During a candidates forum last February while competing for the Democrat nomination to challenge Congressman Chris Smith, Josh Welle told Democrat activists that his company, Severn Pacific, Inc., doing business as Crossdeck, was dissolved in the spring of 2017.
But an officer of Harvard Business Services, Severn Pacific’s Delaware business agent told Patch that Welle’s company submitted an address change on March 3, 2017 . The company, which Welle was the CEO of, then ignored multiple notices from HBS to pay its 2017 taxes. The company was finally dissolved last week, after MMM reported the $130,000 past due taxes.
Michael Bell, vice president of HBS, told Patch, “As we do with all of our clients when their annual fees are due, we send notices via email and mail to renew their Delaware Registered Agent service and annual Delaware Franchise Tax,” said Bell on Monday. “We send notices six months in advance of the due date to give our clients ample time to make payment arrangements. However, Harvard never received any request by phone, mail or email to file the 2017 annual Delaware Franchise Tax on the company’s behalf.”
“Unfortunately, the client did not respond to our notices,” Bell continued. “And the company did not pay the 2017 annual Delaware Franchise Tax. Therefore the state of Delaware assessed a late penalty and interest.”
“Harvard Business Services, Inc. resigned as the Delaware Registered Agent on September 9, 2018,” Bell continued. “On October 2, 2018 Harvard Business Services, Inc. was contacted by phone about the status of the entity, to which we informed the client that we resigned as the Registered Agent and provided options. The client requested Harvard to file a Change of Agent back to Harvard Business Services, Inc. within the state of Delaware’s 30-day grace period to rename us as the Delaware Registered Agent. In order to do this the company had to pay the past due 2017 annual Delaware Franchise Tax.”
“At the same time the client requested we file a subsequent Certificate of Dissolution to formally dissolve the entity here in the state of Delaware, thereby also requiring the client to pay the current 2018 Delaware Franchise Tax per the state of Delaware. The Certificate of Dissolution was approved by the state of Delaware on October 4, 2018 and this client no longer owes anything to the state of Delaware nor to Harvard Business Services, Inc.,” said Bell.
After MMM raised the issue, Welle’s campaign blamed the problem on Harvard Business Services, MMM and Congressman Chris Smith.
Nice leadership, Josh.