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JUSTICE DEPARTMENT GOES AFTER 'AUDIT DEFENSE NETWORK.'

June 15, 2004

The Justice Department announced last that it has won an injunction against the "National Audit Defense Network." The Justice Department says that the NADN is a scam that has cost the government $324 million in tax revenues so far:

   According to court papers, NADN charges 
   customers $2,495 to make sham website 
   modifications, but also adds a sham $7,980 
   promissory note as part of the ostensible 
   purchase price to artificially raise the total 
   cost to $10,475. NADN allegedly tells 
   prospective purchasers that they can use 
   that inflated cost to claim a $5,000 ADA 
   income-tax credit and a $5,475 business 
   tax deduction, thereby reducing their taxes 
   by more than double the $2,495 they paid 
   for the “modifications.” 

Will the Justice Department be a match for the NADN "Technical Dream Team"? The dream will become a nightmare for the NADN's "estimated 100,000 customers" when the IRS gets the NADN customer list.

(Note: erroneous link and date on original post corrected.)

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