Colorado Homeowners Targeted in Business Fraud Scheme

State lawmakers work to address issue as residents report their addresses used to register fraudulent LLCs

Mar. 18, 2026 at 3:08am

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Homeowners across Colorado have reported their home addresses being used to register businesses they have no affiliation with, often LLCs with random letter combinations. This has led to issues with the IRS and other government agencies. State lawmakers are working on legislation to streamline the process for investigating these fraudulent business filings, but homeowners want to see more done to protect their personal information.

Why it matters

This business fraud scheme has caused significant headaches and concerns for Colorado homeowners, who are finding their personal addresses being used for potentially illegal purposes without their knowledge or consent. It highlights vulnerabilities in the state's business registration system that need to be addressed to better protect residents' privacy and security.

The details

Homeowners like Mark Roybal, Sarah Harrison, Buddy Bolster, and Diane Terhune have all reported finding their home addresses used to register LLCs they had no involvement with. The businesses often have random letter combinations as their names and list a separate LLC as the registered agent, which can be tied to multiple suspicious filings. Roybal found hundreds of similar businesses registered in Colorado in recent months. Reporting the fraudulent activity to authorities has proven to be a lengthy and frustrating process for homeowners.

  • In early March 2026, Mark Roybal received a letter from the IRS about an LLC registered at his Pueblo West home.
  • Last month, News5 Investigates reported a similar case involving Tim Johnson in Colorado Springs.

The players

Mark Roybal

A Pueblo West homeowner who discovered an LLC he had no affiliation with was registered at his home address.

Sarah Harrison

A Colorado Springs homeowner concerned about an LLC using her address without her knowledge.

Buddy Bolster

A Colorado homeowner shocked to find his address being used for an LLC he had no connection to.

Diane Terhune

A Colorado Springs homeowner who wants to see more checks in the business registration system to prevent this type of fraud.

Sen. Lisa Cutter

A Democratic state senator from Jefferson County working on legislation to address business fraud in Colorado.

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What they’re saying

“It's concerning when you start getting stuff from the IRS to an LLC and I was concerned that they're doing something that's illegal, and my address is tied to this LLC.”

— Sarah Harrison

“It just irritates the heck out of me when I see this, and people just kind of let it slide and just not do anything about it.”

— Buddy Bolster

“There's always more that we can do to perfect our systems. It would be ideal if we were able to verify addresses upfront eventually, and I think that's something that the state would definitely consider looking into, but that requires a lot of resources.”

— Sen. Lisa Cutter, Democratic State Senator, Jefferson County

What’s next

The bill addressing business fraud in Colorado is currently making its way through the state legislature. If passed, it would allow the Secretary of State's office to more easily mark fraudulent LLCs without having to send them all to the Attorney General's office for investigation.

The takeaway

This business fraud scheme targeting Colorado homeowners highlights the need for stronger verification processes and safeguards in the state's business registration system. While lawmakers are working to improve the investigative process, homeowners want to see more proactive measures taken to prevent their personal information from being misused in the first place.