How Do I Get My Money Back From An Escrow Company
Full Question:
Answer:
Restitution may be ordered for someone convicted of fraud, theft, or a related charge in relation to misuse of escrow funds (please see the statute below). A civil case might also be filed, based upon fraud, breach of contract, or other claims, in which money damages can be claimed rather than a criminal penalty.
Each escrow agent must file with the Commissioner a surety bond of at least $25,000. The bond is intended to be used to pay to the state or any person any amount that is due to the state or such person under the provisions of the Escrow Law. The amount of the bond required may increase up to a maximum of $50,000 depending on the escrow liability of the company. The bond must be increased by $5,000 for each additional licensed office.
I suggest soliciting help from all available sources, including, but not limited to, the state Department of Insurance, Department of Real Estate, Department of Corporations, legislators and representatives, and escrow associations. Please see the contact information at the links below. If you are unable to afford an attorney, you may be able to find one who will accept the case on a contingent fee basis. I suggest calling the local bar association for a referral.
The following are CA statutes:
17414.
(a) It is a violation for any person subject to this
division or any director, stockholder, trustee, officer, agent, or
employee of any such person to do any of the following:
(1) Knowingly or recklessly disburse or cause the disbursal of
escrow funds otherwise than in accordance with escrow instructions,
or knowingly or recklessly to direct, participate in, or aid or abet
in a material way, any activity which constitutes theft or fraud in
connection with any escrow transaction.
(2) Knowingly or recklessly make or cause to be made any
misstatement or omission to state a material fact, orally or in
writing, in escrow books, accounts, files, reports, exhibits,
statements, or any other document pertaining to an escrow or escrow
affairs.
(b) Any director, officer, stockholder, trustee, employee, or
agent of an escrow agent, who abstracts or willfully misappropriates
money, funds, trust obligations or property deposited with an escrow
agent, is guilty of a felony. Upon conviction, of an offense under
this section or similar offenses specified in Chapter 4 (commencing
with Section 470), Chapter 5 (commencing with Section 484), or
Chapter 6 (commencing with Section 503) of Title 13 of Part 1 of the
Penal Code, the court shall, in addition to any other punishment
imposed, order the person to make full restitution, first to the
escrow agent and then to Fidelity Corporation, to the extent it has
indemnified the escrow agent. Nothing in this section shall be
deemed or construed to repeal, amend, or impair any existing
provision of law prescribing a punishment for such an offense.
(c) Any person subject to this division who knows of a person's
involvement in an abstraction or misappropriation of money, funds,
trust obligations, or property deposited with a licensed escrow agent
shall immediately report the abstraction or misappropriation in
writing to the commissioner and to Fidelity Corporation. No person
shall be civilly liable for reporting as required under this
subdivision, unless the information provided in the report is false
and the person providing false information does so with knowledge and
malice. The reports filed under this section, including the
identity of the person making the filing, shall remain confidential
pursuant to state law.
