LOS ANGELES, March 9 (UPI) -- The Justice Department sued a California man Tuesday to shut down an alleged scheme to help customers hide from the Internal Revenue Service.
The suit named Anthony L. Hargis of Fountain Valley, Calif., and alleges he ran a fraudulent "warehouse banking" scheme that Hargis allegedly uses to help customers hide their income, assets, and identities from the IRS.
The civil injunction suit was filed in Santa Ana, Calif.
It alleges Hargis accepted funds from 253 customers, then placed the commingled funds in nine commercial bank accounts held in his name or the names of his associates in California and Texas.
Hargis then allegedly uses the commercial bank accounts to write checks to pay customers' bills. The complaint alleges that Hargis' customers, located primarily in California, owe an estimated $24 million in federal taxes.
The Justice Department also asked a judge to hold Hargis in civil contempt and jail him until he complies with a court order to turn over his customer list.
