Where’s the $6 Million?

Written by Jim the Realtor

May 3, 2012

Congratulations to Kelly and Will for great reporting that led to this conviction:

http://www.voiceofsandiego.org/sommerset/

It’s been three years since a Voice of San Diego investigation exposed a $13 million mortgage swindle involving more than 80 condos in North County cities Escondido and San Marcos.

This afternoon, federal courts sentenced the swindle’s mastermind, James McConville, to nearly eight years in prison and ordered him to pay more than $7 million in restitution. McConville pleaded guilty in January to fraud and money laundering charges.

The swindle’s effects still linger. The crash from more than 80 foreclosures in three complexes caused surrounding condos’ value to plummet. McConville’s scam units sold in 2008 for more than $300,000 each. Today, there are units in one of the complexes, Sommerset Villas, currently for sale for $64,900 and $80,000.

6 Comments

  1. Jim the Realtor

    Hat tip to AL for sending in the McCON article!

    Meanwhile…..

    The Freddie Mac survey showed the 30-year, FRM averaged 3.84% for the week ending Thursday — the lowest rate ever recorded — inching down from the prior week’s average of 3.88%. Last year at this time, the 30-year FRM averaged 4.71%.
    The rate’s previous all-time record was 3.87%, registering on February 9.

  2. livinincali

    Interesting that the rates are setting new lows. The 10 year and 30 year treasury bond benchmarks are well off their 2011 and early 2012 lows. I continue to think rates are going to stay low a lot longer than most people think. They did in Japan and they did during the great depression.

  3. Sol

    A couple answers to the 6 million dollar question –

    Some of it is in the form of expensive cars, art, fancy furnishings, toys, etc., all of which magically disappeared from what was once his lavish estate in Castro Valley (which was stripped clean). Probably all now stashed away in some warehousing.

    Source – http://abclocal.go.com/kgo/story?section=news/iteam&id=7067415

    Then there’s the production of the B grade slasher flick “Red Velvet”. And… “the accompanying music video, which features McConville himself in one scene as a coach training his students the correct way to stab someone in the back.”

    Source – http://www.sfweekly.com/2009-08-05/news/misdeeds/

  4. Alex

    Perhaps McCon withdrew the money in the form on Official checks and placed them in a safety deposit box?

  5. Interesting

    @Sol and AL, thanks for the links.

    8.75 years doesn’t sound like enough for this scumbag especially considering his prior conviction, his IRS troubles, and his stripping of the ranch and hiding of assets. Grrr. They should let him rot in prison until he coughs up the cars, art, and cash.

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