Nevada lags other states in its protections against business identity theft, and the secretary of state says “there is no process” to initiate searches for falsified records. Filers do not have to show identification, and no notarized documents are required.īut state law allows the secretary of state to adopt regulations to prevent the filing of fraudulent records. Her staff only ensures forms are filled out correctly. Like most secretaries of state, Cegavske and her staff lack the legal authority to challenge the accuracy of any business document filed with their office. “There are people that are not going to play by the rules,” Cegavske said in an interview. In a statement, the agency said it is “disingenuous” to blame the secretary of state for any loans issued or land sold as a result of fraudulent business filings because lenders and buyers need to do their due diligence. Officials with the secretary of state’s office said it does everything within its authority to prevent the filing of fraudulent documents, but their power is limited under state law and there are few complaints. “If you own your property in an LLC and then somebody fraudulently puts their name as the managing member, that would give them the authority - fraudulently - to sell your property,” she said. Title companies like hers are responsible for vetting real estate transactions and verifying property ownership, so she warned her employees about this problem when she learned about it more than a year and a half ago. “It’s a serious issue,” said Jodi Grover, president of Southern Nevada operations for Ticor Title of Nevada. More than 1.1 million active and inactive business entities are on the secretary of state’s books - and all of them are susceptible to fraud. Secretary of State Barbara Cegavske’s efforts to recruit businesses to Nevada help generate about $180 million in filing fees for the state each year. The lack of safeguards poses hidden risks in Nevada, one of the most popular states to register companies because of its friendly business laws and low taxes. These scams rely in part on lazy lenders who give credit applications and other financial transactions little scrutiny.īy the time the rightful business owners realize what happened, it can be too late, and they’re saddled with bad credit or have to fight to get their property back. Cases in Nevada and other states show how alleged thieves used phony business ownerships to buy cellphones and luxury vehicles en masse and sold off land. Once the records are changed, scammers can exploit the credit and assets of the companies. His story highlights how Nevada businesses are vulnerable to fraudsters because the secretary of state’s office for years has done little to prevent the filing of fake documents.įor as little as $150, anyone can submit records online or in person naming themselves directors or managers of whatever Nevada company they choose - and the secretary of state’s office will accept them, no questions asked. He thought it was fraud - and he filed a lawsuit. Pham didn’t think it was a mistake anymore. Kalhorn had moved the land into another LLC, borrowed nearly $2 million on it from private lenders and was now in default. That should take care of it, he figured.įour months later, Pham got a foreclosure notice in the mail. Pham told his assistant to change it back and send Kalhorn a cease-and-desist letter. In his place: James Kalhorn, a Colorado Springs dentist. Someone apparently had logged onto the secretary of state’s website and removed Pham’s name as the company’s managing member. Everything looked good until she got to Caballos De Oro Estates LLC, a company that held five acres that Pham and a group of investors purchased in northwest Las Vegas for $4.95 million. Pham’s assistant was updating the Idaho-based property developer’s business records with the Nevada secretary of state. Michael Quine Las Vegas Review-Journal has to be a mistake, Andy Pham thought. Bryan Naddafi, attorney for Andy Pham and Caballos De Oro Estates, LLC, discusses how his client’s $4.9 million property was allegedly stolen using the Nevada secretary of state web site on Wednesday, March 28, 2018.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |