Florida Escrow Company Abruptly Closes Down; $ Millions May Be Missing

WPTV Channel 5 in West Palm Beach, Florida is reporting on the abrupt closing of Vero Beach escrow company, Coastal Escrow Services. Reportedly, a fax went out from the company to area real estate agents last week stating that it ceased doing business as an escrow company and not to send them any more deposits. The company is said to have managed millions of dollars at any particular time and their is speculation that there may be people who will be taking a severe financial beating if the worse comes to pass and the funds are not accounted for. Vero Beach Attorney Ira Hatch, who owns the company, could not be reached for comment. For more on this part of the story, see Real Estate Fraud.

In addition, TC Palm is reporting that:

• "Two lawsuits have been filed in Indian River County Circuit Court against Ira C. Hatch's defunct firm Coastal Escrow Services Inc. seeking in excess of $700,000. The lawsuits claim that the company has refused to return clients' deposits and bounced checks."

There may be hundreds of victims missing deposits placed with Hatch's escrow business; the missing deposits are being estimated to be in excess of $3 million. For more on this part of the story, see Defunct escrow business owner Hatch sued for deposits.

For copies of the lawsuits, see:

• Michael Thorpe Real Estate Inc. vs. Coastal Escrow Services, Inc. (class action status sought),
• Allen vs. Coastal Escrow Services, Inc., et al.

For related stories, go here for questions raised over attorney Ira Hatch's past; or go here for investigation into Coastal Title Services by the Florida Department of Financial Services and The Florida Bar, or here for a number of related issues.

Go here for stories on other alleged escrow agent mishandling of funds. sneaky slick escrow agents alpha