The 1-800Accountant lawsuit most people are asking about is the 2013 federal enforcement action brought by the Federal Trade Commission and the attorneys general of New York and Florida against “The Tax Club Enterprise,” a group of twelve corporate entities that included 1800Accountant, LLC. The case alleged a deceptive telemarketing operation that collected more than $200 million from consumers. It settled in 2014 with a $140 million suspended judgment, permanent bans on outbound telemarketing and business-coaching sales for the named defendants, and $18 million in refunds later mailed to more than 20,000 consumers. The company operating today under the 1-800Accountant name continues to draw hundreds of consumer complaints, and its current customer contract limits refunds and forces disputes into arbitration.1FTC. FTC, New York, Florida Attorneys General Charge Tax Club’s Telemarketing Scheme Bilking Consumers
What the FTC Case Alleged
On January 9, 2013, the FTC and the two state attorneys general filed a complaint in the U.S. District Court for the Southern District of New York. 1800Accountant, LLC was named alongside The Tax Club, Inc., Manhattan Professional Group, Inc., and other entities. Four individuals were named: Edward B. Johnson (CEO and owner of The Tax Club), Michael M. Savage (president of 1800Accountant), Gary J. Milkwick (vice president and owner of 1800Accountant), and Brendon A. Pack (a sales manager).1FTC. FTC, New York, Florida Attorneys General Charge Tax Club’s Telemarketing Scheme Bilking Consumers
The plaintiffs treated the twelve companies as a single “common enterprise” that shared office space in the Empire State Building, employees, customer databases, and bank accounts. According to the complaint, the operation had taken in more than $200 million from consumers since 2008.2FTC. FTC v. The Tax Club, Inc. Et Al, Complaint for Permanent Injunction
The alleged tactics targeted people who had recently bought other business startup products and were trying to launch home-based businesses. Many were elderly or disabled. The complaint described:
- Telemarketers claiming to call on behalf of companies the consumer had already done business with, when the enterprise had simply bought the contact information as a lead.
- Promises that services costing several thousand dollars would “pay for themselves” and generate thousands of dollars in monthly income.
- Follow-up “fulfillment calls” that were actually upsell pitches.
- Generic, boilerplate work delivered in place of the personalized expert help consumers were promised. As of August 2011, the enterprise employed only six CPAs and eleven Enrolled Agents across hundreds of staff.
- Cancellation windows of three to fifteen days, followed by a “secondary review” process that consumers said effectively blocked refunds.
Chargebacks were so frequent that the enterprise maintained more than fifty merchant accounts across multiple banks and cycled through business names to keep processing payments after banks such as Discover and Bank of America Merchant Services shut accounts down.3FTC. FTC v. The Tax Club, Inc. Et Al, First Amended Complaint
How the Case Was Resolved
The court entered stipulated final judgments on June 24, 2014. The order covering Michael Savage, Brendon Pack, and the corporate entities imposed a $140 million monetary judgment as equitable relief. Most of that figure was suspended on the condition that the defendants had told the truth about their finances; any material misrepresentation would make the full amount immediately due.4FTC. Stipulated Final Judgment and Order – Tax Club, Savage Et Al A separate stipulated judgment was entered against Edward B. Johnson on similar terms.5FTC. The Tax Club, Inc., Et Al – Cases and Proceedings
The settlement permanently banned the defendants from advertising or selling business coaching services, credit development services, or work-at-home opportunities. It also barred them from making outbound telemarketing calls, with narrow exceptions for existing customers who gave written consent. Specified bank accounts and real estate were turned over to a court-appointed liquidator.4FTC. Stipulated Final Judgment and Order – Tax Club, Savage Et Al
In December 2016, the FTC mailed $18 million in refund checks to more than 20,000 consumers, averaging about $914 per person. The distribution was handled by Analytics Consulting LLC.6FTC. FTC Returns $18 Million to Victims of Home-Based Business Coaching Scheme
The FTC also went after the payment processor. Capital Payments, LLC (later Bluefin Payment Systems) was charged with assisting and facilitating deceptive telemarketing by continuing to process payments despite high chargeback rates and warnings from financial institutions. It settled in February 2016 under a $2.6 million judgment, with $750,000 required immediately and the rest suspended based on financial condition.7FTC. Payment Processor Involved in Tax Club Telemarketing Scheme Settles FTC Charges
A Separate Employment Lawsuit
A civil rights employment case, Lopez-Blasser v. 1800Accountant, LLC, was filed October 23, 2020, in the U.S. District Court for the Middle District of Florida. The specific type of discrimination alleged is not publicly detailed. The parties filed a stipulation of dismissal on August 11, 2021, and the case was terminated the next day, consistent with a private settlement.8CourtListener. Lopez-Blasser v. 1800Accountant, LLC
Complaints Against the Company Today
The business currently trading as 1-800Accountant identifies its operating entity as Accounting Fulfillment Services, LLC, at 260 Madison Avenue, Suite 1001, in New York City, and appears to be a separate entity from the original Tax Club enterprise.91800Accountant. Privacy Policy
As of mid-2026, the Better Business Bureau has logged 562 complaints against 1-800Accountant over the preceding three years, 217 of them closed in the most recent twelve months. Of the total, 103 were marked resolved; the remaining 459 were classified as “answered,” meaning the company responded but the consumer did not necessarily accept the outcome.10BBB. 1-800Accountant Complaints
Recurring themes in those complaints include unfiled or late tax returns, missed deadlines, extensions filed without the client’s consent, frequent turnover among assigned advisors, difficulty reaching anyone by phone, and missed appointments. Some recent complaints allege that sales staff used aggressive tactics, including advising clients to restructure their businesses in ways the customers later said were not appropriate. Engagement fees cited in the complaints typically run from around $2,900 to $3,400, and customers often report being unable to obtain refunds once the company’s 30-day refund window closed. At least one consumer alleged a data privacy breach after receiving another client’s S-Corporation paperwork.10BBB. 1-800Accountant Complaints
What the Current Contract Limits
The company’s current terms of service shape what a dissatisfied customer can actually do. A mandatory arbitration clause sends all disputes to individual arbitration administered by the American Arbitration Association, and users waive their right to a jury trial or class action participation. Monthly and quarterly fees are non-refundable and are not prorated for partial periods. Annual and one-time fees are up to 90% refundable only within 30 days of purchase; after that window, they are non-refundable. A service that has already been performed, such as a tax filing or entity formation, cannot be canceled even if the client decides not to continue. Liability, if it is established at all, is capped at the amount the customer paid for services.111800Accountant. Terms of Service
If you are considering signing up, those two numbers matter most: the 30-day refund window on annual and one-time fees, and the arbitration clause that closes the courthouse door on anything beyond it.