Ohio AG Brings Civil Charges Against Payment Servicing Firm For Allegedly Ripping Off Homeowners' Property Tax, Insurance Escrow

From the Office of the Ohio Attorney General:

• An Illinois-based company defrauded Ohioans out of thousands of dollars and Ohio Attorney General Richard Cordray is seeking restitution and civil penalties in Franklin County Common Pleas Court. Cordray said that the company and its owners, Derek C. Lurie and Steven Lurie, claimed that they would provide “escrow” services for their customers to pay property taxes or homeowner insurance but collected the money from consumers and never made the payments on their behalf.

• “Ohioans who contracted with this company lost thousands of dollars that they had set aside to pay taxes and insurance premiums,” said Cordray. “In the end, not only were their taxes and premiums not paid, but they had to come up with additional money out-of-pocket.”

• According to the lawsuit, American Escrow entered into contracts with consumers to provide escrow services and to pay for property taxes and/or homeowner’s insurance each year. They divided the approximate annual amount by 12 payments, which they then collected each month from consumers. Consumers were charged a one-time set up fee of up to $250 and a monthly service charge up to $6.50.

• The lawsuit alleges that the company stopped making payments for some customers in the fall of 2008 but continued to collect money through March 2009. The Attorney General’s office has received 89 complaints to date against American Escrow from Ohioans who said they lost money.

For the Ohio AG press release, see Escrow Company Ripped Off Ohioans, Cordray Says.

For the lawsuit, see State of Ohio v. American Escrow LLC, et al.