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Roseville pair selling loan modification help charged w/ fraud

2:34 PM, Oct 1, 2012   |    comments
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SACRAMENTO, CA - A Roseville couple was scheduled to make their first court appearance Monday after their arrests on allegations they defrauded loan modification and foreclosure victims.

Martin Wayne Flanders, 48, and Ligia Sandoval Spafford, 46, have been accused of mail fraud for a scheme targeting distressed homeowners, said Lauren Horwood, spokeswoman for the U.S. Attorney's Office, Eastern District of California. Flanders is also looking at conspiracy to commit bankruptcy fraud for submitting false bankruptcy petirions as part of the scheme, according to the federal complaint.

Federal prosecutors allege Flanders and Spafford charged victims fees for services such as loan modifications, credit repairs, debt relief, bankruptcy filings and a rent to own program. The couple marketed their services in Spanish-language media to Hispanics, many of who didn't speak English or very little English. More than two dozen clients of the couple didn't receive the services for which they paid. Their loss totalled approximately $120,000.

The complaint says some homeowners who did not receive the help Flanders and Sandoval offered in exchange for fees had their homes foreclosed.

Horwood says Flanders and Spafford face sentences of up to 20 years in prison on the mail fraud charges. Flanders could receive up to five years in prison for bankruptcy fraud


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