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Attorney General joins in effort to secure state $3 million in unclaimed money from transfer company

Attorney General Andy Beshear has joined a group of states in filing a complaint that could secure nearly $3 million for Kentucky.

The dispute seeks Kentucky’s right to receive unclaimed “official checks” that were issued by MoneyGram, a money transfer services company that operates in all 50 states and internationally, and sold in Kentucky.

Beshear joined Arkansas Attorney General Leslie Rutledge and Texas Attorney General Ken Paxton in a group of 21 states filing this action in the U.S. Supreme Court against Delaware.

Andy Beshear

Andy Beshear

The coalition is asking the Supreme Court to declare that the plaintiff states, and not Delaware, are entitled to the hundreds of millions of dollars in unclaimed “official checks” improperly escheated, or turned over to Delaware at its guidance and direction.

The coalition is asking the Court to order the appropriate repayment to plaintiff states by Delaware and seeks the right to all future similar abandoned and unclaimed property.

“I believe federal law and state law provides that such abandoned and unclaimed property should be turned over to the state where the property was purchased,” Beshear said. “My office is working with other attorneys general and Treasurer Allison Ball to ensure any money owed to the Commonwealth is properly returned.”

“This property rightfully belongs to the people of Kentucky,” said Allison Ball, state treasurer. “My office is determined to bring back the property in question to the rightful owners.”

The ultimate dollar figure that Delaware owes Kentucky and other states may end up being much higher, Beshear said.

According to the action, this error was based on the mistaken belief that such abandoned and unclaimed property is supposed to be turned over to the issuing company’s state of incorporation, in this case Delaware.

Earlier this year, an independent auditor completed an examination of abandoned “official checks” from MoneyGram in a select group of states and concluded that nearly $200 million was owed to those states.

Joining Kentucky, Arkansas and Texas in today’s filing are Alabama, Arizona, Colorado, Florida, Idaho, Indiana, Kansas, Louisiana, Michigan, Montana, Nebraska, Nevada, North Dakota, Ohio, Oklahoma, South Carolina, Utah and West Virginia.

From Attorney General’s Office Communications

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