KOMPA! MAGAZINE Forum Index KOMPA! MAGAZINE
The site for Haitian Music News as it happens, debates & more.


H&R BLOCK CHARGED WITH FRAUD...READ THE ARTICLE BELOW!!!

 
This forum is locked: you cannot post, reply to, or edit topics.   This topic is locked: you cannot edit posts or make replies.    KOMPA! MAGAZINE Forum Index -> Let's Talk!
View previous topic :: View next topic  
Gromosso



Joined: 12 Mar 2006
Posts: 10479

 PostPosted: Wed Mar 15, 2006 11:48 am    Post subject: H&R BLOCK CHARGED WITH FRAUD...READ THE ARTICLE BELOW!!! Reply with quote Back to top

http://www.msnbc.msn.com/id/11839807/

New York charges H&R Block with fraud
Attorney General: Tax firm steered clients into loss-making IRAs

Updated: 11:46 a.m. ET March 15, 2006
NEW YORK - New York state filed a $250 million fraud suit Wednesday against H&R Block Inc., the nation’s largest tax preparing service, charging the company fraudulently steered customers into a losing retirement account plan.

The news unnerved investors, who sent H&R Block shares down $1.30, or almost 6 percent, to $20.70 in midday trading on the New York Stock Exchange.

The lawsuit, filed in Manhattan’s state Supreme Court, says Block advised clients to buy an “unsuitable, fraudulently marketed, poorly performing, fee-ridden ’retirement vehicle’ called the Express IRA,” an account that actually shrinks over time.

The court papers, filed by Attorney General Eliot Spitzer, say the money in the retirement account decreases because the only investment option offered is a money market account with an interest rate so low that it does not cover the fees — “fees that H&R Block fails to adequately disclose.”

The attorney general’s lawsuit asks that the company be required to stop engaging in any fraudulent practices, that the company be forced to disgorge profits and pay damages and restitution caused by their scheme, and that it pay civil penalties of no less than $250 million.

H&R Block said in a statement that it will “fight vigorously to defend the Express IRA product and ensure it remains available to our many clients who rely on it as a helpful savings option.”

“Make no mistake — we believe in the Express IRA product and are proud of the opportunities it presents for our clients,” said Chairman and CEO Mark A. Ernst.

Spitzer said that H&R Block opened more than half a million Express IRA accounts in the last four years. He said 85 percent of customers who opened the accounts paid H&R Block more in fees than they earned in interest. More than 150,000 customers closed their accounts, incurring additional undisclosed fees and almost $6 million in tax penalties, Spitzer said.

The investigation by the attorney general’s office was launched in 2005 after it received information from an H&R Block tax preparer.

© 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
_________________
Bat Chyen An Tan'n Met Li

 
View user's profile Send private message
CatDog



Joined: 12 Mar 2006
Posts: 3875
Location: Massachusetts

 PostPosted: Thu Mar 16, 2006 11:06 am    Post subject: Reply with quote Back to top

To think that is where I have my taxes filed every year and actually have a retirement account with them. I need to go and make some phone calls right now.
 
View user's profile Send private message
Display posts from previous:   
This forum is locked: you cannot post, reply to, or edit topics.   This topic is locked: you cannot edit posts or make replies.    KOMPA! MAGAZINE Forum Index -> Let's Talk! All times are GMT - 5 Hours
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
Geo Visitors Map