EVERETT — The state Insurance Commissioner has ordered Stewart Title of Everett to stop what he calls “lavishing illegal gifts and incentives” to influence business referrals.
Commissioner Mike Kriedler said any investigation of the firm shows it is providing thousands of dollars to real estate agents in the form of fees, paid advertising, auction donations, parties and gifts.
By law, such gifts are limited to $25 per year per person.
“I’m appalled that this company clearly has paid no attention to our message that this spending violates the law and won’t be tolerated,” he said in a news release. “This is unacceptable behavior and there will be consequences.”
Kreidler said a he has found 100 apparent violations by Stewart in a four-month period.
He has the authority to issue a $10,000 fine for each violation.
Calls by The Herald to Stewart Title’s local and national offices were not returned immediately Wednesday.
While the state is continuing an investigation of six title insurance companies, Stewart was the only one of the six to receive a cease and desist order, said Bill Ripple, spokesman for the Office of the Insurance Commissioner.
The state’s critical look at violations of the gift rules shouldn’t have come as a surprise. Last fall, Kriedler warned the title insurance industry that it would crack down on such practices after an investigation found “widespread and pervasive abuse,” Ripple said.
“We’ve sent a clear message, and now we’re telling them this absolutely has to stop,” Ripple said.
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