(RALEIGH) -- A California company that sent misleading mailings to North Carolina businesses to obtain corporate minutes must permanently change the way it does business. Corporate Services, Inc. reached a settlement with State Attorney General Roy Cooper and Secretary of State Elaine Marshall.
The settlement primarily bars the company from sending deceptive mailings to North Carolina businesses. Corporate Services must also pay the state $25,000.
“This is good news for North Carolina businesses and employers,” said N.C. Secretary of State Elaine F. Marshall. “Today we are sending a strong message that scare-tactic marketing and advertising disguised to look like it came from a government agency will not be tolerated in our State.”
A suit filed in 2009 by Cooper and Marshall alleged that Corporate Services, Inc., Compliance Services and owner Selwyn J. Monarch misled North Carolina businesses into thinking they had failed to comply with state laws on taking and filing corporate minutes. The suit further alleged that Corporate Services sent mailings that gave the impression that they were a state agency, even using a post office box in downtown Raleigh as their return address. The mailings directed the businesses to pay $125 and provide information on their corporate minutes by a certain date.
Any future mailing by the company must clearly disclose that it is an offer for solicitation of commercial services and is not approved or endorsed by a government agency. There are also other provisions set forth on specific information the mailing must include and language that should and should not be used.
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