ATTORNEY GENERAL ABBOTT SCORES MAJOR VICTORY AGAINST PROPERTY TAX FREEZE SCAM ARTIST THAT DEFRAUDED SENIORS

Collin County deceptive business will face seniors in trial court

McKINNEY - Texas Attorney General Greg Abbott won a victory for senior property owners today. A district judge ruled a Collin County business misled senior property owners. The case will go to trial December 7 to determine the amount of penalties it owes the state.

The Attorney General alleges the for-profit business, State and County Tax Reduction, and owner Ronald Gene Morgan misled property owners last December by illegally offering to help them acquire a property tax freeze using misleading correspondence that appeared to be official government business. Such schemes are prohibited under the Texas Deceptive Trade Practices Act.

District Judge Nathan White ruled today that the defendant was liable for violations of the Texas Deceptive Trade Practices Act and Texas Property Code, but the penalties and fees are still in dispute.

“My office will continue to be on the lookout for those who would scam our senior citizens in this manner,” said Attorney General Abbott. “We look forward to trying this defendant vigorously in court for causing so much confusion among homeowners and the local taxing authorities.

“Homestead exemption filings are, and have always been free, through local tax offices. This was merely an attempt to deprive seniors of money that rightfully belonged to them. We believe the penalties are just.”

Several thousand solicitation letters the company mailed to residents over age 65 were unlawful because they did not contain required language stating that the correspondence amounted to advertising for services, not county tax office business.

The Attorney General has interviewed many senior citizens over age 65 who are prepared to testify and who previously complained about the business. At trial, state attorneys will ask the court to approve appropriate civil penalties and attorney fees, in view of the conduct committed by the company to deceive seniors about applying for tax freezes in the homestead application process.

Last December, the Attorney General obtained a restraining order against Morgan’s company, requiring refunds to all senior citizens who had answered the deceptive mailings and paid fees.

updated: 05/14/2008