Thanks to a tipster (send in your tips here), this story was brought to my attention.
It looks like the tax preparer, Leval Moore of Alpha Financial in New York, got hooked up as an affiliate or representative of a debt settlement company that did not deliver.
Thankfully the story has a belated happy ending, sort of. While the first refund check, issued by Leval, bounced, after help from a local television station, the debtor got a second refund check.
The bad news is the consumer still has all his debt. What do you think the chances are he’s going to use his $1,500 refund for advanced debt settlement fees for bankruptcy?
I called Leval for a comment on the story but was unable to reach him by the time this was published.