Video Summary:

In this transcript from a video by Gale & Vallance, Orange County corporate attorney Andy Gale explains the important topic of Spotting Fraudulent Compliance Solicitations in California. Many business owners receive forms that look like official state documents but are actually attempts by private companies to collect fees or sensitive information. Andy outlines what these solicitations look like, why they are misleading, and how to protect your business from unnecessary costs or potential fraud.

To learn more about spotting fraudulent compliance solicitations in California and protecting your business, check out our detailed guide on identifying fake corporate compliance forms.

Please note: this video does not constitute legal advice, and we strongly recommend contacting a qualified lawyer to discuss your specific situation.

Transcript

00:00:00 – Intro Music

[Music]

00:00:05 – Greeting and Purpose

hey good morning this is attorney Andy Gale your corporate attorney I just wanted to share with you uh an issue that’s come up with a number of our clients here recently and I want to make sure that you don’t get uh into the same problem that some of these other folks did

00:00:23 – Part One: Fraudulent Solicitations

um the issue that’s coming up is that our clients, our corporate clients, are receiving a number of solicitations that look something like this form, kind of an official state form. I’ll try to uh put a picture of it up in this video so that you can get a better look at it but this one’s uh entitled “2013 annual minutes records form.” Then uh here’s another kind of a different but same sort of form called a uh “notice of corporate compliance requirements.”

00:00:53 – Part Two: Why These Are Problematic

and uh the problem is is that these solicitations, though they look like the actual solicitation or form that you would need to complete to satisfy certain State requirements here in California, these are solicitations that have absolutely nothing to do with the state. You can see how similar it is in format to the actual one that you do need to complete from the state called a statement of information.

00:01:18 – Part Three: How They Look Official

These forms, they come in what appear to be official government envelopes. They have barcodes on them. They have the boxes that would be filled out that look identical to the ones that are required by the State and they start out giving you the normal um State codes that uh State why you need to do some of this stuff. For example, this one says uh California corporations code section 1500 corporate records: each Corporation shall keep adequate and correct books of record and account and shall keep minutes.

00:01:51 – Part Four: Misleading Compliance

This form seems to suggest to you that uh if you complete this form you have met those requirements and in reality that’s just not the case. They give you the code, they make you aware of the fact that there are state laws, they require information from you which you think is going to a state agency, but in fact is going to some private organization. Who knows what they’re going to do with the information? They may be selling it to your competitors, they could be selling it to other people who are going to solicit services.

00:02:22 – Part Five: Fees and Costs

But you think, well, for a small amount of money I’ll fill out the form and I think I’m in compliance. What’s funny is that if you fill out this particular form, this one will cost you $125. That’s the big white one and that’s from an outfit called Corporate Record Service. And if you fill out this particular form, this one costs you $149.

00:02:47 – Part Six: Disclaimer

And then finally at the back here they say, oh here’s our disclaimer: Corporate Minute Services is a private non-government business providing Corporate Services to corporations. CMS cannot and will not provide any legal advice.

00:03:02 – Outro Music

[Music]

Conclusion – Spotting Fraudulent Compliance Solicitations in California

Understanding Spotting Fraudulent Compliance Solicitations in California is crucial for protecting your business from unnecessary fees and safeguarding sensitive information. These solicitations may look official, but they are often private organizations trying to collect money or data under the guise of compliance. Always verify forms directly with state agencies and consult an experienced corporate attorney if you are unsure. Contact Andy Gale at Gale & Vallance in Orange County for guidance specific to your business situation.