CORPORATE TRANSACTIONS & COMPLIANCE BLOG

Beware of Misleading Solicitations and Compliance Scams

By: Sara Pogorzelski, COGENCY GLOBAL INC. on Tue, Nov 06, 2012

Annual Report Filing

Keeping up with state requirements can be overwhelming, as every jurisdiction has a different report name and due date. To make matters worse, there are organizations that specialize in targeting companies with misleading solicitations and compliance scams.

These solicitations are sent to companies directly and all entity types can be targeted. The letter usually looks “official” and appears to come from a state filing office. It notifies the company of a fictional report requirement and offers assistance in filing the document. The fictional requirement is typically titled as “Periodic Report,” “Annual Minutes Report” or a “Statement of Directors/Shareholders.”

When reviewing any notice that your company receives, it is important to read the fine print. One indication that you have received a solicitation is the phrase, “This product has not been approved or endorsed by any government agency, and this offer is not being made by an agency of the government.”

Unfortunately, not every scam notice has this disclaimer, which is why COGENCY GLOBAL INC. actively maintains a list of these scams and provides samples of the bogus notices. If you receive a document and are unsure of its legitimacy, please visit our website and compare it to our list of misleading solicitations.

Please reach out to us if you are unable to determine the legitimacy of a notice, or have received a notice that is not listed on our site. Simply send an email to info@cogencyglobal.com with a copy of the solicitation attached. We will happily review the document and confirm its authenticity.

 

This article is provided for informational purposes only and should not be considered, or relied upon, as legal advice.

Topics: Annual Report Compliance