Feds: LA Tax Relief Firm Scammed Thousands

LOS ANGELES (AP) — Federal officials say thousands of consumers drowning in tax debt fell victim to a nationwide scam by Beverly Hills-based American Tax Relief.

The Federal Trade Commission announced Wednesday it has filed a lawsuit in an attempt to get consumers’ money back. The FTC claims the company cheated consumers out of more than $60 million.

One victim of the scam is 43-year-old Tim Fullerton of Chicago. He says he called the company for help after hearing radio ads promising to settle delinquent taxes for pennies on the dollar. He ended up paying thousands of dollars upfront and waiting in vain for help.

A federal judge has temporarily halted the operation.

A telephone message seeking comment from the company’s attorney was not immediately returned.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


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