Business ProfileforEastland Escrows, Inc.

Eastland’s 2020 and 2021 annual reports and unaudited financial statements from February 2021 to November 2022 show that it repeatedly violated Financial Code section 17210. The Department noted the following liquid assets and tangible net worth deficiencies: 

i. Eastland’s annual audit report as of August 31, 2020, shows a liquid asset deficiency of $56,698.00 and tangible net worth deficiency of $20,270.00.

ii. Eastland’s unaudited financial statements as of February 28, 2021, show a liquid asset deficiency of $2,786.00 and tangible net worth deficiency of $5,994.00.

iii. In March of 2021, the Department notified Eastland of the deficiencies and requested that Eastland comply with Financial Code section 17210. Eastland maintained the required tangible net worth for a few short months in 2021.

iv. Eastland’s annual audit report as of August 31, 2021, shows a liquid asset deficiency of $22,956.00.

v. Eastland’s unaudited financial statements as of February 28, 2022, show a tangible net worth deficiency of $64,745.00.

vi. Eastland’s unaudited financial statements as of April 30, 2022, show a tangible net worth deficiency of $19,572.00.

vii. Eastland’s unaudited financial statements as of May 31, 2022, show a tangible net worth deficiency of $36,205.00

viii. Eastland’s unaudited financial statements as of July 31, 2022, show a tangible net worth deficiency of $4,297.00. 

ix. Eastland’s unaudited financial statements as of August 31, 2022, show a tangible net worth deficiency of $8,232.00. 

x. Eastland’s unaudited financial statements as of September 30, 2022, show a tangible net worth deficiency of $40,871.00. 

xi. Eastland’s unaudited financial statements as of October 31, 2022, show a tangible net worth deficiency of $72,381.00. 

xii. Eastland’s unaudited financial statements as of November 30, 2022, show a tangible net worth deficiency of $102,837.00.

xiii. Eastland’s unaudited financial statements as of February 28, 2023, show a capital infusion resulting in a tangible net worth of $52,865 barely meeting the tangible net worth requirement of $50,000. Eastland, however, continues to have a year-to-date operating loss. 

Based upon the foregoing, the Commissioner finds that Eastland repeatedly violated Financial Code section 17210, subdivision (b)(9).  

Quarterly Audited Financial Statements. Eastland Escrows, Inc. hereby agrees to engage (at its own expense) a certified public accountant or certified accounting firm, or compliance auditing firm (Auditor), subject to the approval of the Department. The Auditor shall conduct an audit of Eastland’s books and financial records to ensure compliance with Financial Code section 17210, and to provide quarterly audit reports containing audited financial statements (Audit Report), set forth as follows: 

a. The first Audit Report shall cover all of Eastland’s books and financial records from March 1, 2023 through May 31, 2023, and shall be submitted to the Commissioner no later than June 30, 2023.  

b. The second Audit Report shall cover all of Eastland’s books and financial records from June 1, 2023 through August 31, 2023, and shall be submitted to the Commissioner no later than September 30, 2023. 

c. The third Audit Report shall cover all of Eastland’s books and financial records from September 1, 2023 through November 30, 2023, and shall be submitted to the Commissioner no later than December 31, 2023. 

d. The fourth Audit Report shall cover all of Eastland’s books and financial records from December 1, 2023 through February 29, 2024, and shall be submitted to the Commissioner no later than March 31, 2024. 

Eastland is hereby ordered to pay an administrative penalty to the Commissioner in the amount of $4,000.00 within ten days of the Effective Date of this Consent Order. Eastland shall pay the penalties by automated Clearing House deposit or cashier’s check.