(Washington, D.C.) The Justice Department has filed a civil injunction lawsuit seeking to shut down Mo’ Money Taxes.
The Memphis based tax-preparation company once had 300 offices in 18 states.
As we’ve reportedly extensively in the past, numerous customers have said they could not get their money from the company.
Owners Markey Granberry and Derrick Robinson as well as store manager Eumora Reese are accused of, “creating and maintaining a business environment that encourages the preparation of fraudulent federal income tax returns.”
The government suit alleges, “the defendants promote a culture that favors volume and profits over accuracy and integrity, and creates an environment where fraudulent return preparation and tax-law violations flourish. According to the complaint, Mo’ Money Taxes’ managers, licensees and employees prepare fraudulent returns that cause their customers to incorrectly report their federal tax liabilities and underpay their taxes and charge customers bogus and unconscionably high fees.”
Granberry and Robinson now do business under the name Marquis Taxes and, along with Reese, under the name Southern King Taxes.
According to the complaint, the defendants encourage Mo’ Money preparers to:
- Falsely claim the earned-income credit;
- Claim improper filing status;
- Claim bogus education credits;
- Improperly prepare returns using paystubs rather than employer-issued W-2 forms;
- Fabricate bogus W-2 forms;
- File tax returns without customers’ consent;
- Sell false and deceptive loan products; and
- Charge deceptive and unconscionable fees
The complaint cites alleged examples of Mo’ Money Taxes customers in Memphis; Atlanta; Richmond, Va.; Jackson, Miss.; and Nashville, Tenn., whose returns had such fraudulent claims.
The complaint alleges that the estimated tax loss from fraudulent tax return preparation at Mo’ Money Taxes offices in Memphis, Atlanta, Richmond and Jackson in 2011 exceeds $9 million.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, “Most tax preparers are honest. We owe it to them and to all American taxpayers to use appropriate law enforcement tools to stop those who prepare fraudulent tax returns or who lure customers with deceptive loan products.”
The United States previously obtained a permanent injunction against Toney Fields and Trumekia Shaw, who operated a Mo’ Money Taxes location in Nashville.