Compliance Recorder is a scam

by jimbursch

scam_alert_bigWhen you incorporate your business, it’s a little like shouting out your email address at a spammers convention. You end up on a lot of sordid mailing lists.

One of those sordid lists is the “Office of the Compliance Recorder” which appears to be an official government agency, but it is not.

When you are incorporated, there are a variety of fees that have to be paid to various federal, state and local government agencies — so many that it is very easy to lose track of who and what you are supposed to pay. Then when you get an invoice or some notice to pay, it takes time and effort to figure out what it is and what it is for. The folks at the “Office of the Compliance Recorder” try to take advantage of naivete and bureaucratic exhaustion by sending a very official-looking form to corporations (which more often than not fall in the mom-and-pop category of businesses) that says you should comply with the law and, by the way, send them $150.00.

This scam is probably best documented on an obscure blog called Hinessite (based on my cursory Google search. I really don’t want to spend a lot of time on this).

I’m taking the time to post about this because it looks like Hinessite is getting dated, and people need to know about this.

UPDATE: There is better documentation of the scam at a site called Tipstrs. Their scam is in Colorado, but the form is nearly identical. Here is what the state of Colorado has to say on the subject: http://www.sos.state.co.us/pubs/business/update01_29_09.htm

Here are the details of the document they sent me:

Office of the Compliance Recorder
P.O. Box 91240
Los Angeles, CA 90009-1240

Annual Minutes Disclosure Statement
Control Number: 101825
Customer Service Unit: 1-888-325-1414

UPDATE:

I called the “Customer Service Unit” and someone in a call center did answer, but he couldn’t give me any information. I encourage anyone/everyone to call them to get more info about their business practices.

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  • 530 COLLECTIVE
    CORPORATIONS AND BUSINESSES BEWARE!!! While this may not be a SCAM in the traditional sense of the word, this PRIVATE COMPANY uses very clever marketing to get your money. Their letter looks like a very official document such as the State or Feds would send and requests money for registration of your corporation and/or business. THIS IS NOT A STATE OR FEDERAL ORGANIZATION AND THERE IS NO SUCH FEE. Again, this is a private company soliciting for your money. When I called the 888 number and started asking difficult questions I was told that someone would have to get back to me to discuss my questions and concerns further. All they kept repeating is that 'Office of the Compliance Recorder' is a private company that helps corporations/businesses. I'm glad I dug a little deeper before sending a check and I hope this helps others as well...When in doubt SEARCH THE INTERNET!!!
  • cjensen
    this is from the CA SOS website

    If you have received a solicitation letter that seems misleading or confusing, please contact the California Attorney General's office at the California Department of Justice, Public Inquiry Unit, P.O. Box 944255, Sacramento, California 94244-2550 or through the California Attorney General's website at www.ag.ca.gov/consumers/general.php. The telephone number for the Public Inquiry Unit is (800) 952-5225 (toll free in California

    http://www.sos.ca.gov/business/be/alert-mislead...

    I will be mailing the form they sent us to the CA SOS and hopefully the AG will shut them down.
  • cjensen
    the red flag is the phone number is not posted in an obvious place. another red flag is that the name itself does not indicate which agency they represent, ie; City OF, State OF. I called and told them to remove our name from their list, the guy said he would relay the message. I also told him their form is very decieving. he said he was just the answering service. BS. I'm going to call back and tell him WHAT message to relay.

    Then, I am going to hunt them down in the Seccretary of States web site and report them for mailing out fraudulent forms. You just know the liberal gov't types are going to love busting thse guys, and rightly so. Unfortuneatley these bad eggs give the private sector a bad name.
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