The FTC says American Tax Relief’s owners were living high on the hog at the expense of financially desperate people. One of the company’s owners was leasing a Rolls Royce, two Porsches, two Mercedes and a Bentley. The man also owned a Ferrari, which was seized in the raid last April. During the same raid, authorities seized money from owners’ bank accounts and placed liens on two residences, including a $3.4 million house. Despite these apparent setbacks, American Tax Relief continued to bombard would-be customers with television, radio and internet ads until an Illinois District Court ordered a temporary restraining order prohibiting deceptive claims and froze the company’s assets based on the complaint filed by the FTC.
American Tax Relief made its illegal money by charging up-front fees ranging from $3,200 to $25,000 to supposedly settle outstanding tax debt with the IRS. Most of American Tax Relief’s customers did not qualify for the programs that are actually offered by the IRS, which can be enrolled in free of charge by contacting the IRS directly. The company pocketed the money and did nothing for their customers.
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