Tax Lady Roni Deutch Charged with Contempt for Diverting Refunds

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 the Tax Lady 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.

Kenneth Long
Follow me

Kenneth Long

President at Debtors Unite
Kenneth Long is President of Debtors Unite, Inc. as well as President and Vice Chairman for Vision Credit Education, Inc. He served as a regional coordinator for the North Carolina Saves campaign. Long co-founded the Wake EITC Coalition along with Family Resource Center of Raleigh.

Long is a graduate of the University of North Carolina at Chapel Hill with a B.A. in Industrial Relations. He subsequently received his Certificate in Nonprofit Management from Duke University. His Certificate in Financial Planning was issued by Florida State University.

Long has achieved the Accredited Credit Counselor and Accredited Financial Counselor certifications through the Association for Financial Counseling, Planning and Education. Long originally achieved the Certified Credit Counselor designation through the National Institute for Financial Education.

In addition to years of nonprofit leadership, Long has been an innovator in the field of volunteer tax return preparation programs. He assists volunteer associations and nonprofit organizations who seek to integrate credit counseling and asset-building programs with free personal income tax preparation. His approach to using free credit reports as both an incentive and a screening tool for placement into asset-building programs has been shared with members of the National Community Tax Coalition, the EITC-Carolinas Initiative of MDC, Inc. and nonprofit groups across the Carolinas.

Long assists members of our armed forces in the Carolinas, Iowa, Rhode Island, Georgia and Germany with financial readiness. Please support our Soldiers, Marines, Airmen and Sailors!

Favorite quote:

"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."

Thomas Jefferson
Kenneth Long
Follow me

Latest posts by Kenneth Long (see all)