Tax lady to shutter business, give up law license

8:44 PM, May 12, 2011   |    comments
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Roni Deutch

NORTH HIGHLANDS, CA- Tax lady Roni Deutch said she will shut down her businesses and surrender her license to practice law.

Deutch faces a lawsuit by the California State Attorney General's office accusing her of bilking clients out of $34 million.

Deutch apologized to employees at a press conference Thursday afternoon at her North Highlands headquarters. 

The owner and founder of Roni Deutch Tax Service offices said her firm is $10 million in debt and that she has a personal debt of $5 million.

Deutch accused the Attorney General's office of destroying her business.

"As a result of the attorney general's lawsuit my business decreased by over 90 percent," Deutch said.

A Sacramento superior court froze her assets last month and her company that once took in $25 million a year is now in receivership.

Attorney General Kamala Harris has called Deutch a "predator for profit" with the lawsuit claiming less than 10 percent of her clients have their federal tax debts settled successfully.

Harris accused Deutch of shredding millions of pages of documents, failing to pay over $400,000 in refunds to her customers and of violating the court's orders, "almost before they came off the printer."

At her press conference, Deutch said she had never been disciplined once by the California State Bar Association.

"Did you know that the State Bar Association has reviewed over 300 of my clients files and has never one time in 20-years have they disciplined me?" Deutch said.

Deutch also questioned why the Attorney General's office allowed her to accept new clients if they believed she was, "a predator."

Deutch said she does not have enough money left to continue her legal defense.

Her attorney, James Banks, has asked to be taken off the case because he said he hasn't been paid.

Deutch is facing a hearing on contempt of court allegations that is set for July 22.

Deutch could face heavy fines and time in jail for violating the court's orders.

News10/KXTV

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