At the time 27 additional wire fraud and tax evasion charges against Jeffrey J. Morris were filed on September 26, U.S. Attorney William Ihlenfeld revealed the trial would begin in mid-November.
On Wednesday, the federal prosecutor confirmed the prceedings against the former president of Roxby Development was pushed into early 2024 at the request of Morris’s attorney, Brian J. Kornbrath out of Clarksburg, W.Va. Kornbrath is the federal public defender in West Virginia’s Northern District.
Morris, according to the indictments, allegedly received as much $7 million from more than 20 investors – some local and several from out of the area – to renovate the Mount Carmel Monastery, the Scottish Rite Cathedral, and the McLure House Hotel.
“We had set the trial to begin in the middle of November, but his attorney asked for the delay so he had time to review all of the evidence that we’ve presented on the prosecutorial side of this case,” Ihlenfeld explained. “That was granted because of the amount that is involved. With 18 counts of wire fraud and 10 counts of tax evasion, there are a lot of records to review.
“This case is very intricate, but thankfully we have a lot of terrific investigators in this office and many more with the Internal Revenue Service that are assisting us in this case,” he said. “Could there be more charges? I learned a long time ago that, when you are in this position, never say never. Our investigators will continue researching all of the records we have obtained, and they will continue looking for even more.”
Ihlenfeld, who is serving for the second time as the Northern District’s chief prosecutor, initially charged Morris with a single count of wire fraud on September 8th and announced at that time the federal government filed the charge because his office had received proof the suspect was scheduled to leave the country.
“I cannot say that trip was involved in a plan to flee, but we did feel it was best to gain control of Morris and of his travel plans,” he explained. “But we are familiar with the fact he lived abroad for several years before he returned to the Wheeling area in 2018, and that traveling overseas was not a new thing for him. We wanted to keep him here because, at the time we filed the first charge, we knew more were coming.
“Mr. Morris knew it, too, because he had made contact and spoken with some federal investigators before any of this appeared in the news here in the valley,” Ihlenfeld said. “He is not incarcerated and he is not required to wear an ankle bracelet at this time, but his travel has been restricted to the Northern District of West Virginia and he is required to communicate his need to travel to our office.”
Made Whole Again?
The federal prosecutor confirmed he’s discovered many victims in the aftermath of the Roxby Development’s rise and fall in the city of Wheeling.
Investors, vendors, and former employees all have filed lawsuits against Morris and Roxby Development in effort to recover the monies owed from their respective agreements with Morris. According to the Chapter 11 bankruptcy paperwork filed by Morris in May, Roxby possesses between $10-$50 million in debt. Not only is there $5.3 million still owed on the downtown Wheeling hotel, but also more than $500,000 on the note for the Scottish Rite, and thousands more to vendors and former employees.
In fact, Morris made local and regional news soon after purchasing the McLure House by painting the hotel white. Roxby, however, failed to pay L&L Painting of Glen Dale $67,000 for the job.
“And that’s just one example that is listed on that paperwork as far as the debts that are still owed,” Ihlenfeld said. “Of course, that Chapter 11 filing was dismissed by the federal bankruptcy judge (David L. Bissett) because of the lack of maintained insurance on those properties.
“Will those investors be able to recover their money? Will the vendors and former employees ever be paid what they are owed? While we have identified some assets, it does not appear there is enough to make everyone whole again in the future,” he explained. “We will continue searching and investigating every piece of information our people discover, and if funds are found, we’ll be happy to make those dollars go to the people who are owed them.”
According to the federal prosecutor, an individual charged with a single count of federal wire fraud could face as many as 20 years in prison with fines not exceeding $250,000. As for the tax evasion charges, those found guilty face up to five years in prison with fines as much as $250,000 per change plus repayment of the overdue taxes.
That means if Morris is found guilty of all charges, technically he would face as many as 410 years in federal prison and $6.5 million in fines.
“Of course, everyone is innocent until proven guilty, so it is impossible to comment on the topic of possible jail time, but the sentence for one count of federal wire fraud is 20 years with a fine of no more than $250,000. That I can confirm,” Ihlenfeld said. “Once the new court date is determined, that information will be released to the public.”
