Fraud can strike anywhere, and no business entity or individual is invulnerable to its nefarious purposes. The amount of fraudulent activities being committed against companies and businesses are on the rise, several of which can be attributed to an increasingly competitive market, the rapid advancement of technology, and worsening economic conditions.
The term ‘fraud’ refers to the intentional concealment of material facts and deceitful practices in order to achieve something of value (such as money and property) for the fraud perpetrator, while resulting in a loss or injury to the deceived party. Fraud offenses come in a range of forms which may occur over the internet, the phone, or by mail or fax.
Business attorneys Orange County recently warned business owners of misleading report and compliance solicitations that are being sent out to various corporate organizations. A number of these solicitations and scams focus on acquiring information relating to annual corporate minutes, annual corporate documents, and business permit requirements.
These deceptive compliance notices come in the same format as the actual official state form, required by the State of California to satisfy certain state requirements. Although these corporate minutes and corporate documents solicitations form may appear official, they are not issued by and have absolutely nothing to do with the California Secretary of State or other governmental entities.
A number of California corporations have recently reported receiving official looking forms instructing them to file a “2013 Annual Minutes Records Form” and “Notice of Corporate Compliance Requirements” that must be complied with by a specific date. These so-called state forms require private business entities to provide information about the corporation, as well as the names of corporate directors, officers, and shareholders.
These misleading compliance solicitations are usually mailed out in what appear to be official government envelopes. Although the forms contain bar code labels, provide information dialog boxes, and allude to California statutes, these are not sanctioned by the state or any agency of the government. These notices also direct business owners to pay a certain amount, approximately $100 or more, as a processing fee.
The form appears to suggest that the completion of said form releases the business owner from any statutory obligations that may be required by the state. However, this is not the case. In reality, the information obtained from these solicitations does not go to the state agency, but rather to a private organization with the intention of capitalizing on the acquired data.
Business attorneys Orange County cautions that these annual report and corporate minutes solicitations are issued by private for profit, non-governmental outfits, such as Corporate Records Service. The mailed documents from this private entity usually have a disclaimer printed on the back, stating that they are a private organization providing corporate services to corporations and that they do not provide legal advice or consultation.
If the legitimacy of a notice is questionable, it is highly encouraged and recommended to always consult with business attorneys, in order to confirm the veracity of the document before attempting to respond to it. Business attorneys Orange County are an essential component of any corporate organization, as they look after the rights of the business and protect them against fraudulent activities.
If you need business legal assistance, just visit the Gale and Vallance Business Attorneys Orange County website at http://www.incorporationattorney.com/.
This post was written by BusinessAttorney