In a case that has continued across a change in Attorneys General, the current California Attorney General Kamala Harris has asked a California court to put Roni Deutch in jail for shredding millions of pages of documents that would probably have come in very handy in the lawsuit by California against the Tax Lady.
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,” Attorney General Harris said. “By defrauding these victims, and then pleading poverty, she created a real danger that her clients will never receive their advance fees back.”
“Despite this order,” the Attorney General said in today’s action, “Deutch has been routinely shredding documents on an almost a weekly basis.” The Attorney General estimates that to date Deutch has shredded some 1,643,000 to 2,708,600 pages of documents, approximately 27,000 pounds of paper. The estimate was based on the shredding bins of American Mobile Shredding which hold about 100 pounds of paper. “Deutch shredded 213 bins of paper from Deutch’s law firm…” – Source
Deutch’s shredding campaign has permanently deprived the Attorney General of evidence needed to fully prosecute the action against her.
In addition to shredding documents, the Attorney General also charged that Deutch violated a November 17 preliminary injunction by failing to issue some $435,000 in refunds to her clients within 60 days. Instead she “decided to disperse funds to friends, family and other creditors. By draining her estate and that of the law firm, Deutch has placed her clients at serious risk of never receiving their refunds.”
Deutch opted to transfer hundreds of thousands of dollars in equity from the sale of her home to InterMedia. “On December 24, 2010, about one month after the Court issued the Preliminary Injunction, Deutch gave a deed of trust on her home to InterMedia for $1,123,709 as security for debts the law firm had accrued as part of its advertising campaign.” – Source
She also personally withdrew $335,000 from the law firm’s accounts and her personal accounts, including $66,000 in cash, at just one bank. In addition, since the preliminary injunction order was issued, Deutch made more than $21,000 in unnecessary expenditures, including gifts to family and friends, and a payment to a NASCAR racing team.
As part of the recent California court filing the State has asked the court to appoint a receiver to take over the business. “The receiver’s duties would include conducting an accounting of Deutch’s assets and managing the firm’s business.” – Source