More than 312 firms paid penalties for operating businesses in Connecticut without legal authority in fiscal year 2014, Connecticut Secretary of the State Denise Merrill and Attorney General George Jepsen announced Friday.
In a joint effort of their offices, Merrill and Jepsen pursued thousands of delinquent out-of-state businesses, recovering $1.6 million in fines.
Penalties ranged between $100 to $38,910. Top five settlements came from companies based in Delaware, Arizona, New York, and Arkansas, all of which paid over $25,000.
“Whether intentionally or not, out-of-state companies that fail to register and obtain a certificate of authority to do business here undercut Connecticut companies and make it difficult to provide accountability for Connecticut consumers,” said Merrill.
In Connecticut, approximately 50,000 foreign entities have properly filed with the Secretary of the State’s office for authorized business transactions.
Companies that violate the law face a fine of $300 for every month the company is transacting business in the state without legal authorization.
The $1.6M fine marks a nearly 25 percent increase from total fines collected during the previous fiscal year.
