A West Virginia real estate developer was sentenced to five years in federal prison for defrauding investors out of more than $5 million.
Jeffrey James Morris, managing member of Roxby Development LLC, secured local and national funding to develop real estate in Wheeling, West Virginia. According to statements made in court, he acquired the Scottish Rite Cathedral, the McClure House Hotel, and the Mount Carmel Monastery.
However, Morris misrepresented how the money would be used, provided forged documents, lied about the prospects of securing tax increment financing, and falsely claimed to be on the verge of securing bank financing to repay investors. He made Ponzi-style payments that used one investor’s money to pay another, and he also lied to investors about having received approval for historic tax credits.
Morris, who previously pleaded guilty to one count of wire fraud and one count of tax fraud, was ordered to report to prison on Oct. 28. He must also pay $4.9 million to investors and roughly $520,000 in taxes, penalties, and interest to the Internal Revenue Service.
“Jeffrey Morris preyed upon his investors, his employees, and upon the hope of Wheeling residents who believed that he was leading a downtown renaissance,” said U.S. Attorney William Ihlenfeld. “Morris was a master manipulator who left a trail of broken promises in his wake.”
Photo of Jeffrey James Morris courtesy of his LinkedIn page
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So how long was his sentence?
Five years (see the first sentence)