Liberty Tax Franchise Owner, Employees Allegedly Filed Fraudulent Returns, Pocketed Refund Money

Nine Liberty Tax franchisee employees were indicted this week on tax fraud charges.

The indictment was reached by a grand jury following an investigation led by Attorney General Brian Frosh. Lateisha Vanessa Kone, a Baltimore woman who owned Liberty Tax Service franchises, and eight of her employees face felony and misdemeanor charges related to tax fraud.

A number of Liberty Tax locations have been the target of orders issued by Comptroller Peter Franchot halting the processing of electronic returns. In a statement Friday, Franchot said the indictments send a "clear, serious message."

“The nine individuals charged today not only violated our laws, they also violated the trust placed in them by their clients," Franchot said. "The ringleader and her associates targeted the most vulnerable – the homeless, disabled, drug addicts, and poor people already gasping for stability. They lured victims by paying them $50, then submitted false tax returns to make a profit with disregard to the consequence to their clients."

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