Arrest Made in Las Vegas Foreclosure Rescue Scam

State officials in Nevada have arrested William Vargas, one of three defendants who allegedly operated a foreclosure rescue scam in Las Vegas beginning in February 2007. His business was operated under the name Federal Housing Aid. Two additional defendants are still at large with warrants issued for their arrests: Paula Luna is believed to be in California and Michael Sinclair has reportedly fled to the Philippines. The alleged scheme involved the collection of upfront fees for the purpose of assisting the victims with avoiding foreclosure on their homes. The suspects allegedly charged the victims between $899 and $1,500 for foreclosure rescue services and offered a 100% money back guaranty, claiming their company would refund the money if the foreclosure could not be stopped. Investigators working for the attorney general's Mortgage Fraud Task Force arrested Vargas.