Free Republic

TaxMasters Inc., a Texas-based tax advisory firm perhaps best known for its ubiquitous advertisements on cable television, has been ordered to pay more than $195 million in penalties for defrauding its clients. Patrick Cox, the firm’s heavyset, bearded founder and chief executive officer, has to pay $46 million of the judgment handed down last week by a Texas jury. Cox appeared in many of TaxMasters’ commercials. TaxMasters was found to have committed more than 110,000 violations of Texas’ Deceptive Trade Practices Act, according to a statement released by Texas Attorney General Greg Abbott. The verdict “marks a significant victory for...

Texas jury slaps $195 million penalty on TaxMasters, CEO CoxReuters – Fri, Mar 30, 2012 (Reuters) - A Texas jury voted to slap $195 million in civil penalties on Friday against the tax advisory firm TaxMasters and its CEO Patrick Cox, who were accused by the state of defrauding consumers. Houston-based TaxMasters became a household name due to commercials featuring Cox, who promised consumers his firm could walk them through audits, settle tax disputes and recover property seized by the IRS. It gained more dubious recognition in 2010, when Texas Attorney General Greg Abbott filed a lawsuit saying some of...