American Tax Relief, owned by husband-and-wife Alexander Seung Hahn and Joo Hyun Park, used TV, radio and Internet advertising to lure consumers by falsely claiming that it could settle their delinquent federal and state taxes for far less than they owed:
Yet another shady business scheme taking advantage of people's desperate financial situations, offering a useless service and pocketing millions. Here's the FTC's press release on the scam: At FTC's Request, Court Halts Tax Relief Scam That Collected More Than $60 Million.
Among other promises, the company allegedly said it could remove tax liens and also stop wage garnishments, bank and tax levies, property seizures and "unbearable monthly payments."
The FTC sued husband-and-wife owners Alexander Seung Hahn and Joo Hyun Park, who allegedly ran the operation since at least 1999, charging upfront fees of up to $25,000. The couple could not be reached for comment, and calls to the company's business office went unanswered.
A Chicago judge last week issued a temporary restraining order against the company that froze the owners' assets and prevents it from accepting customers. A receiver was appointed to manage the company.
Park and Hahn, regulators said, ended up with more than $60 million from the scheme and lived lavishly in multimillion-dollar homes while driving seven luxury cars, including two Porsches and a Ferrari. But the company failed to pay its own taxes and had its California business license suspended last year.