Attorney General Todd Rokita has initiated legal action against an Indianapolis man and associated businesses for allegedly defrauding real estate investors. The lawsuit claims that Herbert Whalen continued to manage property investments without a required real estate broker license and concealed prior convictions.
The entities named in the lawsuit include MBNS LLC, MBNS Invest LLC, and My Bricks and Sticks LLC (now dissolved). "Our office has made it clear that when you break the law, we will hold you accountable," Attorney General Rokita stated. "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."
Requiring property managers to hold valid real estate broker licenses ensures they meet basic standards of competence and ethical responsibility. The lawsuit alleges that Whalen continued his illegal activities following a guilty plea related to a 2018 conspiracy to defraud real estate investors in the Oceanpointe Investments scheme. Using various LLCs and the fictitious name “Herb Francis,” Whalen is accused of continuing similar fraudulent practices.
In 2018, Whalen pleaded guilty to charges involving a scheme where he misrepresented the condition of properties managed by his company, Oceanpointe. Investors were led to believe that dilapidated properties would be repaired, rented out, and generate rental income. However, many properties remained unrepaired and vacant. To deceive investors further, fake leases were created by Oceanpointe employees under Whalen's direction.
Whalen allegedly used a false name to hide his identity while providing property management services through various LLCs with no broker licenses. His own broker license was revoked in early 2018 by the Indiana Real Estate Commission due to unreported criminal convictions and managing a company without a proper license.
The Consumer Protection Division of Attorney General Rokita’s office filed this lawsuit through its Homeowner Protection Unit. This unit aims to protect all parties involved in the housing market from deceptive acts related to mortgage lending and violations of state and federal laws.
Attorney General Rokita thanked his team for their efforts on this case, particularly Deputy Attorney General Chase Haller — Section Chief for the Homeowner Protection Unit. The lawsuit seeks a jury trial, prosecution costs, and other damages against the defendants for multiple violations of the Home Loan Practices Act.
Residents are encouraged to report any suspected scams or scam attempts by contacting the Office of the Indiana Attorney General at indianaconsumer.com or calling 1-800-382-5516.
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