Tax-Relief Scammers to Surrender Over $8 Million in Cash and Assets in FTC Settlement With $77.7 Million Judgment
The Federal Trade Commission (FTC) and the State of Nevada announced on June 2, 2026, that Terrance Selb and Tyler Bennett, operators of American Tax Service, will surrender over $8 million in cash and turn over additional assets to settle charges that they impersonated federal and state tax authorities and promised consumers tax debt relief. The proposed order also bans the two men from debt relief services, tax preparation services and telemarketing, and from impersonating individuals, governments or businesses.
According to the FTC, the company claimed it could settle taxpayers' back taxes for "pennies on the dollar" or for only a fraction of what taxpayers owed, often making those claims before evaluating the taxpayer's circumstances. Evidence the Commission presented in court showed the operators targeted older consumers in upselling fictitious add-on services, often for tens of thousands of dollars at a time. In October 2025, a federal court temporarily halted the scheme operated by Selb and Bennett, as well as seven affiliated entities.
The proposed order imposes a judgment of $77.7 million on Selb and Bennett, reflecting the amount they took from consumers from February 2022 to 2025. Except for the approximately $8 million in cash and other surrendered assets, the judgment is suspended based on their inability to pay; the full amount will become due immediately if they are found to have misrepresented their financial condition. The surrendered cash and assets will be used to return money to consumers.
Litigation is ongoing against nine corporate defendants, including American Tax Service LLC, and the FTC moved for default judgment against them on May 7, 2026. The Commission voted 2-0 to approve filing the proposed order in the U.S. District Court for the District of Nevada; stipulated orders have the force of law when approved and signed by the district court judge.
Related: FTC Brings Three "Made in USA" Enforcement Actions Totaling More Than $867,000 in Consumer Redress
Source: Federal Trade Commission
Published by GSM · USA (original Chinese edition)
Photo: 图：位于美国华盛顿特区的联邦贸易委员会总部 Apex 大楼（资料照片）。Gryffindor 摄，公共领域，经 Wikimedia Commons。 / Photo: The Apex Building, headquarters of the Federal Trade Commission in Washington, D.C. (file photo). Photo by Gryffindor, public domain, via Wikimedia Commons.
[Video] Follow-Up: Transportation Secretary Duffy Holds Press Conference in Washington on Nationwide Ground Stop Response and Flight Recovery2026-11-14
Follow-Up: Canada Offered the FAA Full Assistance During the Nationwide Ground Stop, Including Taking U.S.-Bound Flights; Newsom Offers Thanks2026-11-14