Paul Hodnefield Corporation Service Company The Honorable Elaine Marshall North Carolina Secretary of State Trevor Timmons Colorado 38 th Annual Conference Savannah Georgia Method ID: 679506
Download Presentation The PPT/PDF document "Bogus Filing Tactics: A Primer" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Bogus Filing Tactics: A Primer
Paul Hodnefield, Corporation Service CompanyThe Honorable Elaine Marshall, North Carolina Secretary of StateTrevor Timmons, Colorado
38
th
Annual Conference – Savannah, GeorgiaSlide2
Method
2Slide3
Clues?
3Slide4
Harassment
4Slide5
Estate
5Slide6
Trust
6Slide7
Address
7Slide8
Amount
8Slide9
General Observations
Lenders are Most Common TargetUCC record serves as basis for defense in foreclosure actions or for proactive litigation.Often names other persons that play a role in the foreclosure process.Harassment is Also Common
Used against businesses or individuals that have crossed the perpetrator.
9Slide10
Preemptive Measures in North Carolina
North Carolina General Statutes§ 25-9-516. What constitutes filing; effectiveness of filing.
(b)(8) In the case of a record presented for filing at the Department of the Secretary of State, the Secretary of State determines that the record is not created pursuant to this Chapter or is otherwise intended for an improper purpose, such as to hinder, harass, or otherwise wrongfully interfere with any person. § 25-9-518. Claim concerning inaccurate or wrongfully filed record.
(b2) Statement by Secured Party of Record. - A person may file in the filing office an information statement with respect to a record filed there if the person is a secured party of record with respect to the financing statement to which the record relates and believes that the person that filed the record was not entitled to do so under G.S. 25-9-509(d).
(b3) Contents of Statement Under Subsection (b2). - An information statement under subsection (b2) of this section must:
(1) Identify the record to which it relates by the file number assigned to the initial financing statement to which the record relates;
(2) Indicate that it is an information statement; and
(3) Provide the basis for the person's belief that the person that filed the record was not entitled to do so under G.S. 25-9-509(d
).
North Carolina takes a proactive approach to fraudulent filers
North Carolina also has a “do not file” list, provided by the federal courts
10Slide11
ULC Hip Pocket Amendment
Developed as an alternative to non-uniform bogus filing legislationIt is not intended to replace existing bogus filing lawsThe amendment introduces the concept of a “trusted filer.”
This is a person that regularly files with a filing office and has provided the office with current contact information sufficient to establish its identityThis person has been issued credentials to access online filing services or has established a prepaid or direct debit account for payment of filing fees.It also provides a mechanism for a person identified as a debtor to file an affidavit of wrongful filing.When the filing office receives such an affidavit, there are set procedures to follow to terminate the filing, including sending notice to the secured party of record
Secured party may bring a court action and the amendment provides rules and procedures in the event of court-ordered reinstatement
There is a filing office administrative review prior to termination of a record submitted by a trusted filer.
11Slide12
2015 Legislation
IndianaPassed bill that requires court approval to file a common-law lien against a public official.UtahHip Pocket Amendments (“HPA”) enacted.
MarylandEnacted law with similar concepts to HPA.New JerseyPassed bill that adds reasons for rejection and exempts records filed by a “registered organization.”
12Slide13
2015 Pending Bills
CaliforniaGives counties more authority to reject potentially fraudulent UCC records.MaineProvides additional reasons for rejection.
New York, Nevada and Kansas Bills revise civil and/or criminal penalties for filing fraudulent UCC records.PennsylvaniaProvides for administrative hearings on fraudulent UCC records.
13Slide14
IT Resources
Disclaimer!I’m not talking about “strawman” filers specificallyMany resources already available (including from my esteemed co-panelists)I
am talking about detection and response in the digital world
14Slide15
Three Keys
Key #1: Know (what is happening on your website)Key #2: Take Action (based on what you are permitted to do)
Key #3: Support Enforcement (whether internal or outside your office)
15Slide16
Key #1
Know your Filers & Your Filing SystemThis used to be easyMove to online makes this harderBut, all is not lost!
16Slide17
Develop a Baseline
Key #1
Know your Filers & Your Filing System
17Slide18
Identify Anomalies
Key #1
Know your Filers & Your Filing System
18Slide19
Investigate (in the graph below, “visitors” #2-7 are each between 130k and 88k visits)
Key #1
Know your Filers & Your Filing System
19Slide20
Block and apologize later
Key #2
Take Action
20Slide21
Collect InformationFiling information
IP addressPayment informationOther filings associated with findings
Key #2
Take Action
21Slide22
Contact Appropriate Security Team(s)State
AgencyContact Law EnforcementState Bureau of InvestigationState Attorney GeneralSecret ServiceU.S. Attorney
Key #2
Take Action
22Slide23
Consider Contacting Advocates for Victims
Consumer ProtectionIdentity Theft UnitCoordinate with Law Enforcement
Key #2
Take Action
23Slide24
Key #3
Support EnforcementFollow their Lead
24Slide25
Affidavits
Key #3
Support Enforcement
25Slide26
Credit Card IssuersBanks
Key #3
Support Enforcement
26Slide27
Develop a Process
Key #3
Support Enforcement
27Slide28
Stick with It!
Key #3
Support Enforcement
28Slide29
Wrap Up
Develop KnowledgeDo What you CanEstablish Relationships
29