Press release here.
The Minnesota Department of Commerce announced today it has taken action against another kickback scheme in which a title insurance company set up sham affiliated businesses with real estate agents, mortgage originators and developers in order to get around state and federal laws prohibiting direct payments for referrals. The Department revoked the insurance producer licenses from six title companies and fined Premier Title Insurance Agency $175,000 for participating in the kickback scheme. According to the consent order, Premier Title Insurance allegedly created and controlled sham affiliated businesses and paid kickbacks or other things of value to its referral partners for the referral of title insurance business and real estate closings.
The Department shut down six sham affiliated business by revoking their title insurance licenses including 1st Title, St Louis Park, Timberland Title, Arden Hills, Royal Title, Minneapolis, St. Cloud Title & Abstract, St Cloud and Foundation Title, Brooklyn Center. The final company, Desert Sun Title, did not have an address or any referral partners.
1 response so far ↓
Shane Kane -TitleSuccess.com // February 21, 2008 at 2:39 pm |
Good. Shut them all down.
They make it more diffiult for ethical and hardworking title agents to get work. Let’s put the money back into the hands of those that most deserve it.