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Terry Goddard Announces $628,000 Judgment in Business Fraud Case

(Phoenix, Ariz. - Nov. 4, 2010) Attorney General Terry Goddard today announced that Maricopa County Superior Court has entered a $628,066 judgment against Vahe Zakaryan, 45, of Glendale, Calif., whose business, operating under the name Board of Business Compliance, sent deceptive solicitations to hundreds of Arizona corporations.

The judgment, entered by default this week due to Zakaryan’s failure to appear in court, also prohibits him from doing virtually any business in Arizona.

Last April, the Attorney General sued Zakaryan and Board of Business Compliance after the company mailed solicitations to companies stating that they needed to pay fees in the amount of $125 for the preparation of annual minutes. The form enclosed with the solicitation looked official and included the “Corporation Number” assigned to the business by the Arizona Corporation Commission. However, the address was a private mail box at a Phoenix UPS store, not the address of the Corporation Commission.

The solicitation further stated that annual minutes were “required, or the shareholders would not be in compliance with Arizona law, and could be held liable for corporate debts and obligations.” In fact, Arizona corporations are not required to prepare or file annual minutes.

Between July and November 2008, Zakaryan used this scheme to collect more than $60,000 from 552 Arizona corporations.

The default judgment entered this week in Maricopa County Superior Court requires that Zakaryan and his business refrain from:

  • Soliciting any Arizona consumer or business by mail, telephone, or the Internet;
  • Operating any business in the State of Arizona which purports to offer services to businesses; and
  • Receiving any money, in any form, from any Arizona consumer or business in response to the type of solicitation used by Zakaryan and his business.

The judgment further requires that Zakaryan shall comply fully with the Arizona Consumer Fraud Act in all future activities within the state and requires him to pay $552,000 in civil penalties, $60,688 in restitution to the victim corporations and $15,378 in costs and attorneys’ fees.

The case was handled by Assistant Attorney General Rebecca Salisbury.

A copy of the default judgment, the defendant’s photo and the deceptive solicitation are attached. For more information, please contact Steve Wilson at (602) 542-8351.