Orange Crest Realty Corporation defaulted on a promissory note and they did not righfully own the property that secured the note Riverside California

Orange Crest Realty has advertised in the Los Angeles Times business section for about 2 years. They offer investors the ability to earn high returns (12-18%) with promissory notes that are secured by Deeds of Trust for properties the firm owns. They claim the loan to value on all loans is 50% or less so if they default you will be able to recover the principal via a foreclosure and Trustee Sale of the property. I entered into an agreement with them in April of 2006 with an 18 month term on a 6 figure investment The first problem I encountered was getting the recorded Deed of Trust on the property. I was told that the county recorder's office had a backlog and that it would be forthcoming. The monthly interest payments came as promised, but still no recorded Deed of Trust. After more than a year of delays I finally received the Deed of Trust. As the 18 month period approached I received a call asking if I wanted to re-invest or get my principal back. I opted to get my principal back.

When the payoff date arrived the check I received was a single interest payment rather than the payoff amount. After numerous unreturned phone calls I was told by Ron Shade (the president of the company and my main contact) they had cash flow problems and would repay the loan in about 30 days. After another 60 days without being paid, I hired a foreclosure specialist who began the foreclosure proceedings. A Notice of Default was filed and a pay off statment was sent to Orange Crest. They claimed they would pay if off, but nothing has been forthcoming. Later it came to our attention that Orange Crest was not the owner of the property at the time the original note was signed (an Orange Crest affiliate owned the property). Because of this I now need to do a judicial foreclosure which will cost more time and money. The company and Mr Shade continue to not return phone calls. They also continue to advertise and solicit more investment money. In my opinion, this has the makings of a classic Ponzi scheme.

Jim H
Carlsbad, California
U.S.A.