Nov 20, 2009 12:40 am US/Pacific
7 Charged In Alleged Inland Empire Securities Scam
RIVERSIDE, Calif. (AP) ―
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Rich Pedroncelli/Getty Images
State and federal prosecutors have charged seven people in an alleged securities scam that cheated dozens of people out of $17 million.
The Riverside County district attorney's office said Thursday that James Duncan, who called himself "the Cash King" in online videos, and Hendrix Montecastro each face 249 counts, including grand theft.
Five others were also charged and arrested.
Prosecutors say they used investment seminars, Internet ads and word of mouth to lure at least 75 people to invest in a series of shell companies.
A civil lawsuit also alleges they bought homes on behalf of investors, refinanced them based on inflated appraisals and took commissions.
The U.S. Attorney plans to file a separate complaint alleging mortgage fraud with losses of about $125 million.
(© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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