New York's Attorney General filed a $250 million fraud suit against H&R Block Inc., accusing the tax prep giant of steering hundreds of thousands of clients to investment retirement accounts with costs higher than what they would earn back.
Attorney General Eliot Spitzer said the Express IRA accounts were "virtually guaranteed to lose money" because of hidden setup, maintenance and re-contribution fees, as well as low interest rates. The lawsuit, filed in state Supreme Court in Manhattan, says Block sold IRAs to 500,000 clients, including 30,000 New Yorkers.
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