Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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Civil Case Alleges RICO violation in $1.2 Billion Mortgage Fraud Case
A civil Racketeering Influenced and Corrupt Organizations Act (RICO) case was filed against what are alleged to be the perpetrators of a vast real estate and currency exchange scheme taking place in California, Arizona, Texas, Washington, Oregon, Arkansas and on federal military lands.
The suit alleges that the defendants may have scammed more that 700 victims in several states and on military installations, including an air base in Tucson, Arizona. The total damages are alleged to exceed $1.2B in this suit and a related suit filed in state court last month (California Superior Court Case No. RIC463483).
The complaint, filed on February 8, 2007, alleges that four operators of Stonewood Consulting, Inc., Pacific Wealth Management LLC (Nevada), and Sunburst Financial Systems, Inc., engaged in an investment scheme involving perhaps thousands of wire and mail transactions in Arizona, California and Texas. The named individuals are James B. Duncan, Hendrix Montecastro, Maurice Mcleod and Charlie Choi, all residents of Southern California.
The alleged mastermind of the scam is one James B. Duncan, who was previously ordered by the states of Washington and Iowa to cease and desist in investment activities. According to the State of Washington, in Department of Financial Institutions Case No. S-02-259, Duncan was previously fired from Olde Discount brokers for misappropriation of corporate funds and unauthorized investment activities, The Department found that Duncan defrauded a female victim and was ordered to pay restitution. In Iowa, Duncan was alleged to have taken financial advantage of an elderly victim in Iowa Division of Insurance Case No. C02-07-017.
In California, Duncan’s alleged company, Pacific Wealth Management (NV), and individual Maurice Mcleod were ordered to cease and desist in the improper use of investor advisor numbers belonging to a legitimate brokerage in California Superior Court Case No. RIC462505. A related temporary restraining order was issued in Case No. RIC463483 against Hendrix Montecastro, and Maurice McLeod.
In the present case, the defendants are alleged to have induced members of the general public, hundreds of military personnel, church-goers, and health care professionals to get involved in a real estate business whereby “investors” could each become the owners of multiple residential properties throughout Arizona and California. In fact, fraudulent loan applications and income information were submitted on behalf of investors without their knowledge according to the suits. Now hundreds of alleged victims face multiple foreclosures and renters are losing their homes.
In what the defendants called a “short-term” investment, military personnel and others were allegedly duped into investing in the Iraqi dinar. However, the suit alleges that, while millions were taken from investors, the foreign currency was never delivered or only a minute fraction would be delivered to “investors.” None of the defendants appear to be licensed to offer securities or currency exchange services anywhere in the United States.
The suit alleges that the activities of the defendants are having a damaging impact on the Iraqi dinar, the United States real estate market, and on the credit worthiness of the hundreds of victims, many of whom can no longer pay for so much as basic necessities. Some of the victims are alleged to have lost nearly everything they own. Military victims face even more serious consequences for excessive indebtedness. Members can suffer a breaking of rank and other devastating administrative action by superior command.
In the coming weeks, plaintiffs will ask the United States District Court to completely shut down the activities of the defendants and to place their enterprises into receivership.
If you are a victim of this massive 1.2 billion alleged scam in the Murrieta area please visit our victims site at www.coreclient.110mb.com if you are curious to learn more you are more than welcome.
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc.
Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area.
Lend America, VP Ashley Banned from FHA Housing Wire
Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week.
Countrywide Tries to Pin Blame on Insurer Court House News
Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse.
Investors Say They Were Swindled in Property Scheme Fox 13 Now
Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches.
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about mortgage banking, mortgage fraud matters or who believe they require legal counsel should seek the advice of an attorney. The creators, editors and sponsors of Mortgage Fraud Blog do not intend to create a confidential relationship or an attorney-client relationship by communication via or arising from this site.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
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