Top Stories Of 2023: Roxby Development Chief Indicted On Federal Charges

For years, Roxby Development and its leader, Jeffrey Morris, were considered cornerstones of the revitalization of downtown Wheeling. Through Roxby, Morris had purchased both the McLure Hotel and Scottish Rite Cathedral. There were grand plans to renovate both and give downtown two more historic sites to use and feature.

That image collapsed this year under failed bankruptcy filings, foreclosure sales and, ultimately, a 28-count federal indictment that accused Morris of defrauding investors out of nearly $7 million.

In April, a foreclosure sale was announced for the McLure, and a total of $5.3 million was owed to former McLure owner Frances Garey. A foreclosure sale would soon be announced for the Scottish Rite Cathedral and, in response, Roxby filed for Chapter 11 bankruptcy. With Chapter 11, it gave Roxby a chance to reorganize and re-emerge.

That chance never came, as U.S. Bankruptcy Judge David L. Bissett dismissed the case because Morris had failed to maintain property insurance on both the McLure and the Scottish Rite Cathedral. The Cathedral also had no liability insurance.

That allowed the foreclosure sales to go through and both buildings reverted back to their previous owners.

Then came the indictment. On Sept. 8, Morris was indicted on one charge of wire fraud. He had planned to leave the country to travel, and that indictment forced him to turn in his passport. William Ihlenfeld, the U.S. Attorney for the Northern District of West Virginia, said more charges would be forthcoming and, on Sept. 27, the full 28-count indictment was announced.

In it, federal prosecutors accused Morris of lying to his investors about the financial picture of his company, which allowed him to purchase assets so that he could bilk investors with renovations that never really happened. Then, he allegedly used the money to pay other investors and support his lifestyle.

He also was accused of failing to account for and pay approximately $163,000 in payroll taxes and $89,000 in FICA employer matching taxes. He allegedly withheld the taxes from employee paychecks but never sent it to the IRS.

"Many were harmed by the actions of Jeffery Morris, including investors, employees, and vendors," Ihlenfeld said when the indictment came down. "Thanks to the outstanding work of the FBI and IRS-CI, Mr. Morris will be held accountable."

"Mr. Morris is accused of taking advantage of innocent investors and creating a deceptive scheme for his own personal gain," said FBI Pittsburgh Special Agent in Charge Mike Nordwall added.

Morris' federal trial was originally scheduled to begin in November, but it was moved to March 26. Morris's attorney, Federal Public Defender Brian Kornbrath, filed an order for a Complex Case designation and requested the court amend the current scheduling of the case, as "discovery is voluminous and a number of material witnesses are located outside of this district."