There is not a week that goes by where I do not receive a telephone call from a corporate client asking us at Incorporation Attorneys California about a disclosure statement or other government appearing form requesting the immediate payment of money.  The letter appears to be sent all over Orange County and is similar to the one here.

Scam Incorporation Services – What You Need to Know

The typical scenario is that the client has incorporated in the state of California.  Because of the government filings that are required in California, the address of the corporation and the names of the officers and directors of the corporation become a matter of public record, so it is a simple matter for the crook to figure out the officer or corporate director who should be the recipient of the scam letter.

The forms come from a variety of official-looking offices and appear to require the immediate attention of the corporate officer or the corporate director of the mailing.  Frequently, the crooks behind the scam charge several hundred dollars to file forms that will only have a small fee if they were filed directly with the correct government agency.

Many times the form suggests that if the form is completed the corporate records keeping for the corporation or the limited liability company has been completed for the year.  Nothing could be further from the truth.

What is interesting is that on January 1, 2012, the state of California passed new laws preventing people from sending misleading solicitations to Californians who had formed corporations or limited liability companies. To protect business owners who had formed corporations, the California Secretary of State, Debra Bowen, supported the law that now requires new disclaimers to be added to third-party mailings.

Corporate Scam Disclosure Statement – Corporate Records

The significant parts of the law require the following disclaimer to be put on the front and back of every page and a font that is at least 12 point bold-faced capital letters and at least 2 point font size larger than the next largest font on the page.  The law also requires or forbids the soliciting companies from using a name that may make the recipient of the mailing believe it is from a government agency or entity like the Secretary of State’s business division’s division.

It also increases the penalty to $2500 per violation.  In order to give these new laws some teeth, California corporations and corporate officers that receive this type of scam solicitation letter are encouraged to file a written complaint with the California Attorney General’s office.  The attorney general is requesting that the complaint be accompanied by the entire solicitation including the envelope and the other related corporate records and documents.  A complaint form can be completed online at the California Attorney General’s website.

For more information about incorporation, visit us at https://www.incorporationattorney.com/incorporation-attorneys-california-about/