MORGANTOWN — Inquiries flooding into West Virginia Secretary of State Mac Warner’s office indicate all or a majority of the roughly 103,000 businesses registered in the state received what an office spokesman called “deceptive” documents in an attempt to charge businesses $75 to file their mandatory annual reports.
One such business owner reached out to The Dominion Post hoping to warn others of a potential scam.
After a decade submitting the annual reports and the associated $25 fee, West TV LLC owner Mike Ellis was suspicious when documents showed up earlier this week asking him to provide $100 to Workplace Compliance Services to file the report for him.
His suspicions were justified.
Mike Queen, communications director and deputy chief of staff for Warner, said there is nothing inherently illegal or unusual about a third party charging to provide a service — in this case, to act as a middle-man in the filing process.
It’s the official-looking nature of the documents being sent to business owners all over the state that’s caught the eye of both Warner’s office and that of the state’s attorney general.
“While it’s not illegal, it’s certainly very deceptive. Deceptive to the point that our legal division and the attorney general’s office are attempting to make contact with at least one company that has sent this solicitation,” Queen said, explaining the documents provided by the solicitor are not endorsed or encouraged by the secretary of state.
Warner’s Elections Director and Deputy Legal Counsel, Donald Kersey, said the company in question has a certificate to do business in West Virginia through a foreign corporation exemption, but the exemption is under the name of an incorporated company based in Michigan.
“Workplace Compliance Service isn’t their name. It’s another name. But that’s what’s on the form,” Kersey said. “If you’re looking for an answer as to whether it’s a scam or not, I really don’t know. I do know the parent organization is registered in Michigan and we have the certificate of authority for them to engage in interstate commerce under the parent name, not under the doing-business-as name or trade name,” which is Workplace Compliance Service.
Queen noted the documents ask the business owner to submit the $100 payment by Jan. 11. The deadline for 2019 business reports is July 1.
“So that sort of creates some urgency to send them the $75 additional dollars, and then they will file the annual report for that company,” Queen said.
Kersey said the early deadline could also be due to the solicitor reaching out to so many businesses that it will need the additional time to get the reports submitted to the state.
There is no information included in the solicitation that is not publicly available. Further, Queen said the solicitors do typically follow through and provide the report and $25 fee on behalf of the business.
Information provided by Warner’s office explains that businesses can freely engage with third-party vendors to file annual reports.
That said, is there any valid reason to pay $100 in order to pay $25?
“We would suggest not,” Queen said. “This is a service, but it certainly is three times the amount that you really need to pay.”
Queen went on to say it’s never been easier for businesses to file and check their annual reports. In the 2018 reporting year, 97 percent of the 103,000 business registered in West Virginia filed online. There is an additional $1 charge to file online, making the fee $26.
Queen credits the Legislature for providing the secretary of state’s office the resources to streamline the process of creating and maintaining a business in West Virginia.
He points to the One-Stop Business Center, located at 1615 East Washington St., Charleston, and business4wv.gov as business solutions that bring the secretary of state’s office, Work Force West Virginia, the West Virginia Tax Office and the West Virginia Division of Labor under one umbrella.
“West Virginia really is leading the country in making it easier than ever to file and do business in West Virginia and maintain your registration,” Queen said. “We have the only four-agency single location business and licensing center in the nation … It’s a model that other states have come in to look at.”
Twitter @DominionPostWV.
