California Mortgage Fraud Targets Surrender Brokers' Licenses

In Southern California, The Press Enterprise reports:

• "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. Stonewood represented investors in buying hundreds of homes in Riverside County, particularly in Murrieta and Temecula. Many of the houses are now in default or foreclosure and many of their former clients are suing Stonewood for fraud. The company is also under investigation by the Riverside County District Attorney."

Stonewood Consulting and Montecastro are also targets in several civil lawsuits accusing them of fraud. Richard Ackerman, a lawyer for many of the plaintiffs, said hundreds of investors in California and several other states were defrauded. For more, see Murrieta company, broker to forfeit licensese.

Go here for other posts on this story.