Who is James Duncan?
James Duncan was born in 1971 and went on to work in insurance and broking- his efforts there led to a cease and desist order from regulators in Iowa and Washington. He then set up Sunburst Factor Fund with Hendrix Montecastro, later renamed Pacific Wealth Management, to give the appearances of an affinity with the well-known wealth- management company (which had nothing to do with the fund).
The duo approached investors in Orange County, California, with a real-estate scheme, which they claimed would make “infinite returns” so long as clients agreed to follow all their instructions for at least three years, without asking any questions.
What was the scam?
The scheme involved investors buying properties on Duncan’s recommendation and Montecastro by taking them out of new mortgages over the new houses’ value. Pacific Wealth Management would then take the difference between the mortgage and the purchase price as a…