United States of America v. Boursiquot et al

Filing 90

ORDER ON REPORT AND RECOMMENDATIONS and Granting 52 Motion for Sanctions filed by United States of America ; PERMANENT INJUNCTION; adopting Report and Recommendations re 83 Report and Recommendations. Certificate of Appealability: No Ruling. The Clerk of Court is Directed to enter Final Judgment against Defendants B&C Royalty Multi-Services, Inc. and RBS Flamboyant Solutions, Inc. as to counts 1, 2 and 3 of the Complaint. Count 4 remains pending. Motions terminated: 83 REPORT AND RECOMMENDATIONS re 52 Second MOTION for Sanctions Under Rule 37 filed by United States of America. Signed by Judge Robert N. Scola, Jr on 5/1/2018. (lk)

United States District Court
for the
Southern District of Florida
United States of America, Plaintiff,
v.
Jean-Philippe Boursiquot and
others, Defendants.

)
)
)
Civil Action No. 17-60550-Civ-Scola
)
)

Order on Report and Recommendation and Permanent Injunction
This matter was referred to United States Magistrate Judge Alicia M.
Otazo-Reyes for a report and recommendation (ECF No. 57) on the
Government’s Second Motion for Rule 37 Sanctions (ECF No. 52). On
April 4, 2018, Judge Otazo-Reyes issued a Report, recommending that the
Court enter a permanent injunction against Defendants B&C Royalty MultiServices, Inc., and RBS Flamboyant Solutions, Inc. (the “Corporate
Defendants”). (Magistrate’s Report, ECF No. 83.) No objections have been filed
and the time to object has passed. Having considered Judge Otazo-Reyes’s
Report, the record, and the relevant legal authorities, the Court affirms and
adopts Judge Otazo-Reyes’s report and recommendation (ECF No. 83) and
grants the Government’s motion (ECF No. 52). Accordingly, the Court finds as
follows:
1. The United States filed a Complaint (ECF No. 1) for a permanent
injunction under 26 U.S.C. §§ 7402(a), 7407, and 7408, and
disgorgement under 28 U.S.C. § 7402(a) against Jean-Philippe
Boursiquot, B&C Royalty Multi-Services, Inc., Roberton Boursiquot, and
RBS Flamboyant Solutions, Inc.
2. For the purposes of this permanent injunction, this Court has
jurisdiction over this action pursuant to 28 U.S.C. §§ 1340 and 1345,
and 26 U.S.C. § 7402(a).
3. The United States filed its Second Motion for Sanctions (ECF No. 52) on
February 1, 2018, which sought entry of default judgment against JeanPhilippe Boursiquot, B&C Royalty Multi-Services, Inc., Roberton
Boursiquot, and RBS Flamboyant Solutions, Inc., as to Counts I
through III of the Complaint.
4. On April 2, 2018, Magistrate Judge Alicia M. Otazo-Reyes granted the
United States’s Second Motion for Sanctions in part as to the Corporate
Defendants. (Order, ECF No. 79.)

5. For purposes of the permanent injunction against the Corporate
Defendants, the Court holds that the allegations in the Complaint are
deemed admitted.
6. The Corporate Defendants further understand and agree that:
a. The permanent injunction will be entered under Federal Rule
of Civil Procedure 65.
b. They waive any right they might have to appeal the permanent
injunction;
c. If they violate the permanent injunction, they may be subject to
civil and criminal sanctions for contempt of court; and,
d. In addition to the specific directives in the permanent
injunction, the Corporate Defendants have an obligation to
preserve all pertinent documents in their possession, including
tax returns, informational returns, correspondence, working
papers, or any other documents connected to their tax
preparation activities, whether stored electronically or on
paper, as required by the Internal Revenue Code.
It is hereby ordered pursuant to 26 U.S.C. §§ 7402(a), 7407, and 7408
that the Corporate Defendants, doing business as or through any entity, and
anyone acting in concert or participation with them are permanently enjoined
from, directly or indirectly:
1. Preparing, filing, directing, or assisting the preparation or filing of federal
tax returns, amended returns, or other related documents or forms,
including any electronically submitted tax returns or tax-related
documents, for any person or entity other than themselves;
2. Preparing or assisting in the preparation of federal tax returns, amended
returns, or other related documents or forms that they know will result
in the understatement of federal tax liabilities or the overstatement of
federal tax refunds;
3. Receiving fees or remuneration from any tax return preparation
business;
4. Owning, operating, controlling, licensing, or consulting with any tax
return preparation business;
5. Engaging in any other activity subject to penalty under 26 U.S.C.
§§ 6694, 6695, and 6701; and,
6. Engaging in any fraudulent or deceptive conduct that substantially
interferes with the proper administration and enforcement of the Internal
Revenue Code.

It is further ordered that any Preparer Tax Identification Numbers
(PTIN) and/or Electronic Filing Identification Numbers (EFIN) held by, assigned
to, or used by the Corporate Defendants may be immediately revoked without
any further proceedings.
It is further ordered that, within 30 days of entry of this permanent
injunction, the Corporate Defendants shall:
1. Contact, by regular mail or email, all persons for whom they have
prepared a federal tax return since January 1, 2013, to inform them of
the permanent injunction entered against the Corporate Defendants and
provide those persons with a copy thereof (but including no other
documents or enclosures unless agreed to by counsel for the United
States or approved by the Court), and file with the Court a sworn
certificate stating that they have complied with this requirement; and
2. Produce to counsel for the United States a list of all persons for whom
they prepared federal income tax returns or claims for refund since
January 1, 2013, including names, social security numbers, addresses,
email addresses, telephone numbers, and all relevant tax periods.
It is further ordered that the United States is allowed full postjudgment discovery to monitor compliance with this permanent injunction.
It is further ordered that the Court will retain jurisdiction over Counts
I, II, and III with respect to the Corporate Defendants for the purpose of
implementing and enforcing the permanent injunction and any additional
orders necessary and appropriate to the public interest, and retain jurisdiction
over Count IV with respect to the Corporate Defendants for all matters.
Accordingly, the Clerk of the Court is directed to enter final judgment
against Defendants B&C Royalty Multi-Services, Inc., and RBS Flamboyant
Solutions, Inc. as to Counts I, II, and III of the Complaint. Count IV remains
pending.
Done and ordered in chambers, at Miami, Florida, on May 1, 2018.

_____________________________
Robert N. Scola, Jr.
United States District Judge