CLARKSVILLE, Tenn. -- A scandal involving a local home builder in Clarksville has some people wondering if they'll lose their homes.

Video: Home Builder, Title Employee Accused Of Bilking Clients

The Channel 4 I-Team reported on Wednesday that a lawsuit claims a developer and title company employee duped residents out of money and that some homeowners could pay a huge price for the alleged fraud.

Residents who have bought a house have written big checks at closing to pay off the construction lien from the bank.

A fraud lawsuit in Clarksville claims that some of the checks people wrote never made it to the bank.

Residents were calling the courthouse on Wednesday about one of the biggest developers in Montgomery County being sued on fraud claims.

"They want to know if there's liens on their property," said register of deeds Connie Bell. "We just advise them to get in touch with their attorney."

The I-Team reported that Bill Mace, whose housing developments are all over the city of Clarksville, is being sued and accused of fraud of more than $1 million by Stewart Title.

Stewart Title accuses Mace and one of Stewart Title’s own employees of secretly depositing funds into Mace's own account instead of paying off loans to banks.

The employee of Stewart Title has since been fired.

Court filings state that the funds were deposited into Mace's business accounts, which resulted in liens not being paid off.

In court filings, Mace is accused of using the money to further his construction projects.

Mace and the Stewart Title employee are accused of covering their tracks by creating false documents that show the loans were paid.

Mace threw members of the I-Team off his property before they could ask him what this means for the people he built homes for.

Homeowners are now finding out that their brand new homes may have liens on them and that banks may foreclose. The title company is also out more than $1 million.

"Everyone that is owed money is interested in getting their money back," said Bell.

If the banks didn't get their money, and the homeowners didn't buy title insurance, then the banks could foreclose on the homes, the I-Team's Jeremy Finley reported.

The homeowners thought they were buying their homes free and clear.

There could be a ripple effect from the incident.

Mace has since filed for bankruptcy, so it's unclear how many houses under construction could be delayed and how many people could lose their homes if the banks don't get paid.

Mace and the Stewart Title employee had no comment on this story.

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