Limited Liability Company That Listed Unaffiliated Non-Party As Service Agent In Articles Of Organization Dissolved And Enjoined From Further Fraudulent Or Illegal Acts

Posted: February 13, 2026 / Written by: Joshua Wurtzel, Channing J. Turner, Samuel L. Butt, Thomas A. Kissane / Categories Limited Liability Company, Fraud/Misrepresentation, Injunction

Limited Liability Company That Listed Unaffiliated Non-Party As Service Agent In Articles Of Organization Dissolved And Enjoined From Further Fraudulent Or Illegal Acts

On November 19, 2025, Justice Joel M. Cohen granted the New York Attorney General’s motion under Executive Law sec. 63(12) to dissolve a New York Limited Liability Company and enjoin it from continuing any fraudulent or illegal acts, including but not limited to maintaining fraudulent Articles of Organization. The case is People Of The State Of New York, By Letitia James, Attorney General Of The State Of New York v. The Source Of Wisdom LLC, Index No. 452917/2025.

A non-party, identified as organizer and agent for service of process in Respondent’s Articles of Organization, had filed a complaint with the NYAG’s Bureau of Consumer Frauds and Protection. As described by Justice Cohen, that complaint states:

that “I am writing to report a serious issue regarding a business LLC that has been fraudulently registered under my name and private address without my knowledge or consent. I believe this is a case of identity theft or unauthorized use of my personal information” and requests, among other things, “to have any associated Limited Liability Company (LLC) closed and canceled”.

Slip op., p. 2 (quoting non-party complaint.)

Respondent did not appear, and Justice Cohen granted the New York Attorney General’s Petition:

Executive Law § 63(12) provides for relief upon petition by the NYAG “whenever any person shall engage in repeated fraudulent or illegal acts or otherwise demonstrate persistent fraud or illegality in the carrying on, conducting or transaction of business.” Executive Law §63(12) defines “fraud” and “fraudulent” to include “any device, scheme or artifice to defraud and any deception, misrepresentation, concealment, suppression, false pretense, [or] false promise.” . . .

The NYAG has established that Respondent’s Articles of Organization misrepresent the address at which Respondent may receive process from the Secretary of State. . . .

Id., pp. 1-2 (quoting statute.)

Justice Cohen therefore ordered that Respondent be dissolved and “enjoined from continuing any fraudulent or illegal acts including but not limited to maintaining fraudulent Articles of Organization” and directed the Department of State, upon receipt of a certified copy of the Order that the AG was directed to send, “remove the address of the current registered agent from its public records, including from the Department of State's Division of Corporations and Corporation and Business Entity Database”. Id., p. 3.

Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning the formation or maintenance of Limited Liability Companies or other corporate entities.