JACKSON, Miss. ( WJTV ) – The U.S. District Court for the Southern District of Mississippi entered permanent injunctions on Wednesday, July 31 against two men and a business.

According to prosecutors, Thomas Walt Dallas, Jason Todd Mardis and Capital Preservation Services LLC have been barred from making statements about tax benefits for compensation, among other relief. They said the defendants consented to entry of the injunctions.

According to the complaint, Dallas, Mardis and Capital Preservation Services marketed a tax scheme at numerous professional conferences and media appearances targeting medical professionals and small business owners. They allegedly, falsely claimed that customers following their “Tax Plans” could claim multiple deductions to which they were not actually entitled.

Prosecutors said this included the following false claims:

• Customers’ businesses could take deductions for paying large, unnecessary “marketing fees” to newly-created, sham marketing companies
• The marketing companies could employ family members, including minor children, and take deductions for family meals, vehicle expenses and tuition, among other items
• Customers could “rent” their homes to their businesses on a short-term basis at exorbitant rates and avoid paying taxes on the rental income

The complaint alleged that Dallas, Mardis and Capital Preservation Services knew or had reason to know that their statements to customers about the supposed tax benefits of the tax plans were false. The alleged the harm from the scheme could be as much as $130 million in lost tax revenue since 2014.

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