Up-to-date News Regarding Unclaimed Property and Corporate Compliance


Oklahoma Lawsuit Alleges Ponzi Scheme

Photo by smokedsalmon on FreeDigitalPhotos.netOklahoma attorney Jerry Fent has filed a lawsuit in Oklahoma County District Court alleging that the state is in effect operating a Ponzi scheme as it commonly uses unclaimed property funds for government operations. Attorney Fent is an activist, with Oklahoma cases challenging the oil and gas tax law, state pension board, capitol bonds, and the state budget.

West Virginia Supreme Court Rules Against Life Insurers

Court OrderInsurance companies have been the subject of intense scrutiny by state unclaimed property administrators over the industry's historic asynchronous use of the Social Security Death Master File and similar databases to stop payments on annuity contracts while not using the same databases to determine that an insured under a life insurance contract may have died, and thus triggering a payment obligation.

Delaware Senate Introduces SB 141 on Unclaimed Property

Update June 29, 2015: SB 141 was passed by the Senate on June 18 and sent to the House. The bill was then sent to the House where it was assigned to the Economic Development/Banking/Insurance/Commerce Committee. The Committee then considered and reported the bill out of Committee on June 25.

Update June 18, 2015: SB 141 was reported out of the Banking and Business Committee, with a vote of 2 in favor and 2 on the merits, on June 17.

Delaware Hit With Another Lawsuit Challenging Audit Process

Photo by smokedsalmon on FreeDigitalPhotos.netPlains All American Pipeline, LP ("Plains"), a Delaware limited partnership formed in 1998, has filed a lawsuit against Delaware, seeking a declaratory judgment and injunctive relief from the state initiated unclaimed property audit.

New York Publishes Proposed Regulations for Payroll Debit Cards

Visa CardMany employees do not have a bank account which employers can directly deposit wages on pay day. In looking for ways to increase efficiencies and reduce the costs of writing physical checks, many employers have looked to prefunded, reloadable debit cards, commonly referred to as payroll debit cards.

State Treasurers Waiting for ULC Uniform Act

Last week, Kansas City hosted the 2015 National Association of State Treasurers Treasury Management Symposium. The Symposium hosts state treasurers and their staffs for three plus days of training and networking. This is one of the premier events for state unclaimed property administrators, typically hosting more than 30 different state administrators at one time. In 2014, the major topics included enhancing claims processes and online holder reporting.

How Confidential are Auditor Workpapers

Court OrderOngoing shareholder litigation highlights concerns that many holders have regarding the confidentiality of audit workpapers when dealing with third party audit firms acting on behalf of multiple states. City of Sterling Heights General Employees Retirement System v.

Minnesota Sued Over Unclaimed Property Program

Photo by smokedsalmon on FreeDigitalPhotos.netIn the past ten years, Minnesota's unclaimed property fund has more than doubled, as the state has increased enforcement actions and more companies are reporting. The state is now finding that with more money comes more problems. Last week, a lawsuit was filed challenging whether the unclaimed property program violates due process clauses of the U.S. and Minnesota constitutions. The lawsuit seeks class action status.

Arkansas Considers Shorter Dormancy Periods

HB 1782 has passed and is now Act 1039.

Originally Posted March 11, 2015:

Arkansas has a five year dormancy period for many types of properties. A new bill sponsored by Representative Jean considers shortening the standard dormancy periods in Arkansas to three years. This would include debt of a business association; demand, savings or time deposits; proceeds from the demutualization of an insurance company; and the general catch-all provision for "all other property."

New York Requesting Bids for Auditors

New York Business BuildingsHolders should be aware that New York is looking to once again bulk up its audit practices. Last year, New York sought to add two internal senior audit staff members. Now, it is looking for external auditors.