Pennsylvania treasurer sues Delaware over abandoned property
(AP) Pennsylvania’s state treasurer has filed a federal lawsuit challenging Delaware’s claim to more than $10 million in abandoned property.
The lawsuit by Timothy Reese seeks to recover some $10.3 million remitted to Delaware’s state escheator from 2000 to 2009 by payment services provider MoneyGram Payment Services Inc. The escheator handles unclaimed property.
Dallas-based MoneyGram is also named as a defendant.
Reese argues that when a money order is not cashed after the specified time period, any associated funds must be remitted to the state where the money order was purchased. MoneyGram has been submitting unclaimed money to Delaware, where it is incorporated.
The lawsuit filed Friday is one of several challenging Delaware’s abandoned property practices.
Delaware finance secretary Tom Cook did not immediately respond to an email seeking comment Tuesday.