Monday, April 11, 2011

Escrow Agent Arrested, Charged With Failing To Forward To Mortgage Lender House Payments Collected From Unwitting Homeowner Now Facing Foreclosure

In El Paso, Texas, KTSM-TV Channel 9 reports:
  • There are major developments on a Trouble Shooters story. The County Attorney's Office has arrested Laura Knight, the owner of First Knight Escrow. Our Trouble Shooters team got several complains from people who did business with her. One woman, Yadira Castro, was facing foreclosure but didn't understand how, since she had been making her mortgage payments through her escrow company, First Knight Escrow.(1)
  • We had previously talked to Knight, who told us it was all a misunderstanding. But [Friday] afternoon she was arrested on a theft by check charge.

Source: Business Owner In Trouble Shooters Report Arrested.

For story update, see Update on El Paso Woman Facing Foreclosure:

  • Richard Roman is Castro's attorney. “I've filed a lawsuit. there is a restraining order, potentially pertaining as well, to hold off on any foreclosure sales until we get this matter resolved."
  • Roman said he's also representing another person, who also claims to have been defrauded by Knight. He says her arrest will affect his case in court. “If the money was misappropriated... it definitely plays into how I feel my client has been affected by the funds not reaching the appropriate place."
  • And, Laura Knight's legal entanglements don't seem to end there. The reason for her arrest last week, was “theft by check”, in relation to Leonor Armendariz's case. That woman claims Knight had stolen over $100,000 from her.

(1) For earlier story, see Unwitting Homeowner Suspects Monthly House Payments To Escrow Company Are Mysteriously Disappearing, Leaving Her Facing Imminent Foreclosure.