Two Roseville residents each face 20 years in federal prison and up to $250,000 for operating a loan modification scam that primarily targeted distressed Hispanic homeowners (affinity fraud, ethnic fraud).
Martin Wayne Flanders, 50, and Ligia Sandoval Spafford, 48, pleaded guilty to mail fraud according to U.S. Attorney Benjamin Wagner.
According to court documents filed by prosecutors, between 2008 and 2010, Flanders charged clients upfront/advance fees and promised to provide the victims loan modifications, mortgage loan audits, credit repair, debt relief, bankruptcy filings, and an option to sell their homes to investors, who would rent back to them and offer a later re-purchase. Victims were found by advertising in Spanish-language TV and magazines. They also had air time on the Bay Area Spanish-language Christian radio station known as Radio Luz, where Sandoval advertised the “services” she and Martin Flanders offered.
The charges in this case were numerous. Read the original article in the Central Valley Business Times to learn more details.