Mo' Money Taxes faces mo' problems after allegedly falsifying tax returns

Tuesday, December 4, 2012 at 5:57pm

Customers at Mo’ Money Taxes in East Nashville were enticed with promises of getting the most out of their tax returns. The company’s website even features an ad that ensures $1,800 in 30 seconds. But the company’s owners — and the individuals who used the service — could be in deep trouble.

The Internal Revenue Service cracked down on the company earlier this year, and federal prosecutors have asked a judge for an injunction against Mo’ Money employees Tony Fields and Trumekia Shaw to prevent them from operating this upcoming tax season.

The court filings also say that Mo’ Money customers “now face large income tax deficiencies and may be liable for sizeable penalties and interests.”

According to court documents, Fields and Shaw falsified customers’ tax returns and deprived the U.S. government of approximately $5 million in 2011 alone. The IRS was alerted to the operation after they found that 100 percent of the 2,349 filings from Mo’ Money in 2010 and 2011 involved tax refunds.

A federal complaint alleges that Fields and Shaw get an improper jump on their competition by opening Mo’ Money Taxes in Nashville in late December before the tax year ends.

The defendants allegedly use customers’ end-of-year pay stubs to prepare tax returns instead of the IRS-issued W-2 wage-statement forms, which is a violation of IRS rules. According to the U.S. Attorney's Office in Nashville, Fields and Shaw allegedly use the pay stubs to create fake W-2 Forms to include with the returns.

Prosecutors say that Fields and Shaw fabricated information ranging from phony dependents to exorbitant charitable donations that never happened. Mo’ Money also utilized fabrications to place low-income workers into a “sweet spot” that gave them the maximum Earned Income Tax Credit benefit.

The permanent injunction suit against Fields and Shaw also asks that they turn over a list of all their customers.

According to the Commercial Appeal, U.S. Rep. Steve Cohen, of Memphis, called for a federal investigation of Mo’ Money in February. Mo’ Money’s main office in Memphis was raided earlier this year.

Mo’ Money co-founder Markey Granberry was unavailable for comment on Tuesday afternoon.

9 Comments on this post:

By: courier37027 on 12/4/12 at 9:40

Big Daddy Kane said it best, "Pimpin' ain't easy."

By: Squiggles on 12/4/12 at 10:35

I had to create an account just to say.

The ones who get penalized by the IRS get everything they deserve. If you are stupid enough to use a tax return company called Mo' Money, then you are as dumb and as ghetto as they come.

Idiots these days, no wonder America is going to hell.

By: unmanagedtn on 12/5/12 at 1:30

Looks like he is at it again...

"While investigations continue, the CEO of Mo Money Taxes is opening up a new company. It's called Marquis Taxes and it will be the same type of business that Mo Money was, a tax preparation company.
A commercial was just released by MoneyCo. USA for the new company. It's a theatrical video where one of the CEOs, Markey Granberry, and his colleagues are hounded by reporters.
In the commercial, an actress asks Granberry, "What are your plans for this year's tax season?"
Granberry responds, "My plans are to offer free tax preparation and electronic filing to my faithful and loyal clients."
Another actress asks, "What about last year?"
Granberry responds in the commercial, "You know it never was reported that we were innocent, right?""

By: treehugger7 on 12/5/12 at 8:21

As a former tax preparer, a professional ,legitimate tax preparer, I am happy to see this. I spent a lot of time fixing returns from companies like this one. Ever since the Earned Income Tax Credit was begun, fraud became rampant. The goal of the EITC was good, but due to companies like this one, it has a bad name. I have seen the benefit of it, but companies need much more oversight than they currently have. My opinion is that they should be tested each year and meet all legal requirements. I'd love to see this busted FAST!!

By: frodo on 12/5/12 at 9:38

The real travesty in this nation is not that the top 1 or 2% aren't paying their fair share. It is that the bottom 50% are not. And I'm sure that is who these predators prey upon...those who are eager to dodge taxes and don't care how it happens. Okay, I know, some of these people are clueless victims. But let's face it. If this were a Wall Street accountant scamming both the IRS and the top 1%, we would have no sympathy for the top 1%. We would want them put in jail until they pay their taxes. But in Obama's Amerika, these are "poor victims" of entrepreneurs run amok, demonstrating once again that we need more government regulation. Someone will probably propose that their taxes be forgiven. Or maybe I got up on the wrong side of the bed this morning.

By: Jughead on 12/5/12 at 1:29

The Earned Income Credit is nothing but a scam for welfare lovers to get beer and dope money each year. These people "earned" nothing, yet Santa Claus says they need a few thousand of my dollars each year.

I hate the US--we used to be about hard work. Now, it is oxycontin and Obama.

By: Jughead on 12/5/12 at 2:05

1/2 of the poeple in the US don't pay a PENNY in Federal tax, yet demand entitlements and elect politicians who will feed them.

Kinda sounds like 1776, eh? Time for a split?

By: govskeptic on 12/8/12 at 9:09

What was the Justice Dept thinking in filing this as a Civil complaint versus a full
fledged Criminal Charge. It's certainly criminal if I cheat on my self prepared tax
forms. Why do the Preparers that are the ones keeping the ill gotten dollars not
charged criminally. Earned income tax credit is taken by thousands of immigrants
(legal and illegal) that can list 8 children on their forms and not even show they
live in this country or that they are living at all. What a system we pay for?

By: Badbob on 12/8/12 at 10:08

@govskeptic - I don't think you will be disappointed after the criminal case is resolved. :)

@jughead - we'd all be happier, if you moved to some other country you think you'd like better.

@fordo - yeah, that stupid bottom 50% of the country. They earn 10.5% of the total income in the country how dare they only pay 2% of the total taxes, placing a burden on the other 50% that makes 90% of the income.