US seized asset case to benefit Irish owners

Hundreds of Irish people have had shares, stock dividends and bank accounts improperly seized by US authorities on the basis that they were dormant or inactive for more than three years, it has emerged.

Over several decades the government in California seized $5 billion (€3.7 billion) in unclaimed assets from more than eight million people. However, US courts ruled last week that the state government seized and sold these assets without giving owners fair warning.

The attorney who won the appeals court case said yesterday that a search of the seized assets shows that hundreds of people with addresses in Ireland are among those who have had their assets seized.

They include holders of shares in companies that are based in California (such as Hewlett Packard, Pacific Bell, Intel, etc), unclaimed dividends for California-based firms or bank accounts based in the state.

Records of these assets seen by The Irish Times show the addresses of hundreds of residents based across Ireland with shares, dividends and bank accounts in many well-known firms and financial institutions. Thousands of residents in the UK and other European countries are also affected.

Bill Palmer, the attorney who won last week's case, said insufficient steps were taken by the government to contact property-holders, especially those with addresses in foreign countries.

"There was a generic advertisement placed in Californian newspapers asking property holders to check whether their assets had been seized. They never tried to contact people in Ireland or Europe, or California for that matter," he said.

"Anyone who holds stock or has a financial interest . . . to California may be affected."

He said in recent years he helped reunite a family based in Co Sligo with assets from a relative worth $2 million which had been seized by authorities. However, he said the family lost interest which would have accrued on the assets if they had not been seized worth up to $1 million.

The California state government awarded contracts to private companies to seize shares or bank accounts that appeared to be inactive for three years or more. Each year California takes in millions of dollars in unclaimed property, using the funds to supplement revenues and cover expenses.

Mr Palmer advised any Irish people who feel they may be affected to contact the company or financial institution in which their assets are held. They may also check an internet database (see below), although this only contains details of seized assets for residents with US addresses.

For further information, visit scoweb.sco.ca.gov.