SAN DIEGO -- As the mortgage meltdown sweeps the country, the misery index is high for homeowners in California. Ranking right up there with us is Colorado.

Residences in both states are targets for people hoping to make a quick buck. That's why we are interested in Stephen Angelo Benaske, a mortgage broker who used to live in Denver and is now doing business in San Diego.

Erin Toll is director of the Colorado Division of Real Estate and she said that Benaske's girlfriend, also a mortgage broker, deposited $81,000 into Benaske's account -- money that was supposed to go to a client for a refinance deal.

Benaske then proceeded to spend at least $12,500 of the stolen funds. He spent money, said Toll, on a "$400 dinner, $1,800 to limo service, a vacation in Mexico; that's a little suspect."

Eight months later we track down Stephen Benaske in La Jolla. Apparently he is setting up business in San Diego. Given what has happened in Colorado we wanted to make sure he knew what the I-Team does for a living.

Benaske confirms he is in a new business through his website TheShortPayCenter.com. He said he is negotiating with lenders on behalf of homeowners. When we ask about his record in Colorado, Benaske said he did nothing wrong.

We asked him if he took that $12,500. He said, "I did not."

But Toll said that is not true and she has proof. Benaske already admitted on tape he spent the money.

And now the I-Team has that tape.

Listen to the Benaske Phone Interview:

Toll said, "He was either not telling the truth then or not telling the truth now."

Benaske did tell us the truth about one thing. He said he has no actions taken against his license.

But, Toll said that will change. Colorado intends to file charges in the next couple weeks seeking revocation of Benaske's mortgage broker license and issue a fine. Once that happens Benaske may not be able to get a license in California or anywhere else.

But until Benaske is proven guilty and his license is revoked, he is open for business in California.