NEW YORK, April 3 - Federal investigators have sued five companies that operate Jackson Hewitt Tax Services Inc. franchises, accusing them of defrauding the United States Treasury out of more than $70 million.

The Department of Justice said the companies allegedly operate more than 125 Jackson Hewitt retail tax preparation stores in the Atlanta, Chicago, Detroit and Raleigh-Durham, N.C., areas. The lawsuits also target 24 people who manage or work at the franchises, the department said.

“Preparing federal income tax returns based on falsehoods and fabrications is a serious violation of the law,” Assistant Attorney General Eileen O’Connor said in a statement.

Parsippany, N.J.-based Jackson Hewitt is the second-largest U.S. tax preparer. It did not immediately return a call seeking comment. The company’s shares fell $2.12, or 6.5 percent, to $30.28 in afternoon trading.

Click here for more information about the Jackson Hewitt franchise opportunity

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Further Reading
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