U.S. District Court Orders Disgorgement for Violating Tax Preparer Injunction

The U.S. District Court ordered a tax preparer to disgorge $1,977,675 in gross revenues and pay $22,165.42 in investigative costs after finding he operated a tax preparation business in violation of a prior 2007 injunction prohibiting him from acting as an income-tax preparer. The court had previously held the defendant in contempt for violating the injunction. The court held that disgorgement of gross revenues was appropriate because the entire post-injunction business was wrongful. Since the defendant was expressly barred from operating as a tax preparer, every dollar earned from tax preparation services was deemed unlawful. The court rejected the defendant’s ...