CHARLESTON – Attorney General Patrick Morrisey joined a 21-state coalition in filing suit in the U.S. Supreme Court to recoup millions of dollars that rightfully belong to West Virginia and partnering states.
The lawsuit was filed June 9 before the U.S. Supreme Court and alleges that Delaware ignored federal law by refusing to release hundreds of millions in unexecuted MoneyGram transfers.
The U.S. Constitution gives the high court original jurisdiction to hear and settle disputes between opposing states, including those involving financial and tax matters.
Morrisey argues that federal law mandates that money associated with any unexecuted money order, traveler’s check or similar transaction belongs to the state where the transaction was initiated until claimed by the lawful owner.
Any failure to transfer that money eliminates the originating state’s ability to invest the unclaimed funds and collect accrued interest, which can strengthen the state’s treasury and provide for its taxpayers.
“This money rightfully belongs to West Virginia,” Morrisey said. “Every dollar unlawfully held elsewhere represents another dollar of accrued interest that our state can utilize to improve its schools, parks, roads, etc.”
The lawsuit alleges with Delaware’s acquiescence, guidance and direction, millions of dollars in unclaimed transfers have been wrongfully turned over to the state of Delaware.
This error was based upon the mistaken belief that such abandoned and unclaimed property is supposed to be turned over to the issuing company’s state of incorporation.
An independent sample audit of MoneyGram’s unclaimed “official checks” found more than $160 million Delaware owed to 20 states.
Analysts believe that number could reach $400 million for all 49 states, excluding Delaware, due to MoneyGram’s role as a money transfer services company operating in all 50 states.
Morrisey signed onto the lawsuit with Texas Attorney General Ken Paxton and Arkansas Attorney General Leslie Rutledge, along with attorneys general from Alabama, Arizona, Colorado, Florida, Idaho, Indiana, Kansas, Kentucky, Louisiana, Michigan, Montana, Nebraska, Nevada, North Dakota, Ohio, Oklahoma, South Carolina and Utah.