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Corporate Ownership Fraud Task Force Focuses on Rise in Fraudulent UCC Filings
Posted Date: 8/8/2012

Contact: Catherine Lu 
             (702) 486-6982 / 334-7953 

(Washington, DC; August 8, 2012) – The Nevada Corporate Ownership Fraud Task Force, formed in 2011 by Secretary of State Ross Miller to investigate business entities suspected of being involved in illegal activities, spotlights the rise of fraudulent UCC filings across the country with a new report released by the National Association of Secretaries of State (NASS). The report provides substantive guidance for states contemplating ways to develop faster, less costly options for keeping bogus liens out of public records.

Titled “State Strategies to Subvert Fraudulent Uniform Commercial Code (UCC) Filings,” the report offers recommendations for leaders and policy makers enhancing state policies for removing fraudulent Uniform Commercial Code (UCC) filings from public record.

“Given the dramatic rise in the number of fraudulent UCC filings in the past few years, NASS produced this report to help identify new ways that states can expedite relief to victims and potentially reduce a significant amount of backlog in our courts,” said Miller, NASS president.

The report was created based on input from secretaries of state and state business division professionals throughout the U.S. Drawing from state examples, it highlights common elements of bogus UCC filings and new state laws that seek to address the proliferation of such claims. The national increase in the number of fraudulent UCC filings, and the growing sovereign citizens movement that is fueling this jump, are also explained.

The important role of the UCC in the creation of state solutions is discussed, along with the influence that the model law has on the role and the authority of state filing offices. Appendices include details on UCC-related laws and practices in many states, including criminal and civil penalties for submitting fraudulent liens.

The report is a follow-up to a set of 2006 recommendations produced by a joint NASS/IACA (International Association of Commercial Administrators) Bogus Filings Task Force, which established landmark guidelines for judicial remedies and criminal penalties related to fraudulent UCC filings.

Download the full report online:

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