Penalty Amount
$8,000,000
The FTC and State of Nevada settled charges against the operators of American Tax Service for impersonating federal and state government tax authorities and making false promises of tax debt relief. The defendants will surrender over $8 million in cash and assets and are banned from debt relief services, tax preparation, telemarketing, and impersonation.
The defendants must surrender over $8 million in cash and additional assets to be used for consumer refunds. They are permanently banned from debt relief services, tax preparation services, telemarketing, and impersonation of individuals, governments, or businesses. A $77.7 million judgment is suspended based on inability to pay.
In-house legal teams should review vendor agreements with tax relief or debt settlement companies to ensure compliance with FTC rules on telemarketing, deceptive advertising, and impersonation. Key clauses to examine include representations and warranties regarding compliance with the FTC Act and Telemarketing Sales Rule, indemnification for deceptive practices, and termination rights for regulatory violations. Additionally, contracts should prohibit vendors from impersonating government entities and require clear disclosures about services.
Entity
American Tax Service (ATS)
Industry
OtherOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/06/ftc-nevada-will-require-tax-relief-scammers-pay-cash-turn-over-assets-worth-nearly-10-million-settle
2523026atstro
https://www.ftc.gov/system/files/ftc_gov/pdf/2523026atstro.pdf
ATS StipulatedOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/ATS-StipulatedOrder.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"operators of American Tax Service (ATS)"
"will surrender over $8 million in cash"
"imposes a judgment in the amount of $77.7 million"
"impersonating federal and state government tax authorities and promising tax debt relief"
"Federal Trade Commission and State of Nevada"
The FTC filed a complaint alleging that GovAssist LLC, Entry LLC, and Scott Zuckerman used deceptive paid search ads, misleading service and pricing claims, and fake reviews to deceive consumers seeking passport services. The complaint alleges violations of the FTC Act, the Impersonation Rule, and the Gramm-Leach-Bliley Act; the case will be decided by the court, and no penalty or remedy is reported as imposed.
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The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
$106.8M
A federal court entered a $106.8 million default judgment against corporate defendants in an alleged debt-relief scheme that impersonated banks and government entities and targeted seniors and veterans. The judgment permanently bans the defendants from the debt-relief industry and imposes additional prohibitions, including on impersonation, telemarketing, and misrepresentations.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.