A Gulfport man was arrested after defrauding a man of more than $30,000 in escrow payments, causing the victims home to go into foreclosure, officials said.
Michael Schaffer, 60, was charged by the Pinellas County Sheriffs Office with scheme to defraud.
In February 2025, the victim took out a second mortgage on his home with the understanding that he would receive $40,000 in escrow, according to a Sheriffs Office report.
At closing, the victim said he was pressured into having the escrow money sent to Chairman Title, which was owned by Schaffer.
Schaffer told the victim the money would be released to him as needed after repairs to his home were completed, the report stated.
However, investigators said the funds were sent to Schaffers personal account.
Over the next several months, the victim repeatedly requested his money from Schaffer.
In March, Schaffer gave the victim $5,220.
The victim continued to request the remaining $34,780, but Schaffer offered excuses for why the money could not be released, according to the report.
Schaffer eventually cut off all communication with the victim.
Schaffer also refused to respond to the victims mortgage lender regarding the escrow funds.
As a result, the victim was unable to make his mortgage payments, and his home went into foreclosure, according to the report.
