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NY AG Spitzer says managers of tax preparation giant pushed IRA fraud

[JURIST] Less than two months after New York Attorney General Eliot Spitzer [official website] launched a $250 million lawsuit [complaint, PDF; JURIST report] against H&R Block [corporate website] for fraudulently coaxing its customers into a retirement account plan that lost them money, Spitzer has amended the complaint [PDF text; press release] claiming managers at the company ignored complaints from tax preparers about the misleading marketing of the Express IRA retirement plans [product backgrounder]. According to Spitzer internal paperwork also revealed that tax preparers were told to "sell more IRAs" or "there's the door."

H&R Block, which defended the retirement funds [press release] when the suit was launched in March, responded to the latest announcement by Spitzer by claiming he has "chosen to ignore the facts, rely on information taken out of context, and continue to attack our company" for reasons that seem "tailored to objectives other than the merits of this case." AP has more.

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Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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