North County Times - "Scope of alleged scam grows" (2-14-07)

"According to the original lawsuit, the plaintiffs borrowed as much as $3 million each in mortgage loans and credit card advances. They spent the majority of that on single-family homes in and around Murrieta; the original lawsuit alleges that the defendants promised to invest the remaining 10 to 25 percent of it in low-risk, high-return investments. The defendants allegedly lied to the clients about the meaning and significance of the loan documents and other forms they were signing, and allegedly acted as securities brokers without the necessary licenses. Many of the houses are now going into foreclosure, and the lawsuit alleges that the defendants have pocketed the money."