Showing posts with label Business scams. Show all posts

Earlier this month, the Colorado Secretary of State (CO SOS) issued an alert to the Colorado business community regarding deceptive mail solicitations. The official-looking documents request a $225 annual fee to file reports with the Secretary of State’s office and use stress-inducing words like "noncompliant" and "delinquent" in order to elicit a response. According to the CO SOS, in most cases, the annual fee is merely $10 if filed directly with the Secretary of State’s office. That's quite a profit these clever scam artists are making, huh?

The documents, which are titled “Periodic Report,” are creating confusion for many Colorado-based business who are being urged to keep an eye out for these deceptive solicitations. The documents are being sent out by an entity calling itself the “Corporate Controllers Unit.” Please be aware, that these forms are not required by the Colorado Secretary of State’s Office. If you would like to review your entity’s records, please visit the CO SOS's web site.

To view a sample of one of these solicitations, click here.

As always, feel free to give us a call if you have ANY questions about documents you may receive—from us or another party. We’re happy to help make sure you don’t get caught in one of these costly scams! We can be reached toll-free at 800.533.7272.

Throughout the years, the California Secretary of State (CA SOS) has issued many customer alerts regarding deceptive solicitations aimed at those doing business in the Golden State. In fact, the attorney general has received upwards of 1,000 complaints regarding these fraudulent solicitations. Most of the scams have involved similar tactics, including the mailing of official-looking documents warning that if the forms are not returned with payment by a certain date, the companies will risk loss of their status with the state of California. The fees requested in the scams have sometimes been as high as $495.

There is currently a bill (AB 75) making its way through the legislature that would require third-party vendors to include more obvious disclaimers on their solicitations. The disclaimers would make it clear that the documents received are not government documents—hopefully preventing more businesses from falling prey to these types of scams.

Secretary of State Debra Bowen is requesting support to ensure AB 75 makes it to the Governor's desk and is signed into law. Bowen is urging Californians to submit support letters to their legislative representatives. To view several sample letters urging your chamber to support this legislation, go here.

Parasec has been working for at least the past couple of years to get the word out about these ongoing scams and will continue to try to warn our clients about the potential for being deceived by these clever scam artists. Please feel free to give us a call at 1.800.533.7272 if you have any questions about documents you have received.

Parasec has just received official-looking documents from an entity calling itself “Department of California Collectors” or DCC. The official-looking documents imply that entities are required to complete the paperwork and return it along with a $175 fee for filing a Statement of Information. Please note: the fee for filing a Statement of Information with the California Secretary of State's (CA SOS) office is $20 or $25 - NOT the $175 these scams claim.

Please stay alert because there are many other companies perpetrating similar types of scams. Give us a call if you have ANY questions about documents you may receive, we can help determine if the documents you have received are legitimate or not.

As I mentioned in an earlier post, corporate scams are becoming more and more prevalent in today’s world. Here is an example of a recent scam in Nevada that was sent out with the intention of purposely misleading companies for a profit.

The state of Nevada requires that all Foreign Corporations publish an “annual statement” no later than March each year in a Nevada newspaper with a circulation of at least 1000. The only entities in Nevada required to do this are Foreign Corporations. Domestic Corporations, Limited Liability Companies and Limited Partnerships are not bound by this requirement. Here are a few definitions just for clarity sake:

Nevada Domestic Corporation – A corporation that has filed their incorporation documents in the state of Nevada.

Nevada Foreign Corporation – A corporation that has filed their incorporation documents in some state other than Nevada but has filed the appropriate qualification documents to do business in Nevada.

Annual Statement – A document required to be published annually by Foreign Corporations in the state of Nevada. Minimum information to be included:
1. Corporate name
2. Name and title of corporate officer submitting the statement
3. Mailing or street address of the principal address of the corporation
4. Mailing or street address of the corporate office in Nevada, if applicable
5. Total assets and liabilities of the corporation at year end

Publication – Printing of the annual statement in a Nevada newspaper with a circulation of at least 1000.

The scam:

A Nevada-based company sent out pre-completed forms to corporations (both foreign and domestic), LLCs and LPs. The form states that it is a “Final Notice” and the deadline is March 31, 2009. It gives instructions to “Submit the Form with $24.95”. The implication is that this is a required filing. Nowhere does the form state that only Foreign Corporations are required to publish an annual statement.

I have also heard that the company sending these forms out is not even a newspaper with a circulation of more than 1,000. So, even if the form reaches a Foreign Corporation and that corporation sends in their $24.95, they have not met the statutory publication requirements.

Keep an eye out for these types of manipulative mailings. With so many statutory requirements in each state and for each type of entity, it is extremely easy to be caught in one of these nets. If you are unsure about something you have received, contact your Registered Agent for assistance with identifying whether the mailing is legitimate. If you have already been scammed, it is recommended that you contact your state’s Attorney General’s office. They probably already have information about schemes that are ongoing.