Tax service founder denies fraud claims

Justice lawsuit alleges he allowed franchisees to commit fraud.

Fesum Ogbazion, the founder of Dayton-based Instant Tax Service, has denied most of the allegations against him in a U.S. Department of Justice lawsuit accusing him of knowingly allowing his franchisees to commit fraud.

The complaint alleges that franchisees in several states invented phony businesses, fabricated deductions, falsified filing statuses, claimed bogus dependents and disregarded rules for claiming the earned income tax credit to maximize refunds, and thereby, their fees for filing tax returns.

The government claims Ogbazion “knew of illegal activity within its franchises but took no meaningful steps to stop it.”

In response to the complaint filed in March in federal court in Dayton, Ogbazion’s attorney stated in a court filing earlier this week that “franchisees of Instant Tax Service were not under the control of defendants, and defendants are not responsible for any wrongful conduct, if any, committed by such franchisees.”

The government filed its lawsuit against Ogbazion — who allegedly owes the government nearly $1 million in back taxes of his own — and three of his companies: ITS Financial, the franchisor for Instant Tax; a holding company called TCA Financial LLC; and Tax Tree LLC.

The government is seeking a permanent injunction barring Ogbazion and his franchisees from continuing in the tax-preparation business.

A pretrial conference has been scheduled for June 11 before U.S. District Judge Timothy Black.

Contact this reporter at (937) 225-2437 or rtucker@DaytonDailyNews.com.

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