Attorney General Fles Suit Against H&R Block
New York Attorney General Eliot Spitzer has filed suit against H&R Block Inc. for alleged fraudulent marketing of individual retirement accounts (IRAs). It is alleged that over the last four years, H&R Block has opened over 500,000 “Express IRA” accounts for tax clients, but 85% of those customers paid more in fees than they earned in interest.
Spitzer claims that management knew that the Express IRA customers were losing money. The suit includes charges that H&R Block didn’t disclose the fees associated with the accounts or that clients would incur tax penalties if they closed the IRAs early.
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