison after defrauding investors out of more than $5 million.

According to U.S. Attorney William Ihlenfeld, Jeffrey James Morris, 37, the managing member of Roxby Development, LLC, received a 60-month sentence for his fraudulent scheme.

Morris secured funding to develop properties in Wheeling, including the Scottish Rite Cathedral, the McClure House Hotel, and the Mount Carmel Monastery.

In court, it was revealed that he misled investors about how their money would be used, submitted forged documents, and falsely claimed to have bank financing lined up.

Instead of making improvements to the properties, he engaged in Ponzi-style payments, using new investors’ money to pay previous ones.

“Jeffrey Morris preyed upon his investors, his employees, and upon the hope of Wheeling residents who believed that he was leading a downtown renaissance,” Ihlenfeld said. “Morris was a master manipulator who left a trail of broken promises in his wake.”

The court found that his actions caused significant financial hardship to several investors, including a retired couple who lost their entire life savings.

Morris, who pleaded guilty to one count of wire fraud and one count of tax fraud, is also required to pay nearly $5 million in restitution to investors, along with over $526,000 in taxes, penalties, and interest to the IRS.

He is set to report to prison on October 28, 2024, with the facility to be determined by the Bureau of Prisons.

The case was prosecuted by United States Attorney Ihlenfeld and Assistant U.S. Attorney Jarod Douglas, and it was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation division.