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The first thing you would want to do is hire a local attorney to file a Lis Pendens in the case and then intervene in the closing so that your interest in the funds is protected. The attorney may also want to discuss filing an injunction to prevent the sale until this is straightened out. You would be entitled to recover the $10k and also the amount of the attorney's fees you incur from their actions but there has to be a judicial finding as to the attorney's fees which may not be possible by the time of closing so an injunction could keep the money tied up until that determination could be made.
Then, after speaking with the attorney of course, you would likely want to contact the police and speak to them about filing criminal charges. The exact charges will depend on how everything played out and whether she somehow used her office to facilitate the "fraud" but assuming she didn't then the likely charges would be fraud, forgery, and filing a false government record. Unfortunately, the site I use to look up the W VA criminal codes doesn't appear to be working right now so I can't give you the specific statute numbers at this time but these names will be enough to get the police started.