A federal agency is delving deep into a network of financial transactions among five Riverside County men whose clients accuse them of squeezing tens of millions of dollars out of Murrieta-area real estate and pushing more than 100 local houses into foreclosure, according to court documents.

The documents stem from a tangled web of related legal actions by the U.S. Securities and Exchange Commission, by the five men and by the clients who are suing them in Riverside County civil court.

The securities commission has subpoenaed banking records and information from La Cresta resident James Duncan, Murrieta resident Maurice McLeod, Palm Desert resident Chris Oetting and companies linked to Steve Kayden of Cathedral City, and Dennis Dewitt Jr. of San Jacinto.

The agency alleged last month that the five men violated federal securities law by selling investments without being properly licensed and may have defrauded their investors. The agency issued the subpoenas April 12, but followed up with a public filing June 19 in response to what it called delaying tactics and other "gamesmanship."

A string of civil lawsuits filed since January allege that Duncan, McLeod and Hendrix Montecastro roped clients into a fraudulent investment scheme that left them with close to $100 million in mortgage debt. The California Department of Real Estate is revoking the real estate licenses of Montecastro and his Murrieta mortgage brokerage, Stonewood Consulting Inc. Meanwhile, lenders have seized dozens of houses in western Murrieta's Copper Canyon neighborhood and near the SCGA golf course in eastern Murrieta from Stonewood clients who defaulted on mortgages.

An attorney for Oetting and McLeod said the lawsuits lack merit and noted that the securities commission's investigation has not led to civil or criminal charges.

One filing by the federal commission turned up as evidence in Riverside County civil court Thursday, when the attorney asked for a delay in handing over documents requested by the plaintiffs. The attorney offered the filing as evidence of possible future criminal charges and argued that documents sought by the plaintiffs could end up compromising his clients' Fifth Amendment rights against self-incrimination.

The commission itself does not generally file criminal charges, but its conclusions can be used as evidence in criminal investigations.

"The information obtained by the commission to date, however, has outlined a complex and evolving series of offerings suggesting various related potential forms of mortgage fraud and foreign-currency scams," the commission said in the document filed Thursday.

If the SEC files a civil lawsuit, it could demand that the defendants pay fines and be barred from investment activities. James Duncan already faces similar cease-and-desist orders from state authorities in Iowa and Washington.

A Los Angeles-based attorney for the commission declined to comment, citing the organization's policy.

No criminal charges have been filed against Oetting, McLeod or any of the others named in the civil suits, an attorney for the two men noted.

"They have not even yet determined whether they're going to prosecute a civil action," attorney Paul Runes said, referring to the SEC.

Several of the plaintiffs suing Duncan and Montecastro have said they had been interviewed by FBI in the matter. FBI representatives haven't returned phone calls seeking comment. The Riverside County district attorney's office has confirmed an investigation into potential wrongdoing but hasn't discussed its details.

The attorney for the plaintiffs in the civil suits, Rich Ackerman of Temecula, has shared evidence with authorities, Runes noted, calling it a further reason to delay handing over documents in the civil lawsuits, which he said are without merit.

"This thing has been pending since January, and it has not even reached first base," Runes said. "At the appropriate time to tell this the way it needs to be told, we'll do that."

Contact staff writer Chris Bagley at (951) 676-4315, Ext. 2615, or cbagley@californian.com.

State shuts down real estate player (June 30, 2007)

State agency targets mortgage brokerage (May 25, 2007)

Sixth lawsuit alleges money laundering (May 23, 2007)

New player emerges in fraud suits (Feb. 21, 2007)

Scope of alleged scam grows (Feb. 14, 2007)

Investors' legal battles span 5 years (Feb. 11, 2007)

Renters latest victims of alleged scam (Feb. 10, 2007)

Judge refuses to shut down brokerage (Jan. 19, 2007)

Real-estate investors bought on faith (Jan. 14, 2007)

High-ball offers raised flags in 2004 (Jan. 9, 2007)

Suit alleges massive mortgage scam (Jan. 6, 2007)