UPDATE: Late Wednesday afternoon, Executive Director Preston Prince informed KSEE 24 News that housing assistance payments for all units at Stonemark have been put on hold until the situation is further investigated.

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If you were to walk through Fresno’s Stonemark apartment homes it would not take long to see the property is in jeopardy.

Foreclosure signs and bank notices are posted on doors and windows throughout the 106 unit complex in east central Fresno.

Records indicate the complex was involved in an alleged real estate scam orchestrated by James McConville of Northern California.

McConville is being investigated for committing mortgage fraud through the use of, what real estate insiders call, “straw buyers.”

A “straw buyer” is a person who, typically for a fee, allows their name and credit to be used to purchase a property they never intend to be responsible for financially.

While the straw buyer’s name remains on the loan documents, that’s usually the end of their contribution.

In the case of Fresno’s Stonemark homes, 22 different straw buyers allegedly rented their identities to McConville leaving their credit and history on the hook for the loans, trusting McConville would pay.

Now, hundred of homes connected to McConville have gone into foreclose.

Tenants at Stonemark are now concerned their rent money isn’t being used properly.

Records show McConville is no longer making mortgage payments at the property and hasn’t been for some time.

Stonemark tenant, Veronica Parks questioned if she should continue to pay rent, “I don’t want to be paying and then it’s going to the wrong people. It’s just ripping me off.”

But, one city-county organization that has forked over thousands of tax payer dollars in rental assistance for tenants at Stonemark hasn't been asking questions about where the money is going.

But we have.

According to Housing Authority, Executive Director Preston Prince, there are 11 families at Stonemark receiving rental assistance, through a program previously known as, “Section 8.”

Each family pays 30% of their income towards rent and the government pays the rest.

Prince said, “We receive, around the 25th or 28th of every month, we receive the allocation from the federal government and then wire the transfer funds.”

According to Prince, the Housing Authority runs a check, called a "Metro Scan" to make sure the money being wired is actually going to the rightful owner of a participating property.

But, documents given to KSEE 24 News by the Housing Authority show otherwise.

All of the contracts signed by supervisors at the Housing Authority for Stonemark units list James McConville’s company, Stonemark Asset Portfolio as the rightful owner and payee.

A quick check at the Fresno County Tax Assessor’s Office clearly shows the money is going to the wrong place.

Documents prove neither McConville nor his company legally own any of the 11 units getting tax payer money to rent.

This information is public record, easily accessible to anyone who cares to ask.

When questioned about how this could have happened, Prince simply said, “I don’t know the answer to that.”

In all fairness, McConville seemingly set up a sophisticated scheme, not easily detected.

The true listed owners of the properties never blew the whistle on McConville, never alerted the Housing Authority they were not receiving the payments.

It appears they followed the formula of a typical “straw buyer” by washing their hands of the units after signing the loan documents, trusting McConville to pay the mortgages.

Clearly that is not happening.

8 of the 11 units under the Housing Assistance Program are either in pre-foreclosure, set to go to auction or are already bank owned.

Yet still, the Housing Authority continues sending tax payer money to McConville's company.

Prince said, “We are making payments until we know that there’s definitive proof that there’s an issue here that the payment is going to the wrong person.”

Click on the link to see Carolyn Bruck’s EXCLUSIVE report.