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Homeowners Repaid After Escrow Scheme

State Sends Checks To Victims

POSTED: 10:52 am EDT July 30, 2010

Dozens of homeowners are receiving restitution checks after being defrauded by an escrow company that shut down last year, officials said Friday.

About 75 homeowners in Boone, Johnson, Hancock and Marion counties were among those who were forced to pay late fees after property tax and insurance bills were not paid by Chicago-based American Escrow, 6News previously reported.

"Checks were mailed to victims this week, and on Monday, Attorney General Greg Zoeller will announce the total amount of restitution paid to Hoosier homeowners," said Molly Butters, public information officer for the attorney general.

As part of the mortgage deals, homeowners made payments to American Escrow with the understanding that it would pay property taxes or insurance bills.

The company stopped making payments in 2009, citing financial problems. Many homeowners were not made aware of the problem until they began receiving late payment notices from county treasurer offices.

The restitution will be funded by penalties and fees paid by financial institutions that violate Indiana law.

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