The franchisee that owns virtually all the Jackson Hewitt tax-preparation outlets in Raleigh has reached a voluntary agreement with the Justice Department to suspend all new business.
According to the agreement, the 125 franchises affected by the lawsuit will no longer accept new clients. The offices will remain open to complete returns for existing customers.
The order impacts 34 offices in the Raleigh area.
The Justice Department last week sued Jackson Hewitt, targeting 125 franchised offices owned by Farrukh Sohail of Atlanta. Investigators accused the tax preparer of submitting thousands of fraudulent tax returns at an estimated cost to the government of 70 million dollars.
Sohail owns Jackson Hewitt locations in Raleigh, Chicago, Detroit and Atlanta.