Deceptive Letter Duping Colorado Businesses

DENVER (CBS4) - Colorado's secretary of state is calling a letter sent to business owners deceptive. Some of the business owners called CBS4 when it asked them to pay a fee. The fine print could lead to a costly problem.

In Colorado businesses are required to file an annual periodic report with the secretary of state's office. Notification comes in the mail in the form of a postcard and the fee is $10.

Diane Krueger got an official-looking letter and then contacted CBS4.

"Oh they are getting smart, aren't they," Krueger said. "With how they send out these things out … it's really disturbing."

The letter states if they don't file their periodic report they will become "noncompliant," and after a second notice, "delinquent." It says to submit the "annual fee of $225" and "act immediately."

But it's the fine print at the bottom that states this "has not been approved or endorsed by any government agency ... this is a solicitation."

"We need to tell people it's $10," Colorado Secretary of State Scott Gessler said. "They shouldn't waste their time with an organization like this. They shouldn't get ripped off."

Gessler said he suspects people will respond to the letter and pay $225 for something that can be done in 10 minutes for $10 on his website.

"We have nothing to do with this company. This is completely unauthorized by us," Gessler said.

The company is called Corporate Controllers Unit and has a post office box in Denver, but is based in Nevada. Its website did not have a phone number, so CBS4 e-mailed them, but didn't hear back.

"Certain companies like Dunn and Bradstreet -- they purchase information from us," Gessler said.

That's how Corporate Controllers Unit likely got the names and addresses of Colorado businesses.

Gessler says his office has mailed warnings to business owners.