Ex-Fox News, Fox29 host Clayton Morris leaves country amid N.J. lawsuits over alleged Ponzi scheme

Clayton Morris, a former Fox News host and Philadelphia native who grew up in Berks County, has moved with his family to Portugal as he and his wife face multiple lawsuits over claims they purposely defrauded investors in what has been described as a Ponzi scheme.

According to Natali Morris, Clayton’s wife and business partner who has worked for MSNBC and CNBC, the move away from their $1.4 million home in Florham Park, N.J., was planned before the family’s recent legal problems.

“We can’t run from our legal battles, no matter where we live, nor would we,” Natali Morris wrote in a blog post last week. “We have to see this through in a way that we can be proud of and answer for on a soul level. This move is not to run.”

But Jynell Berkshire, a real estate attorney who represents several plaintiffs in a lawsuit filed against Morris and his associates in Indiana, told the Indianapolis Star that her clients worry the move could make it more difficult to serve legal notices and retrieve any damages in their favor.

“In my clients’ opinion, innocent people don’t flee the country,” Berkshire said.

Morris, who left Fox News in 2017 and had previously been an anchor on Fox29, is accused in several lawsuits of using his investing podcast and website to convince people to invest in rehabbed properties in cities that include Indianapolis, Detroit, and Jacksonville, Fla. While Morris promised that he and his associates would secure tenants and mail new owners monthly rent checks, investors claim the properties were in bad shape, forcing some to sell the properties at a loss or pay code violations.

Morris is not facing any criminal charges.

In New Jersey, Morris faces two civil lawsuits — one in Morris County and one in Middlesex County — where investors claim he and his associates knowingly deceived clients about the nature and status of the properties they were purchasing.

Nuan Tinio, a Somerset, N.J., resident, claims he purchased a property in Indianapolis in February 2018 for $48,500, under the promise it would be ready for sale or rental within 90 days of closing. Instead, Tinio claims, he was mislead about the property’s condition, and was forced to pay code violations he received from the city.

In Middlesex County, plaintiffs Victor and Michael deJesus and Jihuana Liu claim Morris and his associates misled them about the conditions of the properties they were investing in and failed to provide promised services.

“Morris Invest did not rehabilitate or repair the property, did not market the property to prospective tenants for the generation of rental income, and did not manage the property on behalf of Plaintiffs or those similarly situated,” the lawsuit states.

Morris also faces a federal fraud lawsuit in Indiana, filed by 14 former investors who say they purchased properties that are "now, essentially, worthless” in 2017 and 2018.

“I think it was like a Ponzi scheme where they were taking money for renovations and then feeding it through so that people would feel like it was all working and then they’d be convinced to buy another one,” Brian Peterson, one of the plaintiffs in the federal lawsuit, told the Indianapolis Star.

In addition to the lawsuits, there have been nine complaints filed against Morris Invest with the New Jersey Division of Consumer Affairs, according to a spokesperson. The New York Times reports the Federal Trade Commission has received 21 consumer complaints about Morris’s company. There are several more complaints about Morris and his associates on the Better Business Bureau’s website.

Morris has denied any wrongdoing, claiming through his lawyer that he and his family lost hundreds of thousands of dollars in his real-estate endeavors.

“Because these matters are currently being litigated, Clayton and Morris Invest are unable to make any further statement and look forward to a swift and just resolution for all,” David Hensel, Morris’s attorney, said in a statement to the Indianapolis Star.

Despite the lawsuits, Morris is still posting new podcasts on his Morris Invest website. The most recent, uploaded Monday, features Morris and his wife describing how to live off rental income, complete with a promotional link asking anyone interested in learning more to “book a call with our team.”