Legal Matters

And as the nation’s economy slides into recession and state coffers run dry, strict enforcement of escheat laws will be an increasingly attractive way for states to deal with their burgeoning budget deficits.

Moreover, to haul in as much money as possible, states hire private audit firms on a commission basis to identify and audit target companies. Typically receiving 10 percent to 15 percent of the amounts they collect, these bounty hunters frequently conduct audits on behalf of several states at the same time. The bill to direct marketers can be enormous, especially when interest and penalties are piled on.