CORPORATIONS THAT OWNED JACKSON HEWITT FRANCHISES IN THREE STATES AGREE TO BE BARRED FROM TAX RETURN PREPARATION

The U.S. Department of Justice issued the following press release:

The Justice Department announced today that it has resolved lawsuits against corporations that operated Jackson Hewitt tax preparation franchises in Atlanta, Chicago, Detroit and Raleigh-Durham, N.C.

Under stipulated injunction orders that will take effect immediately if approved by federal judges in each city, corporations that owned and operated franchises in Atlanta, Chicago and Detroit will be permanently barred from preparing federal income tax returns. Those corporations are selling their Jackson Hewitt franchise rights to new owners. A corporation that owns a franchise in Raleigh-Durham will continue to operate, but will be subject to restrictions and monitoring requirements contained in a permanent injunction to be entered against it.

The government also has settled with a number of the individual defendants in the cases, including Farrukh Sohail, who owns all or part of each of the …