Attorney General Phil Weiser cracks down on bogus business filings with the state

Attorney General Phil Weiser cracks down on bogus business filings with the state

Sept. 4, 2024 (DENVER) - An individual who submitted more than 15,000 fraudulent businesses filings with the state will dissolve those businesses and pay $75,000 in penalties, fees, and profits gained from his deceptive conduct under a settlement Attorney General Phil Weiser announced today.

According to a lawsuit the attorney general filed in Denver District Court in September of 2023, the defendant, Marcio Garcia Andrade, used a Northglenn residential address as a principal office address and registered agent address in forms he filed with the secretary of state's office between February 2022 and August 2023. However, neither the property owner nor the resident gave the defendant permission to use the Northglenn address in the business filings. Moreover, Andrade was not eligible to serve as a registered agent in Colorado when the fraudulent businesses were filed with the state because he did not have a primary residence or usual place of business in Colorado.

The defendant made 15,433 fraudulent business filings during the period that the secretary of state reduced filing fees for new businesses from $50 to $1. Andrade unjustly enriched himself while the fee credit was available and when he sold or transferred ownership of several of the fraudulent entities to third parties. The attorney general said his conduct violated the Colorado Consumer Protection Act.

"Fraudulent business filings are dangerous tools in the hands of bad actors. Consumers might assume these companies are legitimate and get lured into making transactions-including extending credit to-with an illegitimate actor. And consumers may be unable to reach a fake business with any concerns," Weiser said. "The defendant in this case is being held accountable for his conduct, and my office will continue to pursue those who attempt to defraud the state and harm consumers with false business filings."

Under the settlement, Andrade is barred from filing any new business registrations that do not comply with state law. Nearly all the entities he formed and owned will be dissolved pending court order. In addition, Andrade will pay $75,000 over 18 months to the state, which includes civil penalties, attorney fees, and profits he would have made from the businesses sold. Any violation of the terms of the settlement may lead to further penalties.

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