Cohen Statement on Court Order Against Mo’ Money

[MEMPHIS, TN] – After a federal court permanently barred the owners and a former manager of Mo’ Money Taxes from preparing tax returns for others and owning or operating a tax return preparation business, Congressman Steve Cohen (TN-09) issued the following statement:

“This court order against Mo’ Money sends a striking message that businesses cannot take advantage of Memphians or victimize America through tax fraud,” said Congressman Cohen. “Those perpetrating tax preparation scams that prey on the poor and the middle class should be punished as severely as possible under the law, and I’m glad the Department of Justice responded to the concerns of my constituents and took action against these individuals. This is good news for consumers and taxpayers in Memphis.”

Mo’ Money had been the subject of a U.S. Department of Justice Tax Division lawsuit seeking to shut the business down. The suit also accused its owners of creating and maintaining a business environment that encourages the preparation of fraudulent federal income tax returns. The civil injunction order announced today against Mo’ Money owners Markey Granberry and Derrick Robinson, as well as former manager Eumora Reese, was signed by Judge S. Thomas Anderson of the U.S. District Court for the Western District of Tennessee.

In March 2012, Congressman Cohen met with Congressman Robert “Bobby” Scott (VA-03) and a senior Justice Department official to follow up on their February 7, 2012 letter to Attorney General Eric H. Holder, Jr., requesting his office’s assistance in addressing the problems their constituents were having with the Mo’ Money tax preparation firm. They also called on the House Judiciary Committee to hold a hearing on Mo’ Money, which shed light on the company’s business practices when the Committee met on June 28, 2012.

In January 2012, both members’ Congressional offices began receiving complaints from constituents regarding Mo’ Money. In addition to other problems, the complaints alleged:

• bounced checks issued by Mo’ Money for tax refunds;
• failure by Mo’ Money to provide refunds the IRS had sent it for constituents who had filed their taxes through the company; and
• excessive fees deducted by the company from refunds.