New scam hits small business owners

Posted on: April 4, 2011

In this tough economy, small business owners have to account for every penny they can. Now a scam letter is going out to small business owners that you need to be aware of. The letter looks just like an official state document from the state of Colorado. It has a seal, cites the Colorado Revised Statues and uses attention-grabbing language telling small business owners that they are at risk of becoming “noncompliant” or “delinquent.”

The letter tells small business owners to complete an enclosed form and send a check for $225 to file a periodic report with the Colorado Secretary of State’s Office. By law, a periodic report is due every year from small business owners, however, you can file it on-line and the cost is only $10. In addition, when you first file the report, all you need to do is confirm the information and hit send to the State. That’s all is what is required from the State of Colorado.

A local businessman brought this scam to the attention to a local news station. He said that once you read the letter all the way through, you’ll find that the letter comes from a Nevada based “Corporate Controllers Unit, LLC.”

“Corporate Controllers Unit, LLC” did not have a phone number listed on their website or in company paperwork filed with the Colorado Secretary of State’s office. When the local news station tried to email the company, they did not receive a response.

Even though the company website featured five testimonials from satisfied customers, a website called “Ripoff Report” listed nine complaints against this company. Just and FYI – I used to write testimonials for my clients for their websites. I always asked for “real” testimonials but a good writer can make up anything for a testimonial they want to.

Also be aware that these solicitations tend to share common elements and may contain one or more of the following characteristics:

• Appear similar to a government form;

• Contain an official-looking seal;

• Refer to a statute or quote other Acts or laws;

• Imply that failing to return the form and pay a fee may place your company in jeopardy, may “pierce the corporate veil,” or might cause your company’s filings with the state to be in a noncompliant status;

• Contain a “Corp Number” or “Corporate Identification Number” that does not match a number given to your entity by a State or Federal Agency.

Don’t get caught up in this scam. Remember, filing your company’s periodic report with your state is easily done on-line and costs around $10, not $225.


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