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The Wisconsin Department of Justice Obtains Consent Judgment Against Nicholas Wallace, Owner of All Star Tax Service in Milwaukee

 

MADISON — Attorney General J.B. Van Hollen has announced that the Wisconsin Department of Justice has obtained a consent judgment to resolve its enforcement case against Milwaukee resident Nicholas S. Wallace, the owner and operator of All Star Tax Service.  All Star is a tax preparation business located at 4935 W. Center Street in Milwaukee. 

 

The state sued Wallace in December 2012, alleging that Wallace had violated numerous Wisconsin lending and consumer protection laws, including operating an unlicensed consumer lending business; failing to provide proper documentation and disclosures relating to the loans; and making misrepresentations to consumers through advertisements and in-person.  According to the complaint, Wallace made loans to approximately 200 consumers without a license, at high interest rates, and made misrepresentations to consumers regarding the loans and his tax services.

 

The consent judgment permanently enjoins Wallace from engaging in business activities that violate Wisconsin law, and requires him to reimburse the state for the costs of its investigation.  Specifically, the judgment provides that the loans Wallace made to consumers are unenforceable, and bars him from taking any steps to collect those loans.  It also requires Wallace to base his customers’ tax returns on W-2 forms and other required data, rather than merely paystubs.  Further, Wallace is prohibited from deducting any fees from his customers’ tax refunds; instead, those refunds must be sent directly to the customers rather than to Wallace.  Finally, Wallace must reimburse the state $2,000 for its expenses of investigating and bringing the action.

 

“This case reflects the state’s commitment to protecting Wisconsin consumers from injury from illegal business practices.  Our partnership with the Department of Agriculture, Trade and Consumer Protection and the Department of Financial Institutions allowed us to move swiftly in this case to halt illegal practices,” Attorney General J.B. Van Hollen said.

 

The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) provided substantial investigative support for this action, which also was referred to the Department of Justice by the Wisconsin Department of Financial Institutions (DFI).

 

The settlement was approved by Milwaukee County Circuit Court Judge Jane Carroll.  The State of Wisconsin is represented in this matter by Assistant Attorney General John Greene. 

 

A copy of the Consent Judgment is available at the following link: