The former business partner of Clayton Morris, the Fox News host turned financial guru, was indicted by a federal grand jury and arrested at his home in Indianapolis on Thursday on charges that he defrauded real estate investors recruited by Mr. Morris.

The indictment, by a grand jury in Newark, charged the former partner, Herbert Whalen, with conspiracy and wire fraud in connection with the sale of houses to two investors — one from New Jersey and one from New York. But the charging document also said Mr. Whalen and “his co-conspirators caused millions of dollars in losses .”

Image Herbert Whalen was indicted by a federal grand jury on charges that he defrauded real estate investors.

According to the 11-page indictment, Mr. Whalen and others enriched themselves by “misrepresenting and concealing the poor condition” of the homes they were selling in Indianapolis and “creating fake leases” to make it appear that the single-family houses had rent-paying tenants in them.