Posted by William Bronchick on March 23, 2011 at 12:14:07:
In Colorado there is very little regulation of escrow
companies, unless there are attorneys or a title company
involved.
Escrow account - misappropriation - Posted by Andy
Posted by Andy on March 22, 2011 at 19:39:06:
Is there any criminal law that prohibits an escrow agent from spending money out of one individuals escrow account as long as the money is replaced eventually? I’ve heard that someone I’m doing business with is doing just that and tapping other accounts to make payments when due. I’m concerned that I may be involved in some type of Madoff pyramid scheme.
Re: Escrow account - misappropriation - Posted by Thomas K. Standen
Posted by Thomas K. Standen on March 23, 2011 at 17:27:16:
As a note servicing company if we were to do that our license would be revoked and more then likly we would have criminal charges brought by the local district attorney
Re: Escrow account - misappropriation - Posted by BTI
Posted by BTI on March 23, 2011 at 10:06:51:
Andy
The short answer is these are a form of trust accounts and yes he is violating the law without getting permission from the parties involved to do anything with that money other then what was intended.
And if he is an escrow agent he definitely should know better, and if he doesn’t he will have plenty of time to study for his career while he waits for his lawyers to save his a&&.
Great defense, but your honor he was going to pay the money back, pinkie swear!!! Which leads to the question of why was money removed in the first place, and where is the shortage that required this check kiting, did his horse that couldn’t lose finish last at the derby and now the acoount that he borrowed his bet from has to be covered for some reason?
Re: Escrow account - misappropriation - Posted by William Bronchick
Posted by William Bronchick on March 23, 2011 at 10:02:11:
Depends on state law, but generally borrowing from an
escrow account is generally illegal.
Re: Escrow account - misappropriation - Posted by Andy
Posted by Andy on March 23, 2011 at 12:12:12:
Thanks for the answers. Conceptually, it certainly makes sense.
Anyone have any ideas on the specific Colorado laws that may be being violated or the penalties involved? I’d like to have all the info if I try to discuss with this person.