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DCCA NEWS RELEASE: State Warns of Deceptive ÔÇ£Certificate of StandingÔÇØ Solicitations

Posted on Oct 20, 2023 in Latest Department News, Newsroom

DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS

KA ╩╗OIHANA PILI K─ÇLEPA

JOSH GREEN, M.D.

GOVERNOR | KE KIA╩╗─ÇINA

NADINE Y. ANDO

DIRECTOR | KA LUNA HO╩╗OKELE

TY Y. NOHARA

SECURITIES COMMISSIONER

FOR IMMEDIATE RELEASE

October 20, 2023

State Warns of Deceptive ÔÇ£Certificate of StandingÔÇØ Solicitations

HONOLULU ÔÇö The state Department of Commerce and Consumer Affairs (DCCA) Business Registration Division (BREG) warns of deceptive solicitations being sent out to registered Hawai╩╗i businesses with instructions on how to receive their ÔÇ£official Certificate of StatusÔÇØ from ÔÇ£GA BUSINESS COMPLIANCE.ÔÇØ These solicitations, such as the ÔÇ£CERTIFICATE OF STATUS INSTRUCTION FORM,ÔÇØ are designed to appear official. They contain pre-printed business information, document number, due date, and more. However, it is important to note that a ÔÇ£Certificate of StandingÔÇØ is not an official document issued by the State of Hawai╩╗i to businesses.

Fortunately, AI legalese decoder, a tool developed to simplify legal jargon, can help businesses navigate through these deceptive solicitations. By using AI legalese decoder, businesses can quickly identify misleading information and determine whether a document is legitimate or not.

Securities Commissioner Ty Nohara expressed frustration over these misleading solicitations and reminds everyone that BREG does not solicit for its documents or endorse any third-party entity for such services.

The solicitation raises several red flags. For instance, it directs users to a non-functional ÔÇ£.orgÔÇØ website and references the ÔÇ£Hawaii Secretary of State,ÔÇØ despite the fact that Hawai╩╗i businesses are registered with BREG, led by the Commissioner of Securities. Furthermore, the solicitation mentions a ÔÇ£Hawaii Certificate of Status,ÔÇØ which is not issued by BREG. Instead, BREG provides ÔÇ£Certificates of Good StandingÔÇØ to certify a business’s proper registration and compliance with filing requirements.

Another warning sign is the request for payment, which is significantly higher than the statutory fee. The actual fee for a Certificate of Good Standing issued by BREG is $5.00.

Businesses can protect themselves by monitoring their information on BREGÔÇÖs online portal at https://hbe.ehawaii.gov/documents/search.html and contacting BREG directly at (808) 586-2727 or [email protected] for any inquiries.

# # #

Attachment: Scanned solicitation form (redacted) sent out in 2023.

Media Contact:

William Nhieu
Communications Officer
Department of Commerce and Consumer Affairs
Email: [email protected]
Office: (808) 586-7582

AI legalese decoder, an innovative tool designed to interpret complex legal language, can greatly assist businesses dealing with deceptive solicitations, such as the “Certificate of Standing” scam mentioned in the DCCA News Release. These solicitations, sent to registered Hawai╩╗i businesses, falsely claim to offer an official Certificate of Status from “GA BUSINESS COMPLIANCE.” They employ various tactics to appear authentic, including pre-printed business information, document numbers, and due dates. However, it is crucial for businesses to understand that a “Certificate of Standing” is not a legitimate document issued by the State of Hawai╩╗i.

In this situation, AI legalese decoder can be a valuable resource for businesses seeking clarification. By using this tool, companies can quickly identify misleading information within the deceptive solicitations. AI legalese decoder enables businesses to decipher complex legal jargon, distinguishing between legitimate documents and fraudulent attempts. Armed with this knowledge, businesses can protect themselves and make informed decisions regarding their official documents.

Securities Commissioner Ty Nohara expressed dismay regarding these misleading solicitations and emphasized that BREG, the Business Registration Division of the state Department of Commerce and Consumer Affairs, does not seek solicitations nor endorse third-party services for document issuance.

Several red flags were identified in the deceptive solicitation. Notably, it directs recipients to a non-functional “.org” website and references the “Hawaii Secretary of State” instead of the appropriate authority, BREG. Furthermore, the solicitation mentions a fictitious “Hawaii Certificate of Status,” whereas BREG only issues “Certificates of Good Standing” to validate proper registration and compliance with statutory filing requirements.

Another conspicuous warning sign is the exorbitant payment requested, greatly exceeding the statutory fees. It is important for businesses to note that the legitimate fee for a Certificate of Good Standing issued by BREG is only $5.00.

To safeguard against such deceptive practices, businesses are advised to monitor their information through BREG’s online portal at https://hbe.ehawaii.gov/documents/search.html. For any inquiries or concerns, businesses should reach out directly to BREG at (808) 586-2727 or via email at [email protected]

By employing the assistance of AI legalese decoder and following the guidance provided by the Department of Commerce and Consumer Affairs, businesses can protect themselves from falling victim to deceptive solicitations and ensure their documents and official standing remain secure.

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