UPPO Update
Three attorneys from TLSG’s legal department will be attending the Unclaimed Property Professional Organization’s Annual Conference in Orlando, FL from March 11th to 14th, 2011. Attendees include Kim Sawyer, TLSG’s President & General Counsel; Mark Warren, Deputy General Counsel and Steve Barry, Associate Counsel. Please look for Kim, Mark and Steve at the Conference.
TLSG Named 8th Top Woman Owned Business
DiversityBusiness.com has selected The Locator Services Group Ltd. as one of the “Top Businesses” of 2012, for the second year in a row. We are proud to announce that TLSG was named the 8th Top Women Owned Businesses in Massachusetts and 115th out of all the Women Owned Businesses in the U.S. Last year, over 750,000 eligible businesses were considered for this recognition. The DiversityBusiness.com “Top Diverse Businesses” are awarded to the top entrepreneurs in the country who are recognized for stimulating economic growth in America.
Unclaimed Property Email Scam
The National Association of Unclaimed Property Administrators (“NAUPA”) has issued a media advisory alerting individuals of an internet scam relating to unclaimed property. Fraudulent emails have been circulating through the country advising people that they are entitled to an inheritance. The email claims to be coming from NAUPA Director, John Smith. NAUPA has confirmed that there is no such person working within the Organization. Once a person responds to one of the emails they are asked to pay a fee to “recover” the funds or they will be prompted to provide additional personal information such as social security number, place of birth or date of birth. This information may then be used to commit identity theft.
Ron G. Crane, Idaho State Treasurer and President of NAUPA stated “As government agencies conduct more business by email, it can be very confusing for citizens. We recommend that people always contact their state unclaimed property office to verify that any communication regarding unclaimed property is indeed legitimate.” If you receive a similar email you should immediately delete it and file a report with the Internet Crime Complaint Center (IC3) online at www.ic3.gov/complaint/default.aspx and the Federal Trade Commission at www.ftccomplaintassistant.gov/. It is important for citizens to understand that NAUPA is a legitimate organization and typically does not contact owners of unclaimed property.
Click here to learn more about NAUPA.
UPPO Holders Seminar
Three attorneys from TLSG’s legal department will be attending the Unclaimed Property Professional Organization’s Holders Seminar, being held in Cambridge, Massachusetts July 25th – 26th. Attendees include Kim Sawyer, TLSG’s President & General Counsel; Mark Warren, Deputy General Counsel and Steve Barry, Corporate Recovery Associate. Please look for Kim, Mark and Steve at the Seminar.
California Unclaimed Property Reaches $6.1 Billion
In 2010, California added $633 million to the state’s unclaimed property account bringing the account total to $6.1 Billion. In an effort to contact the account owners, the state Controller’s Office sent out 1.39 million notices last year, up from 22,000 in 2000. However, despite the state’s efforts, California’s unclaimed property account continues to grow significantly.
-As detailed on www.sfgate.com Home of the San Francisco Chronicle, June 30, 2011.
Insurance Companies Fail to Report Unclaimed Funds
The Florida Office of Insurance Regulation has reached a multi-million dollar settlement with John Hancock Life Insurance Company (“John Hancock”). The Florida Office of Attorney General and The Department of Financial Services conducted an investigation where authorities examined Hancock’s records concerning their use of the “Death Master File.” The Death Master File is a record of all deaths in the U.S. reported to the Social Security Administration. This agreement is the first in the nation directly aimed at resolving issues related to insurance practices and unclaimed property.
“Companies are using the Death Master File to stop company payments for annuities – but do not use this same list to pay beneficiaries of people who have life insurance policies,” said Insurance Commissioner Ken McCarty. It was revealed that there were many instances where John Hancock failed to proactively find beneficiaries and subsequently turn the property over to the state. It is likely that as a result of this investigation and similar ones, being conducted around the country, there will be tens of millions of dollars paid out to beneficiaries nationwide. Additionally, states will benefit from this settlement, since a significant amount of these funds will be turned over to the states as abandoned property.
-As detailed on www.WSJ.com, May 19, 2011, original article by Leslie Scism.
TLSG Receives "A+" Rating from Dun & Bradstreet
TLSG recently received a Past Performance Evaluation rating of 96/100 by Dun & Bradstreet. Dun & Bradstreet’s Past Performance Evaluation is generated by surveying current clients to find out detailed performance ratings for key aspects of the supplier’s performance such as reliability, cost, quality, customer support and responsiveness. Click here to view TLSG’s complete 2011 Past Performance Evaluation.
UPPO Update
TLSG’s President & General Counsel, and Deputy General Counsel will be attending the Unclaimed Property Professionals Organization (UPPO) Annual Conference in San Antonio, Texas from March 6th to 9th, 2011.
TLSG's President Named a 2011 Enterprising Woman of the Year
Enterprising Women Magazine has announced the 2011 winners of their prestigious awards recognizing top women entrepreneurs from around the globe. The Locator Services Group Ltd. is proud to announce President & General Counsel, Kim Sawyer, is a recipient of this year’s award.
The 2011 Enterprising Women of the Year Award winners were selected based on the financial success of their business and their commitment to promote and support women entrepreneurs through mentoring programs and other leadership roles in their community. The 2011 award recipients will be honored this coming March in Boca Raton, Florida at the Enterprising Women of the Year Awards Celebration.
Click here to learn more about the Enterprising Women of the Year Awards.
TLSG Named 11th Top Woman Owned Business
DiversityBusiness.com has selected The Locator Services Group Ltd. as one of the “Top Businesses” of 2011. We are proud to announce that TLSG was named the 11th Top Women Owned Businesses in Massachusetts and 15th out of all the Diverse Owned Businesses in the state. Over 750,000 eligible businesses were considered for this recognition. TLSG was also ranked 349 out of the Top 500 Women Owned Businesses in the country. The DiversityBusiness.com “Top Diverse Businesses” are awarded to the top entrepreneurs in the country who are recognized for stimulating economic growth in America.
Click here to learn more about the DiversityBusiness.com Top 2011 Businesses.
Hawaii Unclaimed Property Collection Highest in Decades
The State of Hawaii is holding more than $17 million in unclaimed property, this year alone. According to Kim Sawyer, TLSG’s President & General Counsel, “It’s one of the ways states are supplementing their revenue. . . The perspective states take is [the unclaimed funds] shouldn’t be a windfall [for] private companies that are holding on to dormant assets. Rather, citizens of states should benefit by state governments having the ability to utilize these funds until the rightful owners come forward.”
-As detailed in the Star Advertiser, January 24, 2011, original article by Kristen Consillio.
Click here to view the full article.
Trying Economy Leads to Increase in State Audits
“As the economy is getting worse, states are finding that conducting abandoned property audits is a good way to supplement their revenues,” said Kim Sawyer, President & General Counsel of The Locator Services Group Ltd. The article states that Texas has collected 127 percent more in unclaimed property this year, than in 2002. Additionally, it is estimated that there is close to $33 billion being held by the state abandoned property offices.
-As detailed in reporternews.com Your Abilene Online, December 6, 2010, Original Article by Jaime Adame.
Click here to view the full article.
An Interview with TLSG’s President and General Counsel on Assessing the Validity of Asset Recovery Firms
Although state abandoned property sites may appear to make it easy to claim abandoned property, states do not always publish all the properties they are holding on their websites. In some cases, the way to maximize your company’s recoveries is to hire an asset recovery firm. However, Kim Sawyer, President & General Counsel of the Locator Services Group Ltd. advises consumers to be wary of the legitimacy of asset recovery firms. When shopping for an asset recovery firm, Attorney Sawyer advises consumers to check references as well as check to see if the firm is a member, in good standing, with the Better Business Bureau.
-As detailed in reporternews.com Your Abilene Online, December 4, 2010, original Article by Jaime Adame.
Click here to view the full article.
Improper Payment Elimination & Recovery Act
On July 22, 2010 President Obama signed the Improper Payment Elimination and Recovery Act in an effort to significantly reduce and recover the $110 billion made in improper payments in 2009. This bill was passed unanimously by the House and Senate and is designed to cut waste, fraud and abuse from improper payments by federal agencies. The bill was passed shortly after President Obama issued a presidential memorandum on March 10, 2010 which presented strategy to reduce improper payments through boosting transparency, holding agencies accountable and creating strong incentives for compliance.
The presidential memorandum instructs federal agencies to seek private-sector recovery audit firms to assist in recapturing improper payments due back to the federal agencies. President Obama has also expressed his support for pending legislation to expand the ability of government agencies to fund the audits with recaptured payments. This presents a positive situation for government agencies because they are not incurring any out of pocket cost, as the fee charged by the private firm for the recovery audit is taken directly from the funds recovered.
Click here to view White House press release.
Nevada Uses Residents' Abandoned Property to Fund $800 Million Budget Shortfall
-As detailed in the Las Vegas Review-Journal, June 24, 2010, original article by Ed Vogel.
Click here to view full article.
Florida Urges Residents Affected by Oil Spill to Search for Abandoned Property
The Florida Bureau of Unclaimed Property has announced they will begin making efforts to return unclaimed property to residents affected by the Deepwater Horizon Disaster. Residents with more than $100 in unclaimed property, who are living in polluted counties, will be receiving notices in the mail informing them how to claim their property. “I encourage Gulf residents and businesses to visit www.FLTreasureHunt.org today to see if the state is holding any unclaimed property that may help them weather the economic effects of this disaster” Florida CFO Alex Sink.
-As detailed by MyFloridaCFO.com, June 22, 2010, article contact: Kevin Cate.
Click here to view full article.
Massachusetts' Residents May Lose Rights to Recover Unclaimed Funds Held by Cities, Towns & Districts
On May 10, 2010 the Commonwealth of Massachusetts Senate amended a House Bill, which changes the procedure for Massachusetts cities, towns and districts to report their unclaimed property. Under the amendment, Massachusetts cities, towns and districts are not required to report or turn over their unclaimed property to the Commonwealth. After a specific notification process is followed and a relatively short period of time has passed, the original payees for whom the funds were intended, whether businesses or individuals, forever lose their rights to claim their monies. The Massachusetts cities, towns and districts who issued the payments are permitted to keep the funds once the specified amount of time has passed.
Click here to view Senate Bill #2424
Blog Addresses Difficulty in Locating Unclaimed Funds
The State of North Carolina is reportedly holding $700 million in unclaimed funds belonging to residents, according to the North Carolina Department of the Treasurer. The biggest hurdle to claiming this property is insufficient information, which greatly limits a person’s ability to search for their unclaimed property. When searching online for unclaimed property, people often cannot determine the legitimacy or accuracy of a website that appears to provide information about unclaimed funds. Those who are not specifically educated in finding and recovering unclaimed funds are often frustrated in their attempts. The blog suggest that using an unclaimed property expert may ultimately lead the owners of unclaimed property to the greatest possible recovery of their funds.
-As detailed on ColleenGutshall.BlogEb.com , May 25, 2010, original post by Daniolatixy.
$10.5 Million in Unclaimed Property Tax Refunds Transferred to a California County.
Over the past two years more than $10.5 million in property tax refunds have been left unclaimed by San Bernardino County residents. Eligible recipients have four years to claim their refunds once they are notified via mail. After the four year time period the money is transferred to the County’s general fund.
In past years the County would still re-issue the refund checks if an owner came forward and tried to claim it after the four year time period. However, last year the County Counsel decided that taxpayers are no longer eligible to reclaim the tax refunds once the money was transferred into the general account.
-As detailed by SBSun.com, December 12, 2009, original Article by Joe Nelson.
Ohio Supreme Court Ruling: Sogg v. Zurz
The Supreme Court of Ohio ruled, in a class action lawsuit, that confiscation of interest by the State on unclaimed funds, deposited with the State for safe keeping, is unconstitutional.
-As detailed by UPPO.org, November, 30 2009, information prepared by Ed Scarborough.
Click here to view full article.
Arizona Shortens Dormancy Period to Compensate for Budget Shortfall
Arizona state senators have recently voted to change the dormancy period for uncashed travelers checks from 15 years to 3 years. The motive for reducing the dormancy period appears to be a $2 billion state budget shortfall. The shortened abandonment period could potentially generate an immediate $2.5 million for the State.
-As detailed by the Arizona Daily Star Online, November 11, 2009, original article by Howard Fischer.
Click here to view full article.
How to Avoid Escheat
State escheat laws were originally created to serve as a “lost and found” for unclaimed monies. However, recently, to cover budget shortfalls, states have been passing new escheat laws shortening the time funds sit unclaimed before they are turned over to the states. “Things are just getting escheated, getting liquidated, and these statutes that are supposed to be for preserving assets for owners, who have forgotten about them, have turned into revenue generators for the state,” says Attorney Jennifer Borden, of Holland and Knight, a well-respected expert in abandoned property law.
The best course of action in avoiding escheatment is to stay in contact with the institutions holding your property. Keep your address and telephone numbers up to date and open all of your mail. It is also important to cash dividend checks no matter how small. This will prevent your accounts from turning up on an auditor’s ledger. The final thing to remember is that it is very important to keep a list of all your accounts and account numbers. In the event you pass away unexpectedly this will ensure that your property will go to your heirs and not state auditors!
-As detailed by walletpop.com, October 23, 2009, original article by Claes Bell.
Click here to view full article.
States Suing Federal Government for $16.7 Billion in Unclaimed Bonds
70 years ago the federal government issued hundreds of billions of dollars in savings bonds to finance WWII efforts. These bonds were to be paid back in 40 years. As the years have passed $16.7 million dollars in bonds has gone unclaimed and remains in the federal government’s possession.
$16.7 billion in unclaimed funds would be a significant source of revenue to whoever is in possession of these monies. Six states have begun a lawsuit against the federal government to get these funds. Arguments are set to begin in the upcoming weeks at the New Jersey District Court, where the lawsuit was originally filed.
-As reported in the LA Times, October 18, 2009, original article by David Cho.
Click here to view full article.
7 OTHER Places to Find Your Unclaimed Money
Woman’s Day Magazine recently reported, “Over $32 billion in unclaimed property is being safeguarded by state treasurers and agencies. . . In state treasuries alone, 1 in 10 people are owed money from places like banks, former employers and unclaimed tax refunds.” Below are seven places you probably never even thought to look for your unclaimed money.
1. FDIC: If you have ever belonged to a bank that has closed or been bought out by another bank there may be money owed to you. If you did not “claim” your funds when the bank closed it is likely that they are still available for you to get back. Visit this site to search for possible unclaimed funds owed to you: FDIC.
2. National Credit Union Administration: When credit unions with federal insurance are liquidated the National Credit Union Administration is responsible for paying the share accounts to members. In this transition a lot of money goes unpaid. If you have ever been a member of a failed credit union call the NCUA Asset Management and Assistance Center at 512-231-7900.
3. US Department of Housing and Urban Development: If your mortgage is FHA-Insured you could be eligible for a government refund. To see if you are eligible visit, US Department of Housing.
4. Pension Benefit Guaranty Corporation (PBGC): If you have worked for a company that went under you could be owed money from the company’s pension plan. Search here for your name.
5. IRS: If you never received your tax return the IRS most likely still has it on file. You can go to Irs.gov to claim your money.
6. State Unclaimed Property: Unclaimed property includes inactive accounts in financial institutions, saving or checking accounts, uncashed payroll checks, certificates of deposit, stocks and more. Go to missingmoney.com to do a free search for money that might be due to you.
7. Government Assistance: You may qualify for government assistance and not even know it. If you have been affected by a disaster or disability, need help with childcare, healthcare, tax or living assistance you should click here and take the questionnaire.
-As detailed in Woman’s Day Magazine, October 2, 2009, original article by Crystal Tate.
Click here to view full article.
Unclaimed Funds Bountiful in Tennessee
According to WSMV Nashville almost all of Tennessee’s 95 counties are due unclaimed funds. The state sends notifications of money owed every year, yet funds are still left unclaimed. According to this report, Davidson County has the largest amount of unclaimed money, which totals $9,458.96.
- As detailed by WSMV Nashville, October 6, 2009, original article by Marc Stewart.
Click here to view full article.
Congress's View on Unclaimed Funds Recovery
As a result of the recent Congressional expenditure of billions of dollars in federal monies directed at keeping companies solvent, the government is now closely scrutinizing companies' finances and practices. This scrutiny has revealed that many companies receiving bailout money actually have millions of dollars in unclaimed funds, to which they are entitled, but have consistently failed to claim.
US Representative Barney Frank, Chairman of the House Financial Services Committee, is demanding that such companies recover their unclaimed funds. Chairman Frank believes that if these companies were claiming their monies, there may not be a need for them to take federal bailout money. Chairman Frank is now calling for a formal Congressional investigation into the failure of businesses to recover unclaimed funds, stating he will be insisting "they tell us what their whole systems [for recovering unclaimed funds] are, how did this happen, and more importantly, how do they stop it from happening in the future."
-As detailed in a March 2009 investigative report featured on Fox 7 Miami and NBC 7 Boston.
Click here to view full article.
Public Information Requests & Recovery of Unclaimed Funds
An increase in requests, by private companies, for public financial information in California has created a burden for the state. Merced County’s State Auditor, Stephen Jones, points out that it takes a lot of time and research to provide companies and individuals with information regarding unclaimed funds.
Edward Harrington, President of the State Association of County Auditors thinks that private asset recovery firms are a scam because the fund owners are perfectly able to recover the money themselves.
Kim Sawyer, President of The Locator Services Group, disagrees with Harrington. Sawyer highlights the fact that counties in California receive more requests for information on unclaimed checks because the checks are escheated to the state after only 3 years. “A lot of counties are making a lot of money this way, and it rightfully belongs to someone else,” said Sawyer.
Sawyer’s company provides a valuable service because some counties in California don’t make enough of an effort to locate the payees of unpaid checks and they put up as many hurdles as they can to keep the money, once someone has come forward to claim it. Sawyer comments; “its not just identifying where the money is, it’s helping recover it too.”
-As detailed in CalAware Weekly, September 14, 2007, original article by Corinne Reilly.
