Gachette grew LBS from a single store in Orlando, Fla., in 2008 to 239 stores in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, and Texas in 2013.

The widespread action against Gachette, the chain and store operators has involved 11 lawsuits filed since September 2014 against 14 former LBS franchisees and managers. The government alleges that after action was taken against LBS in 2014 many operations simply changed names. The defendants operated 192 of the 239 stores and prepared more than 55,000 federal income tax returns until a court shuttered the chain.

The United States alleged LBS targeted low-income customers, promising them tax refunds of more than $3,000 per child. The defendants utilized some common techniques such as manipulating income and deductions to falsely claim the Earned Income Tax Credit.

Preparers also claimed head of household status for married couples, fabricated self-employment businesses and deducted commuting mileage as business mileage. They also allegedly subtracted fees directly from refunds.

Eleven other former franchisees and manages have been barred from the tax business and many have been ordered to disgorge proceeds. This includes a $1.5-million judgment against Christopher Lawrence of Coral Springs, Fla. Judgments of $1 million each were entered against Jean Demesmin of Mt. Dora, Fla.; Kerny Pierre-Louis of Windermere; and Demetrius Scott of Orlando, Fla.

Judgments of $500,000 each were entered against Tonya Chambers of Winter Garden, Fla., and Kenneth Aikens of Brooklyn, N.Y. A judgment of $100,000 was entered against Wilfred Antoine of Lake Worth, Fla.