DFI Takes Possession of Hartman Escrow
On July 31, 2012, the Washington State Department of Financial Institutions (DFI) took possession of the business and property of Hartman Escrow, Inc. On September 20, 2012, Orse & Co. of Seattle was appointed as the receiver to operate and manage Hartman Escrow at DFI’s request. See: Appointment of Receiver Press Release.
Update: 05/07/13 - Distribution of Claims
On May 7, 2013, the Court in the Hartman Escrow receivership approved the Receiver’s Motion to Allow/Disallow Claims and Allowing Distribution (PDF)*.
The Receiver is authorized to distribute the following amounts:
- Deposit claims (at 100% up to $2,425) in the amount of $22,692.56;
- Tax claims (at 100%) in the amount of $20,985.73; and
- General unsecured claims (at 36.9%) in the amount of $806,388.22.
The total distribution will be more than $850,000. Adding the $19,441 in deposit claims previously distributed, total distributions to date equal almost $870,000.
It is anticipated that after up to $200,000 in surety bond coverage is received, other assets are liquidated, and after payment of final administrative expense in the receivership, there will be a final, smaller pro rata distribution to approved general unsecured claimants. The amount and timing of that final distribution are not known at this time, but is anticipated it will result in a total pro rata distribution to unsecured general claimants in the range of 45-53%. (No additional payments on deposit or tax claims will be made.)
Update: 01/28/13 - Approval to Pay Claims
On January 22, 2013, the King County Superior Court authorized the receiver of Hartman Escrow to pay claims to individuals arising out of prepetition escrow monies deposited with Hartman.
Update: 01/24/13 - Receiver's First Report
Orse & Company, Inc., the duly appointed general receiver of Hartman Escrow, Inc. has submitted their first report regarding the receivership from its appointment on September 20, 2012 through December 31, 2012.
Update: 12/14/12 - New Claims Identified, Claims Period Extended, and Initial Distribution of Funds Scheduled
DFI’s examiners working on site at Hartman Escrow in Tukwila recently identified approximately 130 consumers who need to get notice of the Receivership. The Receiver is preparing to send notices to those additional consumers and has extended the claims period for the more than 2,000 consumers who have already received notice to Jan. 14, 2013.
In addition, DFI’s examiners, working with the Receiver, have identified 15 consumers who may receive an initial distribution of $19,441. These individuals, who personally delivered money to Hartman Escrow as a deposit in connection with the purchase of real property, may qualify for a priority claim up to $2,425 of the amount they had deposited. The Receiver has filed a petition with King County Superior Court to make that initial distribution. Of the 15 distributions, 11 represent full restitution for consumers.
So far, the Receiver has received more than 80 claims totaling more than $1.1 million. Subject to Court approval, the Receiver will continue to make qualifying claim distributions until funds are exhausted.
The time period for filing claims in the Hartman Escrow receivership has expired.
Receiver’s Motion to Allow/Disallow Claims and Allowing Distribution (PDF)*
May 07, 2013
- Order Taking Possession of Hartman Escrow, Inc. (PDF)*
July 31, 2012
- Temporary Order to Cease and Desist 2 (PDF)*
August 07, 2012
- Temporary Order to Cease and Desist 1 (PDF)*
July 18, 2012
Superior Court Actions
Order Authorizing Receiver to Pay Claims (PDF)*
January 22, 2013
- Order Appointing Receiver (PDF)*
September 20, 2012
- Petition for Appointment of Receiver (PDF)*
September 13, 2012
If you would like to talk with someone about your claim, please call 1-877-746-4334 and ask to speak about Hartman Escrow. You can also visit us in person in Tumwater. Here are directions to DFI.
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