DFI Orders Exceptional Escrow Corp. To Shut Down
The Washington State Department of Financial Institutions (DFI) has served Exceptional Escrow Corp. a Temporary Order to Cease and Desist (PDF)* for illegally using consumers funds for operating expenses.
The temporary order prohibits Exceptional Escrow Corp. from transferring money out of the corporation's bank accounts. View the press release sent out June 19, 2007 for more information.
Consumers suffering a financial loss as a result of the illegal activity can file a written claim with the receiver, Brian L. Budsberg.
Claim Form Now Available
If you are a creditor of Exceptional Escrow Corp., please print and fill out this claim form (PDF)*.
On June 18, 2007, at the request of the DFI, King County Superior Court appointed Attorney Brian L. Budsberg of the law firm of Brian Lowell Budsberg, PLLC to take over Exceptional Escrow Corp. of Renton. See below for more information about Brian Budsberg. View the Stipulation and Order Appointing (PDF)* Brian L. Budsberg as the receiver.
Press Release Announcing Shut Down of Exceptional Corp.
A press release announcing the closure of Exceptional Corp. was sent out on Tuesday, June 19, 2007. View the press release.
Why Was Exceptional Escrow Corp. Shut Down?
During a routine examination of Exceptional Escrow Corp., a financial examiner with the department uncovered a series of suspicious transactions. Further examination revealed the illegal transfer of more than $65,000 from an escrow account to the corporation's general operating account.
The examination also uncovered that the trust accounts at the Bonney Lake and North Bend branch offices had not been balanced for a number of months.
The department continues investigating this matter. Additional enforcement actions will be brought as new evidence is discovered.
Who Has Been Appointed Receiver?
By order of the King County Superior Court, Attorney Brian L. Budsberg of the law firm of Brian Lowell Budsberg, PLLC in Olympia is the appointed receiver for Exceptional Escrow Corp.
How Can Consumers And Creditors File Claims?
If you are a consumer and have suffered a financial loss, please print and fill out this claim form (PDF)*.
Once the form has been filled out, please mail it to:
Receiver for Exceptional Escrow
PO Box 1489
Olympia, WA 98507
Where Was Exceptional Escrow Corp. Located?
Exceptional Escrow is licensed by the department as an escrow agent located at 1123 Maple Avenue SW, Suite 250, in Renton. Catherine D. Wiseman is licensed as the designated escrow officer. Exceptional has two licensed branch offices:
- Bonney Lake at 18207 Sumner Highway, Suite 2
- North Bend at 114 Main Avenue South
What Is A Single Pooled Trust Account?
Escrow companies maintain a single "pooled" trust account for the benefit of escrow customers. The account must be balanced on a monthly basis to ensure that all deposits and distributions have been made correctly. When money is illegally taken from escrow, it impacts all escrow customers. Further withdrawals create more shortfalls. Under DFI’s regulatory authority, all account activity is stopped until account reconciliation can be completed
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