United States of America v. Tarpey et al, No. 2:2015cv00072 - Document 124 (D. Mont. 2017)

Court Description: FINAL JUDGMENT OF PERMANENT INJUNCTION AGAINST RON BROYLES. Signed by Judge Sam E Haddon on 3/29/2017. (ELL) Modified on 3/29/2017 Cpy to Broyles by US Mail and to USM for service (ELL).
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United States of America v. Tarpey et al Doc. 124 UNITED STATES DISTRICT COURT DISTRICT OF MONTANA BUTTE DIVISION UNITED STATES OF AMERICA, Plaintiff, v. (1) JAMES TARPEY; (2) PROJECT PHILANTHROPY, INC. d/b/a DONATE FOR A CAUSE; (3) TIMESHARE CLOSINGS, INC. d/b/a RESORT CLOSINGS, INC.; (4) RON BROYLES; (5) CURT THOR; and (6) SUZANNE CROWSON f/k/a SUZANNE TARPEY; Defendants. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Case No. FILED MAR 2 9 2017 Clerk. U.S. District Court District Of Montana 2:15-cv-00072-SEH Helena FINAL JUDGMENT OF PERMANENT INJUNCTION AGAINST RON BROYLES Before the Court is the United States' Motion for Summary Judgment against defendant Ron Broyles. The Court enters final judgment as set forth below. FINDINGS OF FACT 1. The Court has personal jurisdiction over Ron Broyles. 2. The Court has subject-matter jurisdiction over this action pursuant to 28 U.S.C. §§ 1340 and 1345 and 26 U.S.C. §§ 7402 and 7408. -1Dockets.Justia.com 3. Broyles assisted in the organization of a timeshare donation scheme, and directly participated in and promoted that scheme, which resulted in timeshare owners claiming improper federal tax deductions for donating their timeshares. 4. Broyles prepared at least 5,000 timeshare appraisals for timeshares to be donated to Project Philanthropy, Inc. d/b/a Donate for a Cause. 5. Each of these 5,000 timeshare appraisals contained false or fraudulent statements about the allowability of tax deductions within the meaning of26 U.S.C. § 6700(a)(2)(A). Broyles knew or had reason to know that these statements were false or fraudulent about material matters. 6. Of these 5,000 timeshare appraisals, at least 1,787 contained gross valuation overstatements of a material matter within the meaning of 26 U.S.C. § 6700(a)(2)(B). 7. Broyles knew that each of these 5,000 timeshare appraisals would be used to prepare portions of federal tax returns, knew that timeshare owners would submit those appraisals in connection with a material matter on those returns, and knew that such portions would result in understatements of tax within the meaning of26 U.S.C. § 6701. 8. Broyles knew (or reasonably should have known) that 1,787 of these 5,000 timeshare appraisals contained substantial valuation misstatements within the meaning of26 U.S.C. §§ 6695A and 6662(e). Broyles knew (or reasonably -2- should have known) that 1,787 of these 5,000 timeshare appraisals contained gross valuation misstatements within the meaning of26 U.S.C. §§ 6695A and 6662(h). 9. By virtue of his preparation of at least 5,000 timeshare appraisals that contained false or fraudulent statements about the allowability of tax deductions, Broyles has interfered with the enforcement of the internal revenue laws within the meaning of26 U.S.C. § 7402. 10. Injunctive relief is necessary and appropriate in order to prevent future violations of the internal revenue laws. PERMANENT INJUNCTION 11. Pursuant to 26 U.S.C. §§ 7402 and 7408, Ron Broyles is PERMANENTLY BARRED from directly or indirectly: (a) preparing (or assisting others in preparing) any property appraisal that will be used in connection with federal taxes; (b) encouraging or advising (or assisting others in encouraging or advising) others to claim charitable contribution deductions on any federal tax return; and (c) organizing, promoting, selling, marketing or advising with respect to (or assisting others in organizing, promoting, selling, marketing or advising with respect to) any plan or arrangement regarding charitable contribution deductions claimed on federal tax returns. 12. Pursuant to 26 U.S.C. § 7402, Ron Broyles is ORDERED to identify and collect the names, addresses, e-mail addresses, phone numbers, and Social -3- Security or other tax identification numbers, of all timeshare owners for whom he prepared a timeshare appraisal since 2010. 13. Pursuant to 26 U.S.C. § 7402, Ron Broyles is ORDERED to produce to counsel for the United States (within 30 days of entry of judgment in this case) all of the information that he collected in compliance with paragraph 12 above. 14. Pursuant to 26 U.S.C. § 7402, Ron Broyles is ORDERED to distribute by mail or email (within 30 days of entry of the judgment in this case) and at his own expense, a copy of this final judgment of permanent injunction to each timeshare owner referenced in paragraph 12 above. The mailings may include a cover letter, but such letter must be in a form either agreed to by counsel for the United States or approved by this Court, and shall not include any other documents or enclosures, unless agreed to by counsel for the United States or approved by this Court 15. Pursuant to 26 U.S.C. § 7402, Ron Broyles is ORDERED to prominently display (within 7 days of entry of the judgment in this case) a copy of this final judgment of permanent injunction on the front page of all websites he controls, maintains, or uses to advertise or market property appraisals, including but not limited to www.appraisetimeshares.com. 16. Pursuant to 26 U.S.C. § 7402, Ron Broyles is ORDERED to provide (within 30 days of entry of the judgment in this case) a copy of this final judgment -4- of permanent injunction to all of his current and former employees and independent contractors involved in his appraisal business, and provide to counsel for the United States (within 45 days of entry of the judgment in this case) a signed and dated acknowledgment of receipt for each person who was provided such a copy. 17. Pursuant to 26 U.S.C. § 7402, Ron Broyles is ORDERED to file with the Court (within 45 days of entry of the judgment in this case) a certification signed under penalty of perjury that he has complied with paragraphs 12 to 16 above. 18. The United States is permitted to engage in post-judgment discovery to ensure and monitor compliance with the judgment in this case. 19. The Court will retain jurisdiction over this action for the purpose of implementing and enforcing the judgment in this case. 20. Pursuant to Rule 65(d)(2) of the Federal Rules of Civil Procedure, entry of the judgment in this case binds the following who receive actual notice of it by personal service or otherwise: a. Ron Broyles; b. Ron Broyles' officers, agents, servants, employees, and attorneys; and c. other persons who are in active concert or participation with anyone described in (a) or (b). -5- IT IS FURTHER ORDERED that the Clerk is directed to enter final judgment in favor of the UAd States and against Ron Broyles. DATEDthis 119 -cfaYofMarch,2017. -~f#utat#h ~E.HADDON \ United States District Judge -6-