Scam asks businesses to pay for free report

Connecticut officials are warning businesses about a scheme, veiled as an urgent government notice, designed to finagle payment for a free state report.

Labeling the mailed solicitations for financing statements “an ongoing potential government imposter scam,” state officials said a company called CT UCC Statement Service is trying to hook businesses into paying $90 for a copy of a Uniform Commercial Code report.

While the mailing is seemingly meant to look like a government notice, the company has no affiliation with the state and such reports are available for free on the Secretary of the State’s website, Attorney General William Tong said.

“This company has zero affiliation with the State of Connecticut and there is no need to pay for their useless services,” Tong said. “If you receive this letter, do not respond. If you have paid any money to this business, please file a complaint with my office.”

A representative of the company, which lists an address in Manchester on its mailings, did not respond to a request for comment.

A UCC financing statement is a form documenting that a creditor, such as a bank, has a lien on a borrower’s personal property. The forms are filed with the Secretary of the State and give proof of assets to other creditors.

While CT UCC Statement Services notes in small print that they are “not affiliated with any state or government agency” and that businesses are not required to use their services, such a disclaimer may not be sufficient, state officials said.

Branford-based Pat Munger Construction Co. received the solicitation in November, but did not fall for it, company President David DeMaio said Monday.

His financial team did its own research, DeMaio said, “and realized it was a scam.” Company officials alerted Essex Savings Bank, which was listed on the solicitation under “secured party’s name,” and the bank in turn alerted the state banking commissioner, DeMaio said.

“My team was sharp enough to avoid anything like that,” he said.

CT UCC Statement Service targets businesses that recently obtained a loan or other extension of credit in advance of an annual report filing deadline of March 31, state officials said.

“Scammers pay attention to when filing deadlines for businesses are looming and then try to take advantage of a stressful and busy time for business owners by asking them to pay for services that are actually free,” Consumer Protection Commissioner Bryan T. Cafferelli said.

Government imposter scams can take many forms and can target individuals and businesses alike, officials said. Con artists are careful to design their mailings to resemble official government documents by incorporating elements such as seals, bar codes and references to statutes and regulations.

The mailings may include terms such as “IMPORTANT,” “OPEN IMMEDIATELY,” or “TIME SENSITIVE” to create a false sense of urgency. Businesses that fall prey end up paying significant fees for services they either do not need or could take care of themselves for much less money. The state sent out a similar warning last year. The company sending mailings then was called CF Division Services. The Better Business Bureau on its website says consumers allege CF Division Services had solicited businesses with official-looking notices saying they needed to post employment/labor law posters that were in fact free from government agencies.

To report a scam or fraud, contact the Office of the Attorney General at 860808-5318, or file a complaint with the office at dir.ct.gov/ag/complaint.