Roseville Couple Arrested for Fraud Scheme Targeting Distressed Homeowners

A Roseville couple was arrested today, Oct. 1, on charges that they allegedly orchestrated a fraud scheme that targeted distressed homeowners, according to the U.S. Department of Justice.

Martin Wayne Flanders, 48, and Ligia Sandoval Spafford, 46, both of Roseville, were arrested today and expected to make their initial court appearances today in Sacramento.

Flanders was also charged with conspiracy to commit bankruptcy fraud for filing sham bankruptcy petitions as part of the fraud scheme, according to the department.

The U.S. Department of Justice released the following information about the arrest:

According to court documents, Flanders charged clients advance fees in exchange for a number of financial services, including loan modifications, mortgage loan audits, credit repair, debt relief, bankruptcy filings, and a program to sell homes to “investors” with a rent-to-own option.

Flanders and Sandoval marketed these services to economically distressed homeowners with particular emphasis on those who were Spanish-speakers. During a radio program aired twice weekly by a Bay Area Spanish-language Christian radio station, Radio Luz, Sandoval promoted the services she and Flanders offered. Flanders also advertised on a Spanish-language television station, Univision, and in Spanish-language magazines.

About 98 percent of Flanders’s and Sandoval’s clients were of Hispanic descent, some of whom spoke little to no English. Sandoval speaks Spanish; Flanders does not.

The investigation to date has identified 25 to 30 individuals who paid for services and did not receive them for a total loss of approximately $120,000. Some homeowners who were not able to obtain relief were foreclosed upon by their lenders.

The two face a sentence of up to 20 years in prison for the mail fraud charges, and Flanders could face up to five years in prison for bankruptcy fraud, if convicted.

This case is the product of an extensive investigation by the Federal Bureau of Investigation. Assistant United States Attorney Todd A. Pickles is prosecuting the case.

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