C.F.S. Misleading Solicitation in Maine 2020
Attention to all small business owners, LLCs, and Non-profits.
The "CFS" company is in no way affiliated with the state of Maine. This company is sending out letters to Maine LLC's, small. businesses and non-profits. "C.F.S." is sending a form titled "2021- Annual Report Instruction Form" that MUST BE MADE WITH $185.00 PAYMENT. This form looks very official upon first glance, it is filled with specific entity related information that would make it appear as though the State of Maine is actually sending the form. However, the information that is pre-filled out on the form is ALL PUBLIC INFORMATION. But, most importantly, the form contains a required response date that is "backed-up" by Maine Statutes, outlining the penalties and fines, should you not file in a timely manner. This is a tactic used by misleading solicitations to create a sense of urgency in order to obtain payment. The State of Maine Secretary Dunlap wrote, “The “solicitation form” from an organization identified as “C.F.S.” looks similar to the Division of Corporations’ annual report form, but it is not prescribed nor recognized by the Maine Department of the Secretary of State and this mailing does not come from the department’s Division of Corporations. Maine corporations have received similar solicitations in recent years from entities operating under various names.”
This form contains a short blurb of very small, almost illegible, text that states "C.F.S. is not a government agency and does not have a contract with any governmental agency to provide this service." Additionally, at the bottom of the form, again in tiny text, states that "The state of Maine annual report can be filed directly thought the State for the statutory fee of $85.00." According to the Department of the Secretary of State’s website, “The 2021 annual report is not available until January 1, 2021. At that time, the updated form will be available online and corporate entities will have until the deadline of June 1, 2021 to complete the report filing with the Secretary of State’s office. The annual report filing fee for established domestic business entities is $85, nonprofit corporations is $35 and foreign business entities is $150.”
The State of Maine only charges $85.00 for LLC's and other business to register with the state. C.F.S. is is charging $185.00 of that $100.00 is hidden under the guise of a C.F.S. processing fee and a state filing fee of $85.00. While processing fees are understandable, a one hundred dollar filing fee seems to be a bit of an over-charge. This is a misleading solicitation scheme that has yet to be thoroughly discussed by mainstream media in the state of Maine. I just happened to discover this while actually writing a check to the organization and happened to notice the tiny text mentioned above. I tried to Google this company and the filing report, seven ways to Sunday, and came up with nothing. I then decided to follow up with the state website to see if I could pay online whereby, I found the State of Maine's warning. Based off of my research, I do not think that this notice of fraudulent/ misleading solicitation has made a sufficient circulation through the small business community. It is bad enough that COVID has impacted Maine's wonderful small business's and now a greedy "business" is taking advantage of our kind hearted and well-intentioned business owners. I am not sure of the extent of this misleading solicitation, but it frankly disgusting at any scale.
Small Business owners beware.
Below is the form that C.F.S. is sending out to small businesses and LLC’s. As I mentioned earlier, I completed the form, wrote a check, then noticed tiny text stating that this agency is not affiliated with any state government.
Links & Sources for more information
C.F.S. 2021 Annual Report Instruction Form
“The “solicitation form” from an organization identified as “C.F.S.” looks similar to the Division of Corporations’ annual report form, but it is not prescribed nor recognized by the Maine Department of the Secretary of State and this mailing does not come from the department’s Division of Corporations. Maine corporations have received similar solicitations in recent years from entities operating under various names.” —Secretary Dunlap
