The U.S. District Court for the Southern District of Mississippi entered permanent injunctions against Thomas Walt Dallas, Jason Todd Mardis and Capital Preservation Services LLC to bar them from making statements about tax benefits for compensation, among other relief.
The defendants consented to the entry of the injunctions.
According to the complaint, Dallas, Mardis, and Capital Preservation Services marketed a tax scheme at numerous professional conferences and media appearances targeting medical professionals and small business owners.
They allegedly falsely claimed that customers following their “Tax Plans” could claim multiple deductions to which they were not actually entitled.
This included false claims that customers’ businesses could take deductions for paying large, unnecessary “marketing fees” to newly-created, sham marketing companies; the marketing companies could employ family members, including minor children, and take deductions for family meals, vehicle expenses and tuition, among other items; and customers could “rent” their homes to their businesses on a short-term basis at exorbitant rates and avoid paying taxes on the rental income.
The complaint further alleges that Dallas, Mardis and Capital Preservation Services knew or had reason to know that their statements to customers about the supposed tax benefits of the tax plans were false.
The alleged harm from the scheme could be as much as $130 million in lost tax revenue since 2014.
