The battle between Land America Financial Group, the nation’s third-largest title insurer, and Erin Toll, Colorado’s deputy insurance commissioner, has gotten personal.
LandAmerica general counsel Michelle Gluck asked earlier this month to have Toll removed from an investigation of the company because of “significant personal conflicts of interest with the title-insurance industry in general and LandAmerica in particular.”
Colorado Insurance Commissioner David Rivera refused, calling the charges groundless.
Toll gained national attention in 2005 when she began investigating illegal payments by title insurers to real estate agents, lenders and builders in return for a guaranteed flow of business.
Colorado negotiated settlements worth $26.6 million – which resulted in refunds to customers in many states – with First America Title Insurance Co. and Fidelity Financial Co., but Land America didn’t settle. It has, however, settled with regulators in California, Arizona and Virginia.
Congressmen considering federal laws designed to stop similar kickbacks rushed to Toll’s defense last week. Reps. Michael Oxley, R-Ohio, and Barney Frank, D-Mass., asked Land America in a letter to hand over any correspondence or summaries of any conversations regarding Toll.
Toll testified April 26 before the House Subcommittee on Housing and Community Opportunity. She discussed threats from title insurers to discredit her, in particular allegations about conflicts of interest involving clients of her ex-husband, a Denver lawyer.
“The (congressmen’s) letter was in response to testimony and evidence the committee received that raised questions of indirect threats to limit her testimony and her involvement in a proposed state title-insurance settlement,” said Marisol Garibay, a spokeswoman for the House Financial Services Committee.
LandAmerica asked on May 10 for Toll’s removal from a year-long Colorado investigation of the company.
“We did share legitimate concerns about what we believe are impediments to our ability to reach a resolution with the state of Colorado,” said Lloyd Osgood, a spokeswoman for the Richmond, Va., company.
Osgood declined to discuss specific claims against Toll contained in the letter.
Christopher Toll, Erin’s former husband, said he and other attorneys at Holland & Hart currently represent LandAmerica in four cases.
“There is no connection at all between my professional relationship with LandAmerica and my personal relationship with Erin,” Christopher Toll said. “The work that I have done with LandAmerica is something that we have never discussed.”
The couple divorced in 1998. Christopher Toll took on LandAmerica as a client in 2002. Erin Toll began investigating the title insurance industry in early 2005.
None of the Holland & Hart cases involve matters regulators are investigating, Christopher Toll said.
Colorado looked at 27 title-insurer groups in the state and found nine with questionable practices, said Geoff Hier, a spokesman with the state Division of Insurance.
“All of them except LandAmerica have been resolved at this point,” Hier said.
Asked for comment Tuesday, Erin Toll referred inquiries to Hier. LandAmerica rejects claims that it is trying to block a resolution with Colorado or other states.
“We respectfully disagree with the characterization and substance of the assertions made recently by Ms. Toll,” Osgood said. “LandAmerica has been and is committed to cooperating with all state regulators.”
Staff writer Aldo Svaldi can be reached at 303-820-1410 or asvaldi@denverpost.com.
