Deutch Announces Business Closures Amidst Allegations Of Stealing Tax Refunds From Clients

SACRAMENTO (CBS13) -- You've probably seen her commercials; "The Tax Lady" Roni Deutch has terminated her business months after allegations that she stole tax refunds from clients.

She is best known for her tax attorney television commercials, offering help for those facing tax consequences.  But Thursday, Roni Deutch stood at a podium outside her office, and her frustration was apparent.

"I am letting you know right now that I am turning in my State Bar license after 20 years," said Deutch.

The emotional Deutch also announced the closure of her tax branches, 80 of them in 23 states.

"As a result of the Attorney General's lawsuit, my business has decreased by over 90 percent," Deutch says.

Thursday's news conference comes after nearly a year of investigation by the Attorney General and a $34 million lawsuit accusing Deutch of swindling her clients.   California's top cop even asked the Sacramento County Superior Court to send the tax lady to jail.

The state investigation into Roni Deutch's firm began in August of last year.  Then Attorney General Jerry Brown sued Deutch for more than $34 million for allegedly defrauding thousands and customers.

In November of 2010, Deutch was told to stop collecting up-front fees from her customers.  And last month, Attorney General Kamala Harris said she wanted to put Deutch in jail, and accused her of shredding millions of documents.

"I personally now have $5 million in debt and have lost everything I own," explained Deutch.

After her prepared statement, CBS13 asked her about new allegations that she shredded millions of documents and failed to pay clients refunds.

Deutch responded with, "I absolutely cannot and I'm sorry, but I cannot speak about that.