NewsWFLA News Channel 8October 25, 2026Hillsborough County
Victim's house foreclosed after Pinellas County man defrauds over $30k escrow funds: arrest report
Photo: WFLA News Channel 8
A Seminole man was arrested on Monday after deputies said he defrauded a homeowner of more than $30,000 in escrow funds, leading to the victim's house going into foreclosure. According to the Pinellas County Sheriff's Office, the suspect diverted second-mortgage escrow money into his personal account and cut off communication after releasing only a small portion.
Read the full story at WFLA News Channel 8Why It Matters
A local homeowner lost his house to after funds intended for home repairs were allegedly diverted and withheld by a title company chairman.
Key Facts
- Michael Jay Schaffer, 61, was arrested on Oct. 19, 2026, on one count of scheme to defraud $20,000 to $50,000.
- The victim took out a second mortgage on his home in February 2025 with $40,000 expected in escrow.
- Escrow funds were sent to the suspect's personal Money Market account instead of his business account.
- Schaffer released only $5,220 of the funds in March 2025 for home repairs before cutting off communication.
- The suspect refused to give the victim the remaining $34,780 or respond to the mortgage lender.
- The victim's house went into foreclosure because he could not make his mortgage payments due to the withheld funds.
Who's Mentioned
locationSeminole“City in Florida where the arrest took place.”locationTampa Bay“Regional area for top headlines.”OrganizationPinellas County Sheriff's Office“Investigated the fraud scheme and arrested the suspect.”PersonMichael Jay Schaffer“Chairman of a title company accused of diverting escrow funds.”other61“Age of Michael Jay Schaffer.”