An Indianapolis real estate developer has been sentenced to 41 months in prison for defrauding investors through a Ponzi scheme. Herbert Whalen, also known as "Bert Whalen," pleaded guilty to conspiracy to commit wire fraud. The sentence was handed down by Judge Madeline Cox Arleo in Newark federal court.
Whalen operated Oceanpointe Property Management and misled investors about the condition of properties in Indiana and New Jersey from August 2016 to July 2018. He promised returns on investments after repairs and leasing, but many properties were not rehabilitated or occupied. To deceive investors, fake leases were created for vacant properties.
Whalen commingled rent payments and selectively paid investors to avoid detection. He also instructed an employee to pose as a satisfied investor online to prevent exposure of the fraud. This led to significant financial losses for investors while funding Whalen's lifestyle.
In addition to his prison term, Whalen will serve three years of supervised release. Acting U.S. Attorney Vikas Khanna credited FBI special agents under Acting Special Agent in Charge Terence G. Reilly with the investigation.
The case was prosecuted by Assistant U.S. Attorneys Caroline Silane and Ari B. Fontecchio.
Defense counsel was John L. Tompkins from Tompkins Law in Indianapolis.
