Thursday, September 18, 2014

The California Secretary of State Issued A Notice Regarding Scams Targeting Business Owners by Elisha Yang

Recently, the California Secretary of State issued a "Customer Alert" regarding fraudulent activity targeting registered business entities in California.  A private company identified only as "California State Corporations" is illegally sending misleading solicitation letters to California businesses.  The entity titled, "California State Corporations" has no affiliation with the Secretary of State's office.

The notices being sent look official and appear to originate from a government agency, when in fact the notices do not come from any government agency.  The notice letters instruct business owners to submit a form along with a fee of $49.50 in order to receive a Certificate of Status. 

A Certificate of Status is a document that can only be issued by the California Secretary of State as evidence that a business entity exists, is in good standing, and may conduct business in California.  The official Certificate of Status must bear the seal of the State of California accompanied by the signature of the Secretary of State, Debra Bowen.  A Certificate of Status may be required in order for a business to obtain financing; renew a business license; or enter into a business transaction.  To obtain a genuine Certificate of Status, a business owner should contact the Secretary of State's office directly.

Before you fill out any form regarding the registration of your business, especially one purporting to provide an unsolicited status, review the document carefully to ascertain that it originates from a legitimate government agency.  If you receive a notice and are unsure about its propriety, then contact attorney Ronnie Gipson by telephone at 415.692.6523 or by email at gipson@higagipson.com.   

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