By
Kenneth Long on April 21, 2011
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Roni Deutch, the self-proclaimed "Tax Lady" that claimed a 99% success rate, has been shut down. Still, she continues to resist authorities who are trying to recoup some money paid by her defrauded clients.
California Attorney General Kamala Harris requested that contempt charges be filed on April 20, 2011. Deutch apparently has violated a court order filed August 31, 2010 that barred the defendant from destroying evidence.
California investigators estimate that Deutch has shredded approximately 2 million documents to hinder the investigation against her. Harris claimed that "Deutch has been routinely shredding documents on an almost a weekly basis."
In addition to destroying evidence, Deutch has been emptying bank accounts of funds that were supposed to go toward repaying her victims. Instead, the money has gone to her friends, family and even a NASCAR team. Roni Deutch sponsored the #06 Dodge, which was driven by David Starr in the 2009 Coca Cola 600 race in Charlotte, NC. Apparently her sponsorship was considered more important than repaying the victims of her firm, many of whom were completely wiped out by what is frequently referred to as the
Roni Deutch tax scam.
California regulators have already taken steps to seize all funds held by Deutch's law firm as well as in her personal accounts. Still, Deutch managed to withhold hundreds of thousands of dollars in equity following the sale of her home to a media company. She withdrew $241,000 in business and personal holdings from a single bank while failing to issue $435,000 in client refunds within 60 days of a preliminary injunction filed by Harris on November 17, 2010.
The $34 million lawsuit filed against Deutch has stretched over many months. Since Deutch has violated several terms of the judge's orders, the attorney general has asked that contempt charges be filed against Deutch. Furthermore, fines of $1,000 a day and 5 days in prison for each count of contempt have been sought. It is expected that a receiver will be appointed by the court so that assets may be liquidated for the purpose of partially refunding her victims.
Attorney General Kamala Harris released the following statement:
"Deutch showed herself to be a predator for profit, preying on innocent, hard-working people who were simply hoping to settle their accounts with the IRS. By defrauding these victims, and then pleading poverty, she created a real danger that her clients will never receive their advance fees back."
Clients of Roni Deutch have little chance of receiving a substantial refund. This is a tough lesson for many to pay attention to
reviews of tax relief firms and to check reliability reports on each company with the Better Business Bureau.