Man settles with Colorado AG after allegedly filing over 15K fraudulent businesses

DENVER ( KDVR ) — A man who filed 15,433 fraudulent businesses with the Colorado Secretary of State’s office over 18 months will dissolve those businesses and pay $75,000 in penalties under a settlement arranged with the Colorado Attorney General’s Office.

The settlement was announced Wednesday by Attorney General Phil Weiser, who said in a release that the filings were made during a period when the secretary of state reduced new business filing fees from $50 to $1. The registrant was given $49 credits for each business formation.

By creating these businesses and obtaining the fee credit, in addition to selling or transferring ownership of the businesses, the Attorney General’s Office alleged that Marcio Garcia Andrade was able to “unjustly” enrich himself.

“Fraudulent business filings are dangerous tools in the hands of bad actors. Consumers might assume these companies are legitimate and get lured into making transactions — including extending credit to — with an illegitimate actor. And consumers may be unable to reach a fake business with any concerns,” Weiser said in a release. “The defendant in this case is being held accountable for his conduct, and my office will continue to pursue those who attempt to defraud the state and harm consumers with false business filings.”

According to the lawsuit filed in September 2023, Andrade used a Northglenn residential address in forms he filed with the state between February 2022 and August 2023. However, the property owner of the address nor the resident permitted Garcia Andrade to use the address in his business filings, and Andrade did not have a primary residence or usual place of business in Colorado. Therefore, Andrade was ineligible to serve as a registered agent in the state.

Under the settlement, Andrade cannot file any new businesses that do not comply with state law. He will also repay $75,000 over 18 months to Colorado.

According to the court filing, Andrade was previously permanently enjoined from running fraudulent credit service businesses under a 2019 settlement with the Federal Trade Commission .

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