Nevada — The Federal Trade Commission and the State of Nevada have obtained a court order halting operations of American Tax Service (ATS), a company accused of posing as government agencies, including the IRS, to defraud consumers seeking tax debt relief.
According to the FTC’s complaint, ATS and its operators, Terrance Selb and Tyler Bennett, allegedly promised to settle taxpayers’ debts for “pennies on the dollar” without assessing their financial situations, while pocketing tens of millions of dollars. The company also sent deceptive mailings that mimicked official government notices and used scare tactics to pressure consumers into paying for bogus services.
“People trying to pay down their tax debt shouldn’t have to worry about fraudsters pocketing their hard-earned money,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection.
Since at least 2019, ATS and its affiliates allegedly misled consumers through telemarketing calls and online ads, falsely claiming IRS investigations or “red flags” on accounts. The FTC contends the company’s practices violated the FTC Act, Gramm-Leach-Bliley Act, Telemarketing Sales Rule, and Impersonation Rule. Nevada has also alleged violations of state consumer protection laws.
The complaint was filed in the U.S. District Court for the District of Nevada against ATS and multiple affiliated entities. The U.S. Postal Inspection Service assisted in the case.
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