Attorney General files lawsuit against unclaimed property scheme

CHARLESTON — West Virginia Attorney General Patrick Morrisey today filed a lawsuit contending that a Georgia company deceived Mountain State residents with letters to unfairly skim a portion of the consumers’ unclaimed property.
The lawsuit alleges Beacon Asset Recovery Agency LLC and its owner, Nathan Pendergrass, took advantage of an untold number of residents by charging a fee to recover unclaimed property without disclosing consumers can do just that for free through the West Virginia State Treasurer’s Office.
The Attorney General further alleges Beacon conducted business without a license for private investigating and without required certifications from the State Tax Department and Secretary of State’s Office.
“Companies doing business in West Virginia must follow the rules,” Morrisey said. “Protecting consumers from unscrupulous businesses is central to the mission of my office.”
The lawsuit, filed in Kanawha Circuit Court, identifies Brooke and Summers County residents as having received a letter from Beacon, which offered to assist in recovering specific amounts of cash for a fee equal to 33 percent of the recovered amount.
The lawsuit states Beacon disclosed having acquired specific information regarding unclaimed property possessed by the West Virginia State Treasurer’s Office and sent letters soliciting consumers to purchase its service. Beacon did not disclose the number of letters and recipient identities.
The lawsuit seeks a $5,000 civil penalty for each violation of the state’s Consumer Credit and Protection Act, in addition to a court order forcing Beacon to turn over all funds obtained as a result of its unlawful actions.