American Tax Relief: the FTC's first tax-relief case ended with a $103 million judgment and over $15 million surrendered
In September 2010 a federal judge in Chicago froze the assets of American Tax Relief LLC and its principal Alexander Seung Hahn at the FTC's request, after the FTC alleged the company had collected more than $60 million by falsely claiming it could reduce consumers' tax debts. By the time the case settled in January 2013, the FTC alleged consumers had been bilked of more than $100 million; the defendants surrendered more than $15 million in cash and assets against a $103.3 million judgment.
- Year
- 2010
- Where
- United States
- Outcome
- Settled
- Reported loss
- $100.0 million
- Victims
- Not stated in the sources
- Schemes
- Tax debt relief scams
- Last reviewed
- 2026-09-28
The facts, as recorded
- On September 24, 2010 the US District Court for the Northern District of Illinois entered a temporary restraining order freezing assets, prohibiting deceptive claims and appointing a receiver over American Tax Relief LLC, the FTC announced on October 6, 2010.
- The FTC alleged the company advertised on television, radio and the internet, routed 'free consultation' calls to commission-based sales representatives, and charged upfront fees of $3,200 to $25,000 for promised relief.
- The FTC alleged the defendants falsely claimed they could settle taxes 'for a fraction' of what was owed, remove liens and stop garnishments, and that consumers 'qualified' for IRS programmes such as an Offer in Compromise, penalty abatement or an instalment plan.
- The FTC's 2010 release notes the defendants continued operating after a criminal search warrant in April 2010, and lists a Ferrari, a $3.4 million house and liens on other properties among the assets sought.
- The settlement, entered January 29, 2013 and announced February 5, 2013, imposed a $103.3 million judgment against American Tax Relief LLC, Alexander Seung Hahn and Joo Hyun Park; the judgment was suspended once the defendants surrendered cash and assets, a Beverly Hills home, a Los Angeles condominium, jewellery, gold items and a 2005 Ferrari, worth more than $15 million.
- The order permanently banned American Tax Relief, Hahn and Park from telemarketing and from selling debt relief services; the FTC described the case as the agency's first action against a tax relief company, and said the full judgments become immediately due if the defendants misrepresented their finances.
Why this case matters
This was, in the FTC’s own words, its first action against a tax relief company. It set out the template that later cases follow: an advertising-driven funnel, a paid “consultation” that is actually a sales call, a promise that a customer “qualifies,” and a large upfront fee.
From $60 million to over $100 million
The FTC’s October 2010 release said the company had collected more than $60 million; its February 2013 settlement release described a scheme that “bilked consumers out of more than $100 million.” Both figures are the FTC’s allegations, and this page reports them as alleged, not as adjudicated; the sources read for this page do not explain why the figure grew between the two releases.
What the defendants gave up
The judgments imposed were large, $103.3 million against the company, Hahn and Park, but were suspended once the defendants handed over more than $15 million in cash and property. The assets the FTC listed included a Beverly Hills home, a Los Angeles condominium, jewellery, gold items and a 2005 Ferrari. The result was a recovery of roughly a seventh of the amount the FTC alleged was taken, together with permanent bans from telemarketing and from selling debt relief services.
The caveat
This case ended in a settlement, not a trial verdict. The FTC’s releases describe what the agency alleged and what the settlement required; the sources read for this page do not state whether the defendants admitted the allegations, so this page treats every claim about the company’s conduct as the FTC’s allegation. The named individuals are described only by what the public court order and FTC releases state.
Sources
- At FTC's Request, Court Halts Tax Relief Scam That Collected More Than $60 Million. Federal Trade Commission. Accessed 2026-09-28. Supports: The September 2010 restraining order, the court, the $3,200-$25,000 fees, the advertising channels, the 'free consultation' sales routing, the false claims alleged and the April 2010 search warrant.
- FTC Settlement: Tax Relief Scammers Agree to Pay More Than $15 Million. Federal Trade Commission. Accessed 2026-09-28. Supports: The 2013 settlement: the $103.3 million judgment, the more than $15 million in surrendered assets, the permanent bans, the suspension terms and the FTC's 'first action against a tax relief company' description.