Louisiana Men Sued in '100 Freedom' Scam
The Justice Department announced this week that it has sued two Louisiana men in federal court, seeking to halt an alleged tax scam involving the preparation of fraudulent tax returns for customers.
The lawsuit alleges that Richard A. Fuselier, Richard J. Ortt and their business, Compensation Consultants, of Lafayette, Louisiana, prepare tax returns for customers that claim fraudulent deductions for all wages earned.
According to the complaint, Fuselier and Ortt falsely promise their customers “100% tax freedom.” Fuselier and Ortt allegedly charge customers $500 per year to prepare and file tax returns claiming bogus deductions and tax refunds. The Justice Department alleges that the defendants have filed over 400 false tax returns for customers since 2001. In addition, the complaint alleges, the defendants instruct customers to submit bogus tort claims against the government when their tax refund requests are denied.
“Peddlers of tax scams and those who participate in them cheat all law-abiding taxpayers,” said Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division. “We are committed to stopping fraudulent tax promotions and identifying those who have participated in them.”
Today’s filing also seeks a court order permanently barring the defendants from preparing federal tax returns for others. The complaint also asks the court to order the defendants to give the Justice Department their customers’ names, mailing and e-mail addresses, phone numbers, and Social Security or taxpayer identification numbers.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.