States Say Scammer is Bilking Businesses

     RALEIGH, N.C. (CN) – A California company is sending bogus letters to North Carolina businesses demanding $125 if they want to stay in business, the state attorney general says. A spokeswoman for the N.C. secretary of state says a dozen other states are investigating Compliance Services as well.

     Attorney General Roy Cooper sued Sherman-Oaks based Corporate Services dba Compliance Services and its principal, Selwyn J. Monarch.
     The state claims that Monarch sends official-looking letters to North Carolina businesses, saying they must send him copies of their annual meeting minutes and $125 to comply with state law. The letters bear the heading, “Annual Minutes Requirement Statement Directors and Shareholders.”
     There is no such law in North Carolina Secretary of State spokeswoman Liz Proctor said. She added that Monarch’s letters are “designed to look official.”
     A judge Wake County Superior Court granted the state’s request for a temporary injunction to seize all mail going to a mailbox at a UPS Store in downtown Raleigh.
     The Texas Attorney General also has obtained a restraining order against the defendants for deceptive trade, according to the complaint, and several other states have warned businesses about the scam.
     Monarch did not return phone calls.

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