Texas takes action against California company targeting small businesses nationwide

Texas officials filed charges against two Californians operating a business under the name Compliance Services that solicits money from small business owners in the name of getting them to comply with the law.

Texas Attorney General Greg Abbott won a temporary restraining order preventing Compliance Services and principals Selwyn Monarch and Gayle N. Standford from sending the mailings to Texas businesses. Other states, including Massachusetts, Ohio and Florida have warned against this and other similar attempts to solicit money from business owners. Here's an example of one of the mailings.

Officials say business owners are being sent official looking form labeled "Annual Minutes Requirement Statement" and are being asked to pay $125-$150 in filing fees or risk breaking state law requiring meeting minutes to be filed. The minutes are not required to be filed.

Texas is seeking restitution for the businesses that paid the money.

"The bogus forms' seemingly official appearance and references to statutory authority, as well as statement about liability for failure to pay fees, misled Texas businesses into purchasing the defendant's worthless services," the attorney general's office said in a statement.
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