HAZLETON, LUZERNE COUNTY (WBRE/WYOU) – Hazleton Police Thursday arrested a local landlord who has been the subject of an Eyewitness News I-Team investigation.

Margarita Murarescue was arrested Thursday in connection with allegations she rented properties condemned by the city to would-be tenants, then refused to return thousands of dollars once they learned of the problem.

Lead I-Team Investigator Andy Mehalshick first began reporting on the problem August 18th when he was contacted by suspected victims of the rip-off. In all, at least three victims of the scheme contacted the I-Team and Hazleton police.

They said they had signed leases or made deposits to Murarescue only to learn the properties had been condemned because the utilities had been shut-off for not meeting city codes.

Murarescue told Eyewitness News August 24th she didn’t believe she had done anything wrong, although admitting she did take a few thousand dollars from potential tenants as payment.

Police Chief Brian Buglio gave Murarescu a deadline of last Friday to return the money -$3,200 dollars-to the people who never could move into the  homes because they were condemned.

This is a developing story, check back later for additional details.