H&R Block Sued By The State For Alleged Fraud
By: NY1 News
NY1: H&R Block Sued By The State For Alleged Fraud
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H&R block is being sued by the state, after Attorney General Eliot Spitzer charges that the nation's largest tax preparation business steered clients towards misleading retirement plans.
Spitzer says some half a million clients were lured into the company's Express Individual Retirement Accounts, and that 85 percent of those customers lost money on the retirement plan because H&R Block did not tell its clients about hidden fees.
In announcing the $250 million lawsuit Wednesday, Spitzer said he was tipped off to the alleged misconduct by whistle blowers in the company last year.
H&R Block says it stands behind the Express IRA's, and will fight the allegations.
The suit comes amid troubled times for the accounting firm. Earlier this week, H&R Block said that it understated its state taxes by $10 million in 2004.