Old Republic Faces Cease-and-Desist Hearing

State Insurance Commissioner Chuck Quackenbush on Monday ordered Old Republic Title Co. to appear at a hearing next month to respond to charges that it used customer escrow deposits to reap more than $30 million for itself over the last decade.

The San Francisco-based company, which has 85 offices across the state, including operations in Glendale and Santa Ana, is also accused of failing to turn over $10 million in unclaimed funds from dormant accounts to state officials and charging customers for services it never performed, said Dana Spurrier, a spokeswoman for Quackenbush. The March 16 cease-and-desist hearing is being held to ensure that any illegal activities have stopped.

Allegations against Old Republic began to surface last March after the city of San Francisco filed a whistle-blower lawsuit against the company, alleging that it defrauded California consumers in schemes that closely reflect the allegations outlined by Quackenbush’s office.

Bob Van Nest, an attorney representing Old Republic, said the company has been cooperating with Quackenbush’s office in an ongoing review. Many of the allegations being leveled against Old Republic, he said, are industrywide practices that he contends are legal.

Tens of thousands of California customers may have been affected by Old Republic’s alleged practices, Spurrier said. The Department of Insurance is reviewing the business practices of other title and escrow companies, she said.