3 arrested in alleged loan modification scam

SACRAMENTO, Calif. (AP) — 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.

According to Harris, the three collected fees of up to $2,500, but never performed the promised services.

It’s believed hundreds of people were victimized.

The three attorneys were being held on bail of $50,000 each. Attempts to reach them for comment, or to determine if they had hired legal representation, were unsuccessful.

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