Wednesday, July 23, 2014

Corporate Compliance Recorder- Beware of Fraud!

January 23, 2009 by  
Filed under Business Law

Example  A client of mine received a letter from the “Corporation Compliance Recorder” with a return address in Los Angeles, CA. The envelope included a very official looking seal that if not given a second look, could be misinterpreted as a government seal. The envelope contained an “Annual Compliance Notification” quoting sections of the California Business Code and its requirement that a California corporation must keep annual minutes. The company also threw in some scary language about “personal liability for corporate negligence”. They then requested remittance of the included fillout form and a fee of $125 ($175 if filed after the “due” date).
Now the unwary and busy entrepreneur would just fill it in and send in a check to ensure “compliance”. But my client’s smarter than that, he consulted me.
While it is true that in order to maintain your corporate charter, you will need to keep certain company records, YOU DO NOT HAVE TO PAY A FEE TO ANY “COMPLIANCE RECORDER” TO HAVE THIS DONE. Your books and minutes can be kept by the corporation and do not have to be filed anywhere except maybe in your desk.
So when in doubt, read the fine print (they will usually have a disclaimer stating that they are soliciting business and this is not endorsed by any government agency). Make sure the agency on the return address label is a legitimate government agency. Or just ask your trusted attorney advisor.

Comments

12 Responses to “Corporate Compliance Recorder- Beware of Fraud!”
  1. Very good articles and I am also interested in that, please give some more details.

  2. G Rutter says:

    3/23/2010 Just received a scam letter from “Recording Compliance Board” for those who have recently purchased or refinanced their house, advising of future title problems if one does not have a “Deed of Reconveyance”. They will provide this for $145. Letter and envelopes look reasonably official. To be sent to a PO Box in Los Angeles.

  3. John says:

    I received this BS letter from “Recording Compliance Board” yesterday (5-8-10).I hold these kind of sub-human life forms in toal contemp since the majority of their victims are the elderly who can least afford this kind of
    underhanded flim-flam. I made a few copies and sent them off with a “Nice” cover letter to the Los Angeles DA”s office, and the Ca Dept Of Consumer Affairs to name a few. Let’s see what happens (If anything!).

    Signed….

    Pissed Off!

  4. L. Howard says:

    Official looking letter from Recording Compliance Board, Title Reconveyance Dept. arrived today. Wanted me to send $145 to them PO Box 480501, LA CA 90048. Annoyed that these
    scammers seem to avoid legal consequence.

  5. Stephen Borisoff says:

    My mother-in-law received that Recording Compliance Board, Title Reconveyance Dept. letter yesterday too. It was alarming because it is carefully worded to scare the pants off of you and the even more scary fact is that we called our mortgage company GMAC to find out if there was a lien on a Deed of Trust my mother-in-law holds on the refinanced loan with GMAC which was not removed from the old GMAC mortgage before refinancing. No one knew anything at GMAC and had us fax the pages to two parts of GMAC the Lien Department, etc for a tune of $8.00 faxing fee. What is most scary is not the bogus letter but that Mortgage Companies don’t know what is going on.

  6. David Edwin Jones says:

    I too received a letter, if not two, from Recording Compliance Board. Every other line was laden with ominous consequences if I did not send them $145.00. I suppose that they have been advised by an attorney who thinks and works at the same scatological level they do, that the one sentence beginning “if you do not already have. . . ,” is all they need to protect themselves from prosecution. Otherwise, why haven’t they been stopped?
    David E. Jones

  7. David Edwin Jones says:

    A brief look at search results for “Recording Compliance Board” shows that this scam is alive and well from Ventura to Riverside. Why not try the
    U.S. Postmaster General
    U.S. Postal Service
    475 L’Enfant Plaza, SW
    Washington, DC 20260-0010

    David Jones, Sylmar

  8. Diana Matovich says:

    I received a letter requesting $145.00 as well. I re-financed my loan last year….what peaked my curiousoity is the sentence in very small print “Recording Compliance Board is a private non-governmental company and is not government endorsed. We help homeowners’ secure clear title to their property to their property after the mortgage obligation has been paid off. For questions regarding this notice, please contact (800)569-0610″

    I am sending them back the scam stories I found on the internet in lieu of the $145.00! I only wish they would have included a self addressed STAMPED envelope ~L~ Oh well, it’s worth $0.44 to me!

    Diana Matovich, Redondo Beach

  9. Anna Marie Cuellar says:

    My parents also received one of these scam letters. My Mother is 88 years old and this letter scared her. I told her it was a scam. To satisfy her I took the letter to the Recorders Office in Norwalk, CA. As soon as they saw the letter they informed me it is a scam. I called the phone number on the letter to give them a piece of my mind. I just got a recording to leave my name, address of the property and my phone number. I left my phone number but no one returned my phone call.

  10. Jacob Fabree says:

    I have not read the letter but i used to record docs for a title company and I can you first hand that reconveyances are supposed to be recorded after a refi but doesnt always get done or gets delayed for years. Reconveyances are used as “filler” docs for the title companies when the grant deeds and deeds of trust get pulled for documents not being filled out correctly. Unfortuantely when you reserve the 8am insured doc time slots you HAVE to use up the slots even when orders get pulled last minute. Thats where the reconveyances come in. The recorders are given stacks of reconveyances that are sometimes years old that get lost in the hustle and bustle of quickly shuffling docs back in forth. Also, there is a stack of the reconveyances at the titel company when i needed more filler docs. just sitting there We used to file reconveyances that were 2-3 years old regularely. If I had a dollar for every time something wasn’t propley reconveyed i would seriosuly be rich. We always had to track people/lenders down to get title cleared, because it wasnrt done in a timely manner or never got done. Happened all the time. Listen people, if you have a copy of the Reconveyance don’t use the service, its that simple. If you need one then call them. Just call any title company and they will tell you the same! Actually they may not cop to it since they are supposed to file them in a timely manner!

  11. John says:

    I received a similar letter today but came across the latest fake of these types of letters on this blog

    http://whatsnextmembership.blogspot.com/2013/06/warning-from-whats-next-membership.html

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