Attys Arrested Over Calif. Loan Modification Scam

Law360, New York (March 8, 2012, 7:53 PM EST) -- Three attorneys were arrested Thursday for their roles in an alleged scheme to bilk Sacramento homeowners out of thousands of dollars in loan modification fees for services that their law firm never fulfilled.

Co-owners of Flahive Law Corp. Gregory Flahive, 39, and ex-wife Cynthia Flahive, 41, were arrested along with firm managing attorney Mike Johnson, 42, on 19 felony counts including grand theft, conspiracy and false advertising, according to a statement by the California Attorney General’s Office.

The attorneys allegedly took up to $2,500 in fees...
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