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    Friday, May 10, 2024

    Illegally operating firms pay $1.1 in state fines

    Fines against out-of-state companies doing business illegally in Connecticut brought $1.1 million into the general fund last fiscal year, the state announced Tuesday.

    Secretary of the State Denise Merrill and Attorney General George Jepsen said more than 240 companies faced fines during the 2016 fiscal year. The largest fine amounted to $39,630, paid by Sidney Frank Importing Co. Inc.

    Merrill said many instances of companies failing to register in Connecticut were unintentional, so the state's chief business registrar has launched a new online tool intended to ease the pain for out-of-staters to form businesses in Connecticut.

    "It is worth noting that the amount collected is significantly lower than last year, which leads us to believe that efforts to inform out-of-state businesses of their responsibilities have been successful," she said in a statement.

    In the previous fiscal year, $1.8 million in fines had been levied on more than 350 businesses operating illegally in Connecticut.

    Jepsen said registration protects consumers by ensuring that all businesses are held accountable for their actions in Connecticut.

    "It is my continued hope that, through these joint enforcement efforts, we can educate out-of-state businesses about their responsibilities under Connecticut law and help to encourage compliance," Jepsen said in a statement.

    "Consumers should make sure companies and individuals they do business with are registered, properly licensed, insured and competent," added Connecticut Better Business Bureau spokesman Howard Schwartz.

    A wide variety of businesses are required by the state to pay for a certificate of authority from the Secretary of the State's Office to do business in Connecticut.

    Violators face a monthly fine of up to $300 for operating in Connecticut illegally. Out-of-state companies authorized to do business in state must file an annual report with the state.

    A complete list of companies paying fines last fiscal year can be found at http://www.ct.gov/sots.

    l.howard@theday.com

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