United States of America v. Ahmed et al

Filing 21

STIPULATION AND ORDER FOR ENTRY OF CONSENT JUDGMENT AND PERMANENT INJUNCTION ORDER. Signed by District Judge Gershwin A. Drain. (TMcg)

IN THE UNITED STATES DISTRICT COURT FOR THE
EASTERN DISTRICT OF MICHIGAN

UNITED STATES OF AMERICA,

)
)
Plaintiff,
)
)
v.
)
)
SYED N. AHMED; NASAH INC.;
)
MILLINIUM FINANCIAL SOLUTIONS,
)
INC.; MARS, INC.-HAMTRAMCK; MAHAD )
INC.; all d/b/a LIBERTY TAX SERVICE,
)
)
Defendant.
)
)

Case No. 2:15-cv-11461-GAD-EAS

STIPULATION FOR ENTRY OF CONSENT JUDGMENT AND
PERMANENT INJUNCTION ORDER

Plaintiff United States of America, through its undersigned counsel, and
defendants Syed N. Ahmed, Nasah, Inc., Millinium Financial Solutions, Inc., Mars,
Inc.-Hamtramck, and Mahad, Inc., all doing business as Liberty Tax Service,
through undersigned counsel, stipulate and agree as follows:
1. On April 22, 2015, the United States filed a Complaint for Permanent
Injunction and Other Relief under 26 U.S.C. §§ 7402, 7407, and 7408 (the
Internal Revenue Code (“I.R.C.”)) against defendants. (See Compl. ECF No. 1.)
On July 27, 2015, Defendants filed an Answer and Affirmative Defenses
denying the allegations in the Complaint. (See Ans. Compl. ECF No. 16).

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2. Without admitting liability, Defendants nevertheless wish to resolve this matter
and they hereby consent to entry of judgment in the above-captioned case and
entry of the following Permanent Injunction Order against them.
3. This Court has subject-matter and personal jurisdiction over the defendants.

4. Entry of this Consent Judgment and Permanent Injunction Order will resolve
only this civil injunction action, and neither precludes the government from
pursuing any other current or future civil or criminal matters or proceedings,
nor precludes defendants from contesting liability in any matter or proceeding.
5. The parties waive the entry of findings of fact and conclusions of law under

Rules 52 and 65 of the Federal Rules of Civil Procedure.

6. The Permanent Injunction Order will be entered under Federal Rule of Civil
Procedure 65 and will constitute the final judgment in this matter. The
defendants waive the right to appeal from this judgment and will bear their
respective costs, including any attorney’s fees or other expenses of this
litigation.
7. This Court should retain jurisdiction over this matter for the purpose of
implementing and enforcing the Permanent Injunction Order. If defendants
violate the Permanent Injunction Order they may be subject to civil and
criminal sanctions for contempt of court.

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8. Defendants consent, without further proceedings, to immediate revocation of all
Preparer Tax Identification Numbers (“PTINs”) and Electronic Filing
Identification Numbers (“EFINs”) held by, assigned to, or used by defendants.
Defendants consent to disbarment from practice before the Internal Revenue
Service in any capacity.
PERMANENT INJUNCTION ORDER

IT IS HEREBY ORDERED that Defendants Syed N. Ahmed, and
Nasah, Inc., Millinium Financial Solutions, Inc., Mars, Inc.-Hamtramck, and
Mahad, Inc., all doing business as Liberty Tax Service, are PERMANENTLY
ENJOINED, pursuant to I.R.C. §§ 7402(a), 7407, and 7408, effective from the
date of entry of this Order, from directly or indirectly:
a.

acting as a federal tax return preparers, or filing, assisting in, or
directing the preparation or filing of federal tax returns, amended
returns, or other related tax documents or forms for any person or
entity other than Syed N. Ahmed’s own personal tax returns;

b.

assisting, participating, or acting in concert with, any of defendants’
representatives, agents, servants, employees and anyone in active
concert or participation with them in the preparation or filing of
federal tax returns, amended returns, or other related tax documents or
forms for any person or entity;

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c.

filing, providing forms for, or otherwise aiding and abetting the filing
of IRS Forms 1040, 1040X, 8867, 8863, Schedule C, or any other IRS
forms containing false or fabricated information;

d.

advising taxpayers to violate internal revenue laws or unlawfully
evade the assessment or collection of their federal tax liabilities,
including the misuse of IRS Forms 1040, 1040X, Schedule C, or other
IRS forms by inputting false or fabricated information;

e.

owning, managing, controlling, working for, profiting from, or
volunteering for a tax-return-preparation business;

f.

seeking permission or authorization (or helping or soliciting others to
seek permission or authorization) to file tax returns with an IRS
Preparer Tax Identification Number (“PTIN”) and/or IRS Electronic
Filing Identification Number (“EFIN”), or any other IRS service or
program by which one prepares or files tax returns;

g.

using, maintaining, renewing, obtaining, transferring, selling, or
assigning any PTIN(s) or EFIN(s);

h.

representing anyone other than Syed N. Ahmed before the IRS; and

i.

engaging in any other conduct that is subject to penalty under the

Internal Revenue Code

or that

interferes with

the proper

administration and enforcement of the internal revenue laws.

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IT IS FURTHER ORDERED that the United States may engage in postjudgment discovery to monitor compliance with this injunction.
IT IS FURTHER ORDERED that this Court shall retain jurisdiction over
this action for purposes of implementing and enforcing the final judgment and any
additional orders necessary and appropriate to the public interest.
IT IS SO ORDERED.

This 16th day of November, 2015.

s/Gershwin A. Drain
United States District Judge

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APPROVED AS TO FORM AND CONTENT:

CAROLINE D. CIRAOLO
Acting Assistant Attorney General

    s/Erin Lindgren  

LAW OFFICES OF JOHN F.
HARRINGTON

s/ John F. Harringto 

John F. Harrington (P40443)
30500 Van Dyke Avenue, Suite 200
Warren, MI 48093 (586) 7513610
[e-mail]

ERIN LINDGREN
GREGORY S. SEADOR
Trial Attorneys, Tax Division
U.S. Department of Justice
Minn. Bar No. 392617
DCBN: 478236
P.O. Box 7238
Washington, D.C. 20044-0683
Facsimile: [phone]
Telephone: [phone]
[e-mail]

Attorney for Defendants

Dated: 11/12/2015

Attorneys for the United States of
America

                             11/13/2015 

Dated:

s/Syed N. Ahmed

Syed N. Ahmed
Defendant
204 Midwest Club Parkway
Oak Brook, IL 60523

Dated: 11/12/2015

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LOCAL COUNSEL:
BARBARA L. McQUADE
United States Attorney

PETER A. CAPLAN
Assistant U.S. Attorney
211 W. Fort Street, Ste. 2001
Detroit, MI 48226
[phone]
P30643
Email: [e-mail]

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