In a significant ruling, the U.S. District Court for the Northern District of Texas has issued permanent injunctions against Charles Dombek, a licensed CPA, and his company, The Optimal Financial Group LLC. The court’s decision prohibits both Dombek and Optimal from organizing or promoting dubious tax plans that rely on misleading tactics, including the creation of sham management companies and the misuse of personal expenses as business deductions.
The Optimal Financial Group, a tax planning firm based in Williamsburg, Virginia, offers specialized services in tax preparation, tax mitigation, asset protection, risk management, and wealth accumulation. According to their website, they provide cost-effective solutions, delivering professional tax preparation services to individuals and small businesses at prices lower than those of national tax service chains and local CPA firms.
The court’s order also bars Dombek from preparing tax returns for anyone other than himself, while Optimal is restricted from filing federal tax returns that reflect the contentious tax schemes they had promoted.
According to the government’s complaint, Dombek and his firm operated a nationwide tax strategy designed to unlawfully minimize customers’ income tax liabilities. This involved shifting income to lower tax brackets through sham management entities, deferring taxable income improperly, and falsely categorizing personal expenses as legitimate business deductions. Dombek, who touted himself as the “premier dental CPA” in the United States, is accused of knowingly disseminating false information about the benefits of these schemes.
The government estimates that the financial damage to the U.S. Treasury from Dombek’s fraudulent activities could exceed $10 million. The Justice Department’s Tax Division, led by Deputy Assistant Attorney General David A. Hubbert, emphasized the importance of combating such schemes that jeopardize taxpayers’ financial well-being.
This ruling underscores ongoing efforts by the IRS and the Justice Department to crack down on tax fraud. Each year, the IRS alerts the public to various scams, warning taxpayers to remain vigilant against promoters pushing deceptive tax reduction schemes.
Over the past decade, the Tax Division has successfully obtained injunctions against hundreds of dishonest tax preparers and promoters. For those suspecting violations of these injunctions, the Justice Department encourages reporting any information regarding potentially illicit activities.
