Edition:
August 21, 2009
Public Notices - DBA Info • CONTACT
US: News Department • Display
Advertising • Classified
Advertising
City Connection: Local business owners warned of new scam Local business owners who operate as a corporation or limited liability company (LLC) are being warned of a new scam directed at such entities.
According to the press release issued by Senator John Benoit’s office, businesses have reported receiving letters from third parties indicating that certain documents, specifically the state’s Annual Statement of Information, must be filed with the Secretary of State’s office to comply with their California Corporations Code filing obligations, but can only be done so through the third party and for a substantial fee.
A typical letter, an example of which can also be found on the Senator’s website, cssrc.us/web/37, appears similar to a Secretary of State form and contains an official-looking seal. The letter may imply that failing to return the form and pay the requested fee may place the business in legal jeopardy or cause the business to be deemed noncompliant or in default with the Secretary of State.
Inconsistencies throughout the letter point to its deceptive nature, according to Benoit, and may include the following: references to file numbers, corporation numbers or control numbers that do not match the number assigned to the entity by the Secretary of State; references or quotes from Corporations Code sections not applicable to the type of entity being solicited, such as code sections applicable to corporations when the business is a LLC; and references to an “annual fee” or “annual payment” that is far in excess of the actual filing fee.
Benoit indicates that this new pattern of activity has been reported in Nebraska and Colorado as well, and, in searching for verification of the scam, discovered that the California Attorney General’s office recently won a $1.2 million ruling against two men from Georgia who billed nearly a million California business owners $150 each for “deceptive and unnecessary corporate minute services.” (A press release from the Attorney General’s office regarding the ruling can be found online at www.ag.ca.gov.)
“Businesses are working around the clock to keep customers satisfied and their doors open. With intimidating official-looking letters, it’s not hard to see why many businesses have fallen prey to this type of ruse,” said Benoit in the press release. He adds that the required Statement of Information filing fees are $25 for California stock and foreign corporations and $20 for California nonprofit corporations; all LLC forms and information can be obtained from the Secretary of State’s website, www.sos.ca.gov/business.
Businesses who believe they may have received one of these letters are encouraged to contact the Attorney General at the California Department of Justice, Public Inquiry Unit, PO Box 944255, Sacramento, CA 94244 or through the website. The Public Inquiry unit can also be reached toll free at 800-952-5225.
|
|
