The housing meltdown has sent shock waves throughout the United States, with foreclosures reaching over 4 million. In an effort to help current homeowners that are on the brink of losing their home, the government initiated a program whereby homeowners can receive a free fraud review of their foreclosure to make sure there are no issues.

It was recently reported by the Palm Beach Post that few homeowners have taken advantage of the free foreclosure fraud review. Specifically, less than 3% of the total eligible for the fraud review have taken advantage.

It was reported that representatives have sent out over 4.3 million notices to those that qualify for the review, with only 121,725 people responding thus far. The initial deadline of April 30, 2012 has been pushed back to July 31, 2012, due to the low response.
Some of the main concerns with the program include:

1. A homeowner must have been in some process of foreclosure in 2009 and 2010 to be eligible. But it's only for a two-year period and a lot of the subprime loans went into foreclosure before that.
2. Concerns about whether homeowners would have to sign away rights to future claims if they accept an award for financial harm found during the foreclosure review.

One of the main reasons there has been such a low response is that many homeowners treat the mailing as another piece of junk mail. Homeowners receive several mailers regarding foreclosure assistance and it is believed by many that this correspondence blends in with the rest. Others believe homeowners think it is a scam.

I tell my clients to apply for the review, but only a handful have alerted me to the letters.

They get a lot of advertisements and there are so many scams out there that they might think it's just a scam. It's a bit of a hazy program.

Have you received a free foreclosure review mailer? Have you gone through the process? Leave a comment below discussing you experience.

Nobody I know likes to be ripped off. I am sure that you would not enjoy it as well. It is unfortunate that this occurs, but is a reality that we all must face. In an effort to inoculate the public against being ripped off, each year the Internal Revenue Service provides a list of the twelve biggest tax frauds for that year. Many of these scams are simple in design and implementation, and well known methods of taking advantage of vulnerable people. These acts occur at all times of the year, but most of them come to fruition during tax season.

So as the tax deadline of April 15 quickly approaches, we want you to be aware of what is lurking out there. Most of the scams are easy to spot. Just remember a few cliches and you will stay safe.

First cliche – There are no free lunches!

Second cliche - If it sounds “too good to be true”, it is!

IRS List of Top Tax Ripoffs for 2012

1. Identity Theft
2. Phishing
3. Tax Preparer Fraud
4. Hiding Income Offshore
5. Free Money from the IRS
6. False or Inflated Income or Expenses
7. False Form 1099 Refund Claims]
8. Frivolous Arguments
9. Zero Wage Claims
10. Abusing Charitable Deductions
11. Disguised Corporate Ownership
12. Misusing Trusts

Let’s explore in more detail the top three:

Topping the list again is IDENTITY THEFT

Identity theft is the biggest problem in the electronic age. The internet and its electronic community have rushed forward, ahead of all methods of control, and create a “Wild West” atmosphere. The thing about the United States that makes us great is our respect for the rule of law. However, that is not true for the Internet. The controls, privacy protections, and rule of law are just not moving as fast as the Internet community is moving forward. False tax returns are one common way thieves take advantage of both the government and the victims. The IRS has stepped up efforts to control Identity Theft tax rip offs but because ID thieves use real social security numbers and easy to find personal information (see Face Book, Google +, and Twitter) it is a hard job. If you get a notice that more than one tax return was filed in your name, make sure you report it immediately. The IRS has create a significant system to catch ID theft on tax returns and last year they saved over $1,400,000,000 in taxpayer refunds, but the thieves are smart and the schemes are getting more and more complex. If you are suspect that your ID was stolen you need to contact the IRS ID Protection Unit at www.IRS.gov/identitytheft.

Fishing! No, wrong, sorry: Phishing!

Phishing is when ID thieves lure victims into giving valuable identity information to the ID thief. This is typically carried out using email requests or setting up websites that look and feel like a legitimate site. Because there is really no difference between a “Real Website” and a “Fraudulent Website” it is easy to mistake them. Once the ID thief has your information, you are likely to get ripped off.

Here is a KEY POINT with respect to the IRS. The IRS does not use email to collect, or even request personal information from taxpayers. They certainly do not use FaceBook, Twitter or any other social media to contact or collect information. Do not trust an email, FaceBook contact, or any electronic contact from the IRS. If you do get an email from the IRS, or even the EFTPS – which is the Electronic Federal Tax Payment System, that looks legitimate but was unsolicited, you need to report that to the IRS through their specially designed Phishing unit at phishing@irs.gov.

Preparer Fraud

Almost nobody understands the tax code. Certainly those simple to fill in return forms are a nightmare to get right. So, many of us use accountants, CPA's, or tax attorneys to help us at the end of the tax year. But the expense of paying for a professional is quite burdensome for most people, so they either do it themselves, or look for a more economical option. The “Economical” route has created a space in the market for fraudulent tax preparers. These thieves will take money out of their clients’ refund, or charge unfair fees to prepare the return. They promote their service with unrealistic promises of guaranteed, overinflated refunds. Further, these thieves then have access to your personal information and can steal from you twice!

Here are some good standards to look for when choosing a Tax Preparer:

• Every paid “tax preparer” must get a “Preparer Tax Identification Number” (PTIN) from the IRS. This number must be placed on every prepared tax return. If your tax preparer does not have a PTIN then you should not sign the return.
• Every Preparer should give you a free copy of the return. If you are not given a copy of your tax return there may be a problem. If your Preparer is promising to get you an incredible or unusual amount on your return, I would be very wary.
• Tax preparers should be working on a set fee. They should not be on a contingency or commission basis and you should never have to pay the preparer from your refund.
• Finally, never allow a preparer to convince you to put false information on a tax return. That means you can never put in false income or false credits. If you do you are subjecting yourself to double jeopardy, because the preparer will have you and the IRS will also not be happy with your false information.

As a firm that concentrates on IRS Tax Fraud including Qui Tam and Whistleblower Issues we want you to beware of tax season scams! If you believe you are the victim of a scam, you need to report it as soon as possible. The IRS Criminal Division and the Dept. of Justice take online, telephone and in person scams seriously. If you have questions or have information about a tax fraud where more than $2,000,000 is at stake, call our office to report the fraud. Remember, when reporting tax fraud you must be first in line, you must have convincing information, and you must secure your claim to get paid the “Relator’s Share”. Call our office for a free consultation: LaBovick Law Group at 561-625-8400, or email info@labovick.com.

"New Name to Reflect the full scope of the Legal Team and Strength of Brand"

We are pleased to announce that LaBovick & LaBovick, P.A. has changed its name to LaBovick Law Group. This will enable the LaBovick Law Group to present a clear and strong brand in the Florida legal community.

The name change will reflect the firm's dynamic history as one of the preeminent law firms in the legal community. Founded by Brian LaBovick, Esq. and joined by his wife, Esther Uria LaBovick, Esq. the firm has moved beyond a small firm practice and into a full service firm serving clients throughout the nation. As part of this brand shift, the LaBovick Law Group will adopt a new tag line, “Your Full Service Law Firm” to reflect the firm’s ability to serve all the legal needs of clients.

The LaBovick Law Group will be committed to continuing to provide the expert legal services that clients have come to rely on in such core practices as Personal Injury, Qui tam, Employment Law, and Complex Litigation. The LaBovick Law Group is one of Florida’s leading civil trial law firms assisting individuals and businesses throughout Florida. In addition to its headquarters in Palm Beach Gardens, the firm has offices in West Palm Beach, Boynton Beach and Boca Raton.

Managing Shareholder, Brian LaBovick, Esq., stated "Over the past few years, several prominent attorneys have joined the firm, adding legal expertise in practice areas such as Maritime, Estate Planning, Tax Planning, Asset Protection, Complex Litigation, Foreclosure Defense, Mortgage Modification and Bankruptcy. We have selected a new name reflective of the full scope of legal services being offered and incorporated the strength of the LaBovick brand in the community."

Continue reading "LaBovick Law Group Announces New Firm Name" »

It didn't take long for the Rick "Let's get back to work" Scott to show his real colors. Yesterday he rolled out his budget which calls for the slashing of monies earmarked for education, justice and the department of corrections.

Along the way, he plans on firing nearly nine thousand employees, many of whom are teachers. In exchange, he fattened the budget for the Governor's office and lowered taxes for big business. And nobody saw this coming?????

The bright side is that we will have dumber criminals while we change the State's name from Florida to Allstate.

Click on the following link to read more on What Gov. Scott's proposed budget cuts means for education in Florida.

I am pleased to announce that yesterday our Investment Fraud Seminar in West Palm Beach was a huge success. It was held in the beautiful Phillips Point Club. The beautiful intracoastal was a great backdrop for this well attended Seminar.

The 4 hour seminar, Investing in a Post Madoff Environment: Financial Fraud: How it's accomplished, how to detect it, and how to recover from it was attended by over 100 people from South Florida. The attendees included, CPAs, Attorneys, Bankers, Financial Representatives and a host of other professionals. The Seminar was sponsored by the Financial Services Divsion of LaBovick Law Group, P.A.

Speakers at the Seminar included:

William Nortman, Esq., Akerman Senterfitt

Richard A. White, Turris Consulting, LLC

Moderator: Jeffrey S. Grubman, Esq, Jeffrey S. Grubman, P.A.

Topics coverd at the Seminar included areas such as: Investment fraud, Ponzi schemes, FINRA, Churning, Florida Investor Protection Act, Churning, and much more.

We look forward to sharing more information on our next educational seminar on investment and financial fraud.

If you would like to have a transcript of the seminar or more information on investment fraud, let us know.

Our vendor partner for this program, the Daily Business Review, will be publishing a printed version of the transcript in 3 - 4 weeks in their paper as a supplement.

Stay tuned...

LaBovick Law Group, PA filed a FINRA arbitration against Ameriprise Financial Services, (NYSE: AMP), formerly known as American Express Financial Advisors (AEFA) for stockbroker misconduct and negligence. The claim alleges that Deborah Amilowski, Financial Advisor for Ameriprise Financial Services, failed to properly advise a Senior investor on risks associated with unsuitable products for a person of that age, at the time of the initial investment and negligence in properly identifying the beneficiary resulting in additional loss to the trust.

The FINRA Statement of Claim, filed on August 13, 2009, stated that Ms. Amilowski, recommended a RiverSource variable annuity as an initial investment to a 77 year old investor at the time of purchase, thus ineligible for a guaranteed death benefit. This investment was too risky for someone of this age.

Click on the following link to learn more on the FINRA Arbitration claim against Ameriprise Financial.

Dear Law Planet Blog Readers,

Welcome to LaBovick Law Group, P.A.

We are delighted to incorporate The Law Planet Blog into our family of law blogs.

A little history on the firm:
Established: 1992
Founder: Brian F. LaBovick, P.A.
Locations: Palm Beach Gardens (Headquarters), West Palm Beach, Boynton Beach
Attorneys: 9
Practice Areas: Plaintiffs Firm handling: Financial Services, Commercial Litigation, Qui tam, Personal Injury, Employment Law and Workers' Compensation

We have some new exciting additions and changes coming soon to the Law Planet Blog. Here is a hint: It involves listening...Soon you will be able to hear our attorneys discuss topics such as investments, securities, and stockbroker issues.

Stay Tuned...