JPMorgan Case a Threat To Banks, Retailers With Unclaimed Assets

Banks, insurers, retailers and any businesses with a backlog of uncashed checks or balances in escrow accounts are bracing for harsher penalties and heightened regulatory burdens regarding the billions of dollars in assets they hold each year as unclaimed property.

Mounting fears over the enforcement of state unclaimed property laws already on the books stem from an unprecedented court ruling that could sting JPMorgan Chase & Co. with substantial penalties for fraudulently sitting on millions of dollars in abandoned assets that should have been transferred to the New York State Comptroller. While the ruling relates to a single bank and ...