Attorney General Bob Ferguson has issued a warning about a scam targeting small businesses in Washington. The scam involves letters that appear to be from the Secretary of State’s Office, demanding payments far exceeding the cost of legitimate state business filings. These letters threaten fines or dissolution of businesses for non-compliance. Reports have also surfaced of similar scams targeting Latino businesses via telephone, with threats of jail.
Since early November, at least 40 complaints have been filed with the Attorney General’s Office regarding these fraudulent letters. The letters request payments to "State of Washington Business Entities."
“Scammers can be sophisticated, but don’t be fooled,” Ferguson stated. “Be on the lookout for signs of a scam. If you think you’ve been the target of a scam, contact my office.”
The letters mimic official government communications by including the Washington state seal and demanding excessive fees under threat of penalties. One letter displayed a billing summary exceeding $200 for unnecessary filings or those available directly from the Secretary of State at lower costs.
These letters are sent directly to businesses and may include their Unified Business Identifier (UBI) number, lending an air of authenticity since business names and UBIs are publicly accessible.
There are indicators that these communications are scams. For instance, one letter shared with authorities lists an incorrect Sacramento address for the Washington Secretary of State and uses a post office box labeled “Olympia, CA.” Additionally, its QR code directs recipients to a .org website instead of the official .gov site.
Businesses receiving such letters should contact the Secretary of State’s office to verify their filing status. Those who have already paid after receiving such communication should consider stopping payment through their bank.
Any entity suspecting it is targeted by this scam should file a complaint with the Attorney General’s Office.
The Secretary of State provides guides for small businesses and nonprofits and offers verification services through its Corporations and Charities Filing System (CCFS). Queries can be addressed via chat on their website or by contacting them directly at (360) 725-0377 or corps@sos.wa.gov.
The Corporations and Charities division also offers resources on identifying false solicitations on its FAQ webpage. Business owners can consult the Corporations & Charities factsheet to confirm if communications are legitimate.
Ferguson’s Small Business Protection Initiative targets companies using deceptive practices against small businesses. Recently, EFile Business Inc. and Online Filing LLC were ordered to pay $450,636 for sending misleading messages demanding excessive payment for routine business filings in Washington.
In January, Ferguson initiated legal action against three Michigan brothers accused of sending deceptive solicitations nationwide under various company names like Mandatory Poster Agency and Labor Law Poster Service. Despite previous legal agreements to cease unlawful activities, these practices continued leading to multiple lawsuits resulting in significant penalties.
In November 2022, CA Certificate Service and Labor Poster Compliance were ordered by court to pay over $24.8 million due to deceptive conduct involving fake government-originated payment demands for non-mandatory certificates or free posters from state agencies.