SAN DIEGO -- Experts said it could be the largest mortgage scam in California history.

The alleged scam has resulted in nearly $1 billion in bad loans, involved 800 victims and has targeted military families, the Filipino community and churchgoers.

There are foreclosed homes, ruined credit and life savings lost as a result of this scam.

"They put me in default for over $3 million,” said alleged victim Vicky Reiss.

Many alleged victims are standing up and demanding government action against two men they consider crooks -- Hendrix Montecastro and James Duncan.

Reiss said, "This man needs to be put in jail."

The stories of how the victims were “taken” vary, but nearly all of them end the same way.

"I keep praying, everyday. I didn't usually go to church before. Now, I go to church because of this,” said alleged victim Nanshi Ignacio

Attorney Richard Ackerman represents 100 people suing Duncan, Montecastro, their associates and the numerous companies they ran.

"This case has all the markings of bad stuff for a long time, and nothing being done about it,” said Ackerman.

According to 10News investigators, Duncan and Montecastro pick out investment houses in Temecula and Murrieta.

The unsuspecting investor is enticed to buy the property and promised a 19 percent return.

However, Duncan and Montecastro used a crooked appraisal to inflate the value of homes and would pull out all of the equity for themselves. They were supposed to make mortgage payments, but they did not make payments.

"These guys have proven that they can do it by the hundreds; it was not by a couple of dumb investors who didn't know any better," said Ackerman.

Mory Simmons’ Temecula investment is in foreclosure and her Bonita home of 23 years is threatened.

"Having been a victim has been devastating,” said Simmons.

According to Simmons, Duncan and Montecastro pressured her to buy a Temecula home for $540,000. The pair received an inflated appraisal of $635,000 and allegedly stole the $125,000 out of the property, leaving Simmons in foreclosure.

Simmons said, "I've had it on the market, if I'm lucky enough to sell it, I will probably lose $200,000."

The FBI, U.S. Securities and Exchange Commission and California Attorney General’s Office all refused to comment citing policy, but have interviewed victims.

The Department of Real Estate finally revoked Montecastro’s license after being pressured by victims and calls from the 10News I-Team.

10News investigators followed a money trail to a Temecula boutique owned by Duncan’s wife, Andrea. Victims said their money was funneled at the boutique.

A manager threw out 10News investigators who were trying to speak to Duncan or his wife.

A former employee informed 10News on Montecastro’s address, but the person who answered the guard’s phone call denied knowing Montecastro.

At the Arbor Terrace real estate office Duncan and Montecastro leased, all lights were off.

The home listed on the Department of Real Estate records as corporate headquarters is vacant and being foreclosed.

Ackerman said, “I think they do intend on skipping town, all the more reason for the government to get off its duff.”

10News learned that local residents were not the only victims.

Investigators learned that securities regulators from Washington and Iowa issued cease and desist orders to Duncan, citing “untrue statements.”

The complaints describe a $68,000 inheritance taken from a 25-year-old woman, and at least “$250,000 in wired funds” defrauded from an elderly woman.

Ignancio said, “I want to see them in jail, really. They've been doing this for a long time and they've victimized a lot of people."

Duncan and Montecastro’s attorney claimed the victims are simply unhappy about the outcome of the investments.

10News attempted to reach both men repeatedly for an interview, but never heard from them.

The victims said they believe their funds are now sitting in an offshore account, and said Duncan and Montecastro might be planning to flee to Malta.

Victims said they want government officials to move quickly before the money disappears or more victims are fleeced.