- District of Columbia AG Brian Schwalb has settled with Allied Title & Escrow, LLC, KVS Title, LLC, Union Settlements, LLC, and Modern Settlements, LLC, along with affiliate entities to resolve an investigation into allegations that the companies paid agents for referrals in violation of D.C. Code § 31-5031.15, which regulates title insurance providers, and the D.C. Consumer Protection Procedures Act.
- In the settlement agreements, the AG’s office alleges that the title companies enticed real estate agents to make business referrals by offering discounted ownership interests in the companies or related shell entities. In exchange for these referrals, the agents allegedly received kickbacks, including a share of the profits, invitations to yacht parties, and other forms of consideration.
- Under the terms of the settlement agreements, the companies will pay a combined $3.29 million in civil penalties, a portion of which will be used to provide restitution to consumers who purchased title insurance or other settlement services. The companies are also prohibited from offering any consideration to real estate agents for the referral of title insurance business and must either divest agents of their ownership interests in the shell companies or cease operations in the District of Columbia.