- June 16, 2021
- Posted by: Stratford Team
- Category: Business
In Rhode Island, a “bogus” lien on your business’s assets is always just a few clicks away. Indeed, without consent, warning, or any factual basis, any individual with internet access can allege a secured interest in any named collateral – including your business’s real and personal property – simply by filing a Uniform Commercial Code (“UCC”) financing statement with the Rhode Island Secretary of State’s Office that represents such an interest. During this automated process, the Secretary of State’s Office has neither the opportunity nor the discretion to reject UCC filings under the suspicion of illegitimacy or fraud.
The intent behind fraudulent filings varies. Perhaps the goal was to damage the named debtor’s reputation through a publicly available filing. Perhaps the objective was simply to harass or inconvenience the named debtor. Regardless of the underlying motivation, a fraudulent filing can inflict real…
