Kenneth Manuel Martin, formerly of Modesto, was recently arrested at an airport in Houston for alleged Social Security disability fraud and investment fraud. The arrest was the result of a warrant for 63-year-old Martin that was found by Customs and Border Protection agents at the airport.
Martin has been accused of running a real estate investment scam that lured investors in with lucrative opportunities funding mortgages in Guatemala. It has been reported that Martin made false statements regarding the longevity of the investment, and he is also accused of making false promises to investors about the supposed high returns and stable interest payments the investment would bring.
Although investors were allegedly promised that they would have the option to pull out or reinvest after the mortgages matured, investors who asked about the absent monthly payments or wanted to pull out were put off with conflicting explanations from Martin.
According to officials, Martin has been charged with wire fraud and theft of Social Security benefits. It is alleged that Martin claimed to have been out of work since becoming disabled in December 2005. It is alleged that he ran the real estate investment scam during the period he was collecting disability benefits.
At the time of this article, Martin was in custody and awaiting an appearance in the U.S. District Court in Houston.