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I just received a call on this topic from an "informed person".
It seems that the owners of Intrust also owned the Intercounty Title Company of Illinois, Chicago, in which the Intrust funds were deposited. About $68 million is missing from Intercounty Title Company. This is about 3% of the total of all accounts of Intrust but is close to 50% of the cash on deposit at Intrust. (Most of the funds in the Intrust accounts are invested at brokerage companies or mutual fund companies.)
If there is a loss, the state officials decide who takes the hit. It could range from only the owners of the cash in the Intercounty Title Company to everybody with an Intrust account.
It also appears that there are several potential buyers of Intrust and some of the offers might include adding enough capital to pay off the missing funds, resulting in no losses to clients.
Intrust is still operating but there are restrictions on withdrawing funds.
There are several tens of people from PricewaterhouseCoopers working almost round the clock on the issue and we should know a lot more in about a week.
Bob Fulks
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