Seven arrested in$150 million real estate fraud investigation
DESERT SUN WIRE SERVICE
NOVEMBER 19, 2009
Seven people suspected of perpetrating a $150 million securities and mortgage fraud scheme that victimized hundreds of Riverside County residents are facing around 250 felony charges, prosecutors said today.
``They stole millions of millions of dollars from individuals who live in our community, banks and financial institutions,'' said District Attorney Rod Pacheco. ``They also damaged neighborhoods and substantially contributed to the economic collapse of our real estate market.''
The alleged mastermind of the scheme, James Benjamin Duncan, 38, is in custody, as are alleged co-conspirators Charlie Sung Muk Choi, 34, Thuan Nhan
Du, 33, Cindi Gayle Kelly, 33, Maurice McLeod, 37, and Helen Moreno Pedrino, 47.
They're being held on varying bail amounts at county jails in Riverside and Murrieta, according to Pacheco.
Another defendant, Hendrix Moreno Montecastro, 37, remains at large.
According to the criminal complaint, the crimes occurred between 2005 and 2007 and involved securities fraud, grand theft, identity theft and financial elder abuse.
There are 36 named victims, but Pacheco said they comprise a ``representative class,'' and the actual number of victims ranges into the hundreds.
At the heart of the scheme were two companies -- Pacific Wealth Management and Stonewood Investments, headed by Duncan, prosecutors allege.
The defendants relied largely on Internet advertisements, investment seminars and word-of-mouth reviews to reel in victims, the District Attorney's Office alleges.
According to Pacheco, the defendants promised a 19 percent annual return on real estate investments, but most of the money received was pocketed by the alleged scam artists or teased out to original investors in a Ponzi scheme.
The alleged mastermind of the scheme, James Benjamin Duncan, 38, is in custody, as are alleged co-conspirators Charlie Sung Muk Choi, 34, Thuan Nhan
Du, 33, Cindi Gayle Kelly, 33, Maurice McLeod, 37, and Helen Moreno Pedrino, 47.
They're being held on varying bail amounts at county jails in Riverside and Murrieta, according to Pacheco.
Another defendant, Hendrix Moreno Montecastro, 37, remains at large.
According to the criminal complaint, the crimes occurred between 2005 and 2007 and involved securities fraud, grand theft, identity theft and financial elder abuse.
There are 36 named victims, but Pacheco said they comprise a ``representative class,'' and the actual number of victims ranges into the hundreds.
At the heart of the scheme were two companies -- Pacific Wealth Management and Stonewood Investments, headed by Duncan, prosecutors allege.
The defendants relied largely on Internet advertisements, investment seminars and word-of-mouth reviews to reel in victims, the District Attorney's Office alleges.
According to Pacheco, the defendants promised a 19 percent annual return on real estate investments, but most of the money received was pocketed by the alleged scam artists or teased out to original investors in a Ponzi scheme.
Abridged
SOURCE: MyDesert.Com
___________________________________________
Click for Updates, More Cases and Resources
Search Right Col/Labels for More Posts/Resources
No comments:
Post a Comment