We have no idea how much money was in the escrow account
As I suspected might happen, the cupboard has turned out to be bare (or close to it):
lawyers are testifying that the money isnt in the escrow account, leaving both customers and credit-card companies exposed.
The Worcester Telegram reported earlier week that a lawyer for Direct Air, Steven Fox, said during a hearing that millions of dollars are missing from the escrow account. And a lawyer for the bank where the escrow account is held confirmed that theres only about $1 million in the account.
Fox told the judge that irregularities had been uncovered in the handling of the escrow account. It is our belief that the escrow account was invaded. It may have been invaded in an unlawful manner, he said, adding that customers are owed at least $10 million and maybe as much as $30 million according to the newspaper.
The Worcester Telegram reported earlier week that a lawyer for Direct Air, Steven Fox, said during a hearing that millions of dollars are missing from the escrow account. And a lawyer for the bank where the escrow account is held confirmed that theres only about $1 million in the account.
Fox told the judge that irregularities had been uncovered in the handling of the escrow account. It is our belief that the escrow account was invaded. It may have been invaded in an unlawful manner, he said, adding that customers are owed at least $10 million and maybe as much as $30 million according to the newspaper.
http://blogs.wsj.com/bankruptcy/2012/03/29/funds-missing-from-direct-air-escrow-account/.