James Christopher Castle, Mortgage Elimination Scheme, California 2011

Grimy Times Investigates

James Christopher Castle, a 57-year-old former Petaluma resident, has been found guilty of 35 counts in a brazen bank fraud scheme that targeted distressed homeowners in California. The scheme, which spanned from April 2010 to November 2011, saw Castle and his co-conspirators use a ‘mortgage elimination program’ to fraudulently eliminate home mortgages and profit from the subsequent home sales.

According to court documents, Castle’s scheme involved recruiting homeowners into a Nevada City-based church, Shon-te-East-a, Walks With Spirit, or its successor entity Pillow Foundation. The homeowners were told that these entities would offer protection against the banks, but in reality, they were being led into a complex web of deceit.

Castle, who had fled to New Zealand and then Australia in 2011, was extradited back to the United States in May 2020 after a three-year process. He was transported back to the United States by the U.S. Marshals Service, who successfully conducted the extradition during the height of the COVID-19 pandemic.

The jury found Castle guilty of 35 counts, including conspiracy, wire fraud, and bank fraud. The scheme, which involved 37 properties, resulted in significant losses for the victims. Acting U.S. Attorney Phillip A. Talbert praised the jury’s verdict, saying, ‘Castle decided to game the system so that he could profit in the midst of the then looming financial crisis, to which his actions contributed.’

‘Mortgage fraud is not a victimless crime,’ said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. ‘Identifying and investigating those who abuse the system for their own personal gain ensures the mortgage system is safer and fairer for everyone.’

The U.S. Marshals Service also praised their role in the extradition, saying, ‘The U.S. Marshals Service successfully conducted this extradition during the height of the pandemic. To minimize exposure, the extradition was conducted expeditiously with minimal time on the ground.’

Castle’s sentencing is pending, but he faces significant time in prison for his crimes. The case serves as a reminder that mortgage fraud is a serious crime that can have devastating consequences for victims.

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