This company allegedly sent letters to consumers falsely claiming that the consumer had been sued and that they could help the consumer resolve the suit with the least possible damage to the consumer, or represented that they could assist consumers who were having trouble with the IRS, when in fact they did not perform the services timely or accurately in violation of the Tennessee Consumer Protection Act. This was a multistate case.
The State of Tennessee obtained a judgment for civil contempt against J.K. Harris for violating an Agreed Final Judgment and Permanent Injunction in relation to their services promising to obtain reductions in back taxes owed to the I.R.S. Many consumers allegedly paid J.K. Harris for these services and never received assistance with reducing their tax debts, and J.K. Harris previously entered into a settlement with the State prohibiting this conduct. Under the terms of that agreement, the State obtained a judgment requiring J.K. Harris to pay $32,500 in restitution to consumers, $26,000 in remedial civil penalties, $6,800 in attorneys' fees and costs, and a continuing civil penalty in the amount of $650 per day for ongoing violations of the permanent injunction. The Final Judgment permitted additional consumers to come forward within six months of the Court's Order to be included for restitution. After the close of the six month window, J.K. Harris was ordered to pay an additional $157,000 to consumers in restitution.
On October 7, 2011, J.K. Harris filed a petition for bankruptcy relief under Chapter 11 of the Bankruptcy Code in South Carolina (Case no. 11-06254). On January 10, 2012, the case was converted to Chapter 7 bankruptcy and the assets of the company were liquidated. However, there were not sufficient funds to pay the state court ordered restitution, penalties or costs. The deadline to file a proof of claim was June 5, 2012.
This list includes only significant filings and is not intended to be a complete record of the matter.