Real Estate
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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?
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.