Local
Men accused of mortgage scam to flee to Malta
By MaltaMedia News
Jul 15, 2007 - 10:39:53 AM

Two men involved in a big mortgage scam in California history, are planning to flee to Malta, 10News.com reported. Hendrix Montecastro and James Duncan’s scam has resulted in nearly $1 billion in bad loans, involved 800 victims and has targeted military families, the Filipino community and churchgoers, 10news.com added.

The victims said they believe their funds are now sitting in an offshore account, and said that two men might be planning to flee to Malta. Victims said they want government officials to move quickly before the money disappears or more victims are cheated.

The outcome of the scam involve foreclosed homes, ruined credit and lost life savings.  Many alleged victims are standing up and demanding government action against two men they consider crooks Montecastro and Duncan.

According to 10News.com, Duncan and Montecastro pick out investment houses in Temecula and Murrieta. The unsuspecting investor is enticed to buy the property and promised a 19 percent return. However, Duncan and Montecastro used a crooked appraisal to inflate the value of homes and would pull out all of the equity for themselves. They were supposed to make mortgage payments, but they did not make payments.

The FBI, U.S. Securities and Exchange Commission and California Attorney General’s Office all refused to comment citing policy, but have interviewed victims.

The Department of Real Estate finally revoked Montecastro’s license after being pressured by victims and calls from 10News.com.

Investigators learned that securities regulators from Washington and Iowa issued cease and desist orders to Duncan, citing “untrue statements.” The complaints describe a $68,000 inheritance taken from a 25-year-old woman, and at least “$250,000 in wired funds” defrauded from an elderly woman.

Duncan and Montecastro’s lawyer claimed the victims are simply unhappy about the outcome of the investments.

Source : 10News.com