Sunday, March 11, 2012

3 arrested in alleged loan modification scam

Three Sacramento-area attorneys have been arrested for running what prosecutors say was a loan modification scam that allegedly bilked homeowners out of thousands of dollars. Prosecutors say Cynthia Flahive, Gregory Flahive and Mike Johnson were arrested and booked Thursday on a series of counts including grand theft by false pretense, conspiracy and false advertising. California State Attorney General Kamala Harris says through their Folsom-based Flahive Law Corp., the three ran television and radio ads promising to provide loan modification services for homeowners facing foreclosure, as well as tax relief and credit card modification.


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