Escrow Company Scandal Grows
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Updated: 12:14 PM Apr 21, 2009
Escrow Company Scandal Grows
More victims come forward
Property taxes are due in two weeks for Jerry and Maxine Bennett of Fremont. However the escrow company they trusted suddenly disappeared along with their $1,100 for property taxes and home insurance.
Posted: 5:55 PM Apr 20, 2009
Reporter: Mike McKnight
Email Address: sixonline@wowt.com
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Property taxes are due in two weeks for Jerry and Maxine Bennett of Fremont. However the escrow company they trusted suddenly disappeared along with their $1,100 for property taxes and home insurance.

Six On Your Side first reported last month about the Chicago-based American Escrow unexpectedly closing and leaving some Nebraska families out the money they need to pay property taxes. Since that report, other worried homeowners have called.

“Their excuse is they had money embezzled and they were robbed," said Maxine Bennett.

The Bennetts can’t get answers because since the last letter was sent by American Escrow, the company address, phone number and Web site have disappeared.

“Like don't get a hold of us, we don't want to get a hold of us,” said Jerry Bennett. “I don't know where they're putting the money. Evidently it's not safe."

The Illinois attorney general has received nearly 70 complaints from homeowners who are scared their money is missing. Investigators are in touch with company owners trying to get to the bottom of it.

Since the Bennetts can't count on their escrow fund to pay taxes due in Dodge County on May 1st, they had to dip into their savings and put new garage doors on hold. “Garage doors got to wait, taxes won't wait,” said Jerry.

The Bennetts refinanced two years ago and their mortgage company set them up with American Escrow, which faithfully withdrew money from their checking account right up until the end.

“How many excuses you got?” asked Jerry. “What’s really going on and hopefully we'll get some answers.”

The Bennetts can't find out if American Escrow was bonded or insured, so they'll dip into savings to pay taxes and then scrape together money for home repairs sometime later.

While the Illinois attorney general is investigating American Escrow, he asks customers in other states to contact their attorney general. The number for the Nebraska Consumer Protection Hotline is 1-800-727-6432.

So far, two Nebraska homeowners have filed complaints with Attorney General Jon Bruning. Six On Your Side has received calls from several more.


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