“Tax Lady” Roni Deutch Sued for $34M for Alleged Fraud
08/27/2010 // WPB, FL, USA // Personal Injury Lawyers News // Nicole Howley
Sacramento, CA– State officials have filed a lawsuit against the “Tax Lady” for allegedly “swindling thousands of clients.” Sacramento-area tax attorney Roni Lynn Deutch, who is widely known for her restless TV commercials, has been sued for $34 million on Monday, August 23, 2010, as reported by the Los Angeles Times.
The Attorney General Jerry Brown filed the lawsuit against the “Tax Lady,” who runs a $25 million-a-year legal empire. The lawsuit alleges that Deutch’s practice is basically a fraud, which has clients that pay thousands of dollars in legal fees but only receive little legal assistance or no legal assistance at all.
According to the lawsuit, Detuch promises to assist people who are having Internal Revenue Service (IRS) problems. But the lawsuit claims that only 10 percent of her clients ever actually get their debt problems resolved. Most of her clients either quit or were terminated by Deutch’s law firm, who are then denied refunds after the clients paid the bill for work that was never actually done.
Deutch’s TV commercials are allegedly filled with “misleading statements.” In one of the commercials, three clients claimed they had thousands of dollars of IRS debt cleared, when in actuality their debts were put on hold, all while the penalties and interest continued to grow.
Brown exclaimed, “Tax Lady Roni Deutch is engaged in a heartless scheme that swindled people with tax problems.”
Brown is currently trying to obtain a court order to stop her advertising. A hearing is scheduled in the Sacramento Superior Court on Wednesday, August 25, 2010.
Legal News Reporter: Nicole Howley-Legal news for business litigation lawyers.
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