A local escrow officer was arrested after Metro Fraud investigators say she pocketed more than $500,000 in escrow funds. Metro says this latest case is just the tip of the iceberg in what they believe will be a deluge of mortgage fraud cases in the weeks and months ahead.

Metro say this is yet another ripple effect of Nevada’s worsening foreclosure crisis.

During a news conference Wednesday afternoon, Metro Fraud investigators said they are starting to see a significant increase in the number of victims who have been ripped off in foreclosure scams.

Police arrested Sheila Katherine Williams on Tuesday for her alleged role in a scheme to steal $568,000 from a valley lending institution.

But Metro says the victims of these scams are usually desperate homeowners — looking to avoid foreclosure by unknowingly quit-claiming their house to a con-artist who agrees to make payments but never does.

It can take several months to realize what has happened, making it too late to recover.

Metro says they’re currently cross training all of its fraud investigators to handle potential mortgage fraud. And the department even plans to conduct its own undercover sting operations to crack down on the fraud scam artists who target homeowners and businesses in financial distress.

If you believe you have been targeted in a foreclosure rescue scam metro urges you to call 828-3285.

This entry was posted on Wednesday, January 16th, 2008 at 3:49 pm and is filed under Fraud. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.