Two men accused of operating foreclosure rescue scam

Two men were indicted on theft charges Friday after authorities accused them of operating a foreclosure rescue scam in Las Vegas.

William Vargas and Michael Sinclair each face four counts of theft by material misrepresentation and one count of theft of a person age 60 or older.

The indictment claims the men operated a business called Federal Housing Aid since February 2007. The company, which offered loan modification services to help homeowners avoid foreclosures, is accused of soliciting victims in Nevada from a call center in the Philippines.

Vargas and Sinclair are accused of charging the victims between $899 and $1,500 in fees and offering a 100 percent money-back guarantee if the foreclosure could not be stopped.

The defendants failed to provide the services for which they were paid and failed to provide refunds as promised in their advertisements, according to the indictment.

An arrest warrant has been issued for Sinclair, whom authorities believe fled to the Philippines. Vargas is scheduled to appear for an arraignment June 23 in District Court.

The case was filed by prosecutors assigned to the Nevada attorney general's mortgage fraud task force.