Real Estate Fraud Week Continues

Real Estate Fraud Week continues here at L.A. Land. Tonight, an update on that alleged real estate investment scheme that has resulted in a big mess of foreclosures in Riverside and Temecula, and a bunch of lawsuits: The brokers who arranged the investments have agreed to forfeit their real estate licenses:

From the Press-Enterprise: "Stonewood Consulting Inc. and its broker, Hendrix Moreno Montecastro, will forfeit their real estate licenses rather than contest a wide range of violations filed against them by the California Department of Real Estate, according to an agreement filed with the department.... Among the accusations the department filed late last month against Stonewood and Montecastro was that they used inflated appraisals and took commissions ranging from $74,000 to $115,000 for each house they bought for investors."

Very large commissions, no?

Read the original post here.

To refresh: The alleged victims say the scheme preyed on older, middle-class investors who overpaid for more than 100 "investment properties" in Riverside and Temecula, believing the extra cash was being wisely invested on their behalf, only to see the cash disappear.

Click here to see a very elaborate website run by the alleged victims.

Comments

[core client]

This is all true but there is always more to the story, Stonewood also had other partners that dabbled in investments that promise above average returns based on non traditional investing such as foreign currency, diamonds, gold, antiques, distress properties and of course traditional investments. Some investors received dividends for a while so as to bring in more clientele these investors were normally real investors as oppose to straw investors (Straw buyers are loan applicants who perpetrators use to obtain home loans, but who usually don't intend to occupy the properties they're buying). These investors with out knowingly were used to legitimize the company along with there licenses and stolen credentials. Once the web of deceit was spun they would bring in the initial top peered straw investors and produce high returns for them so they would recruit their friends and co-workers into the un-suspecting scam this played out for several years. Their initial investment would normally make a return so more investors (Straw buyers) would be brought into the web of deceit. Eventually this collapsed now there is a line been drawn in the sand us the “Core Clients” and the grifters and their top peered straw buyers. These straw buyers believe it or not were our friends at one time they are now being used to show other unsuspecting investors (straw buyers) or law enforcement they are legit and are receiving dividends. We know the truth it is only a matter of time before their payments stop I suspect sometime after the court date.

Everyone is focusing on the Christian portion of this scam but it really leverage off of friendships most people were recommending these companies because they had been involved in them for either several months or for a few years and were making money (what they thought was legitimate money from legitimate investments) on them, this fraud fueled more investors/straw buyers to join, which were friends of the initial investor/straw buyer. These companies had a squeaky clean pasts because they had hijack legitimate company credentials so if you look up the company in the BBB it would come back with AA+ returns, check them out at the SEC and all appeared to be legal, check out the California Corporation and it comes back as a company created back in 2000. Yet, all a long this was set up to appear this way this was part of the deceit in reality they were a Nevada corporation operating in California that part happened to be conveniently left out.

So yes it is easy to pass judgment in hindsight but due diligence was done on these companies and base on the pass of these crooks this is not the first time they have committed fraud and spun their web of deceit they have been convicted in 3 other states in performing similar scams on victims. So yes we are victims and we do want to get the word out so these crooks can't continue to operate and continue to commit FRAUD against unsuspecting people. These suspected criminals are wolves in sheep clothing. Our mission is to make the public aware of this crime and to assist victims into putting their lives back together after this horrific crime. Public awareness is a must to put these guys out of business they are cockroaches are starting to run, in order to get them behind bars we need the public’s support in getting law enforcement and the DA involved. To the DA and Law enforcement this is a civil matter and don’t want to prosecute, this is the exact attitude that the scammers are counting on so they can scam the next 800 or so victims. California right now is rank #2 in this type of crime and rank near the bottom in prosecuting this type of crime. We need to make an example out of these scammers so they can’t get away with it.

So Please visit the site if you are a victim of this horrific crime or are curious to see what a ponizi scammer look like http://www.digg.com/business_finance/Want_to_see_what_a_PONSI_scammer_looks_like
or visit us at
http://www.coreclient.110mb.com

Respectfully,
cORE

[Foolish One]

To refresh: The alleged victims say the scheme preyed on older, middle-class investors who overpaid for more than 100 "investment properties" in Riverside and Temecula, believing the extra cash was being wisely invested on their behalf, only to see the cash disappear.

The investors had ZERO knowledge of the 'cash back at closing' that went into the pockets of the broker as 'commissions.' They had zero knowledge of it...not that we thought it was 'wisely invested on our behalf."

That is an untrue statement. Please correct.