Across the country, antagonists and antigovernment “sovereign citizens” are flooding states and counties with liens like the ones Jarrett and others show how to file. In the claims, they often allege government officials owe them money or property, a tactic the U.S. Justice Department and nonpartisan Congressional Research Service have identified as a form of “paper terrorism.” Other filings aren’t about retribution. Instead, they’re financial maneuvers aimed at businesses, claiming to be owed cash, cars and homes.
Consumer credit expert John Ulzheimer said these liens can complicate a person’s ability to obtain a mortgage or a business’ chances of securing lines of credit. In some cases, he said, these filings can even derail job applications for positions that require thorough background checks.
“It seems too easy to me that someone can do this,” Ulzheimer said.
A Times investigation found that these claims, which were designed to be straightforward and quick to file, are inherently vulnerable to abuse, inflicting financial harm and costly legal battles. A single false filing can claim an individual or business owes debts worth hundreds of millions or even trillions of dollars. Others flood victims with repeated — and often nonsensical — filings that make it appear they are entangled in complex financial disputes.
Among The Times’ findings:
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In California, it costs $5 to record a lien on the secretary of state’s website, but it can take thousands of dollars for the victim to remove a fake one from the public database.
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The state does not notify a person when a new filing lists them as owing a debt. Many of those targeted — including judges, politicians and government employees — said they had no idea a spurious lien or other frivolous UCC filing had named them until contacted by The Times.
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Hundreds of UCC filings with no apparent legal basis listed the home addresses of government officials and prominent power brokers, turning the state’s public database into a doxing tool.