Submitted by UCS on September 2, 2015

Did you know these 5 things about FRAUDULENT UCC FILINGS?

Did you know these FIVE THINGS ABOUT FRAUDULENT UCC FILINGS?

1. There are an ever increasing number of UCC filings being submitted by “Sovereign Citizens”. According to the FBI, “Sovereign citizens are anti-government extremists who believe that even though they physically reside in this country, they are separate or “sovereign” from the United States.” Self-described sovereign citizens take the position that they are answerable only to their particular interpretation of the common law and are not subject to any statutes or proceedings at the federal, state or municipal levels.

2. What to look for? These filings often share references to the U.S. Constitution, have the Secured Party Name written in all capital letters and/or signatures followed by the words “Sovereign Living Soul.”

3. These filings may not create any legal liability for the named debtor, but can cause economic harm. A prospective lender that discovers one of these financing statements that purports to relate to a large outstanding debt may be unwilling to extend credit to the person named as debtor.

4. Maryland Senate Bill 77 has now put into place a procedure to deal with such situations. http://mgaleg.maryland.gov/mgawebsite/legislation/details/sb0077?ys=2015rs

5. The National Association of Secretaries of State (NASS) reports that at least 19 states grant the filing office broad discretion to reject a materially false or fraudulent UCC record for filing. At least 14 states authorize the filing office to take corrective action for existing filings and at least 9 states do not charge any fee to authorize corrective actions through an accelerated judicial review process.

Feel free to contact us for assistance or if you have experienced any issues with Fraudulent Filings.

This material is intended for general information purposes only. It does not constitute legal advice. The reader should consult with knowledgeable legal counsel to determine how applicable laws apply to specific facts and situations. Since it is possible that the laws or other circumstances may have changed since publication, please contact an attorney to discuss any action you may be considering as a result of reading this information.