Monday, February 12, 2007
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.
mortgage fraud
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.
r/
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Posted by on 06/15 at 08:07 PM
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Mortgage Fraud Risk Index Jumps 11 Percent, According to Verisk Analytics Subsidiary Interthinx
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The report...indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter...
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The prosecution and defense rested Thursday in the mortgage fraud cases against Teresa Marie WIlson and Angelo Surveo Williams.
Wyoming Woman Charged with Mortgage Fraud After Allegedly Stealing Sister's Identity
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A Wyoming woman is facing felony charges accusing her of stealing her sister's identity to obtain a mortgage...then defaulting on that mortgage, leaving taxpayers on the hook.
U.S. Attorney Targets White-Collar Crime
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In San Francisco, Mr. Russoniello said he is trying to crack down on cases like mortgage fraud, though he doesn't have the budget to hire additional white-collar prosecutors.
Arrests Made in Orlando Mortgage Fraud Roundup
MyFoxOrlando.com
During the real estate boom two years ago, some units were going for a half million dollars. Now some are short selling for just 50 grand.
10 Accused of Mortgage Fraud at PR Coastal Resort
Forbes
A developer and nine other people, including a former salsa singer, have been charged in an alleged $14 million mortgage fraud in Puerto Rico...
Strodtman Jury Selected in Mortgage Fraud Trial
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Attorneys will deliver opening statements this morning in the trial of Mark Strodtman, who is accused of bilking homeowners in a mortgage scheme years ago.
FHA Digging Out After Loans Sour
Wall Street Journal
Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration...
Mortgage Fraud Probe Nets 105 Across State
Bradenton Herald
At least one local man is among 105 people arrested across the state following a nine-month investigation into organized mortgage fraud.
Mortgage Fraud Increases
MortgageRates.co.nz
The number of frauds involving professional advisors, such as accountants and lawyers, has increased from two to four since March 2008.
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
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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 
