The BBB serving Central California is warning business owners that they could easily find themselves the victims of a business filing scam. Fake letters are being sent to California businesses encouraging them to comply with their California Corporations Code filing obligations by submitting fees and documentation to a third party instead of to the Secretary of State’s office.
“We had a victim contact us who was ripped off only because they thought they were complying with state regulations regarding their business,” said Doug Broten, president of the BBB. “In an economy where businesses are struggling to keep the doors open, this type of scam is especially reprehensible.”
The scam request comes from a company claiming to be the Business Filings Division of the State of California and lists a Sacramento address. It includes a false seal of the State of California as well as specific code citations and urges immediate compliance in order to “avoid penalties, fines and suspension.” Victims who have fallen for this fraudulent filing paid $239, which is more than ten times the actual $20 filing fee the State charges for California nonprofit corporations and all limited liability companies.
Businesses need to know that, according to the Secretary of State, “submitting the fees and filings required by the Corporations Code to a third party for filing with the Secretary of State does not meet the business entity’s statutory obligation to file a Statement of Information with the Secretary of State.”
Anyone receiving a solicitation letter that seems misleading or confusing is urged to contact the California Attorney General’s Office at www.ag.ca.gov/consumers/general.php or by phone at (916) 322-3360 or toll free at (800) 952-5225.
Businesses may also contact the BBB at (800) 675-8118 for help in verifying the legitimacy of filing requests.
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