'Tax Lady' Roni Deutch May Earn Jail Time

Updated
Roni Deutch
Roni Deutch

Nearly eight months after the state of California hit her with a $34 million lawsuit alleging that she defrauded thousands of consumers who sought her tax advice, Roni Deutch, the so-called "Tax Lady," has landed back in court. This time, according to the Sacramento Bee, Deutch's assets have been frozen; Deutch also faces potential jail time on charges of contempt of court.

In August 2010, the sitting California Attorney General (now Governor) Jerry Brown filed suit against Deutch, accusing her of airing misleading advertisements about her services and engaging in heavy-handed sales techniques to pressure potential clients. Included in the allegations were charges that Deutch's firm not only did not provide the services promised to clients but that she refused to refund fees.

The Attorney General revealed that, as of April 5, 2011, Deutch had allegedly admitted that her firm had outstanding refund requests that had been on the books for more than 60 days, and which totaled more than $435,000.

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