The Commissioner has considered the matter and finds as follows:
EscrowHill's website claims that "EscrowHill.com is an online escrow service that employs a staff of industry experienced individuals eager to assist you with your sale or purchase."
Respondents were ordered to cease and desist from engaging in unauthorized money services business activities in Texas, including advertising to and solicitation of persons in Texas, whether conducted through Respondents'actions or through those of affiliates.
Respondents were further ordered to configure the website EscrowHill.com to refuse customer registration or transactions from persons located in Texas until such time as Respondents obtained the required license, and to confirm to the Department in writing, within seven days of the effective date of the order, that it had been completed.
Respondents were also ordered to confirm to the Department in writing, within seven days of the effective date of the order, that any pending transactions with Texas customers that were outstanding on the effective date of the Order had been completed.
Respondents did not request a hearing on the Order No. 2014 and it became effective on December 22, 2014.
When the Department visited the EscrowHill.com website on December 22, 2014, the website had been reconfigured and the footer of the website stated "Escrow services are not available to California or Texas residents."
On December 30, 2014, the Department received a letter from Respondents in response to the cease and desist order. The letter confirmed that the EscrowHill.com website had been reconfigured to refuse customer registrations and transactions for Texas residents and that there were no pending escrow transactions involving Texas residents as of either the effective date of the order or the date of the letter.
On January 7, 2015, the Department learned that the EscrowHill.com website had again been modified and no longer contained the
statement that "Escrow services are not available to California or Texas residents." All statements regarding services being unavailable to Texas residents had been removed, including from the website's footer and registration page. T
Respondents did not obtain a money transmission license in Texas or otherwise contact the Department before modifying the website and reconfiguring it to allow customer registrations and transactions for Texas residents. m. The Department issued a Notice of Hearing on January 30, 2015
Because Escrow Hill complete d money transmissions for Texas residents without a license until at least November 2014, Escrow Hill was in violation of Texas Finance Code §151.302(a).
From approximately January 7 to February 18, 2015, the EscrowHill.com website allowed customer registrations for persons located in Texas, even though Respondents had not obtained a money transmission license in Texas as required.
