Hundreds of California businesses registered with Secretary of State may be fraudulent, investigation finds

By Ross Palombo

More than 800 business registrations filed last year in California may have been fraudulent, CBS News California Investigates has found.

That figure represents a small proportion of the more than 3 million businesses registered in the state in 2025, but it appears to indicate a growing problem with identity theft.    

Identity theft experts say criminals are creating fake business entities by targeting a specific population: legal immigrants.

People can register a business, such as a limited liability or stock corporation, through the California Secretary of State’s office. Typically, it requires cursory information about the business name, who is part of the business and a fee. The Secretary of State’s office says using its secure portal means “stronger protection from business identity theft and fraud.”

On Nov. 6, 2023, someone claiming to be Tomas Andriusonis registered a business named “Andriusonis Kitchen & Bath,” and listed an address at a location in North Hills.

When CBS News California Investigates went to the address, it turned out to be a private home. Both occupants said they knew nothing about a kitchen and bath company.

The real Tomas Andriusonis lives half a world away, just outside of Amsterdam, in the Netherlands.

When contacted by senior investigative reporter Ross Palombo, Andriusonis said he doesn’t own a kitchen and bath business and has never been in that line of work.

It’s not just him. CBS News California Investigates randomly sampled more than 10 suspicious Secretary of State business filings, which included construction companies, senior care centers, nail salons and pharmacies. None appeared to be real businesses. All of the locations checked were private businesses or apartments.

Three separate businesses were registered to one small Glendale apartment.

David Maimon, a fraud investigator for SentiLink, a provider of identity and risk solutions, said he uncovers new trends in fraud to help banks avoid losses.

“We find a lot of identities connected with former legal immigrants here in the U.S.,” Maimon said.

Maimon uncovered the new trend in identity theft by analyzing SentiLink data, which he said shows the apparent targeting of immigrants who have moved to the U.S. for school or temporary work, then returned to their home countries.

Maimon said criminals use these stolen identities because those victims are less likely to discover fraud while living abroad. He described this type of identity theft as “gold” for criminals.

According to data from the Federal Trade Commission, there were 135,575 reports of identity theft between Q1 and Q3, which was 97% of the number of reports of identity theft in 2024. The FTC data also show that Los Angeles, Long Beach and Anaheim rank sixth for identity theft among all metropolitan areas in the U.S.

With those “golden IDs,” Maimon said, criminals created more than 800 fraudulent businesses in Southern California last year.

“Once you have a business under your name, then the limits are way higher and you can definitely aim for bigger loans,” Maimon said.

One woman who asked to remain anonymous told CBS News California Investigates that identity theft ruined her life.

Her financial records showed increased spending for a fake construction company registered in her name with the Secretary of State’s office at a Van Nuys address.

Now living in Thailand, the former Penn State student said she discovered 30 accounts with thousands of dollars in total charges, all connected to her name.

“Before this thing happened, my credit score was 800,” the woman said, noting that her credit score has since plummeted to 419.

In Andriusonis’ case, Bank of America eventually filed a lawsuit against him for more than $45,000 in charges that he said he never spent.

“I was a bit in disbelief,” Andriusonis said. “This was very weird to hear, how easily the bank gave out the loan … How easy it was to fake my ID documentation.”

It’s made easy, Maimon said, because registering these businesses with the state makes the businesses seem real.

CBS News California Investigates was able to register a business, “Fake Business, LLC,” with the Secretary of State’s office for $70. With no apparent approval or verification on the Secretary of State’s website, it was possible to register ” within minutes.

California Secretary of State Shirley Weber declined an interview to discuss the business registration process. A representative for Weber’s office said that state law only requires the office to “file” the business, it does not require them to investigate the legitimacy of the entity. The spokesperson said the office does have a fraud detection procedure, but would not elaborate.

“Anyone can go on the internet, pay $200 and there you have it,” said Los Angeles County Sheriff’s Department Sgt. Peter Hish, who works with the Fraud & Cyber Crimes Bureau.

In L.A. County, Hish said business registration fraud is just one part of the 25,000 ID theft cases his Cyberfraud Unit saw last year, victimizing thousands of people along the way, which can have grave consequences.

Hish explained that he’s seen people become suicidal after experiencing identity theft.

One of the women living at a Glendale address being used for a fraudulent business was receiving mail for a company called “YJ Pharmacy” for months. Maimon believes she is one of the many victims who are indirectly affected by these cases.

“I think the state could find way more than 10 businesses in one day,” Maimon said.

But until they do, victims worry about what other businesses they’ll find connected to them down the road.

“I’m not sure who to blame the most,” Andriusonis said.

CBS News California Investigates reached out to Gov. Gavin Newsom for a comment. His office declined repeated interview requests and did not issue a statement.