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'Tax Lady' Roni Deutch Speaks Out About Criminal Charges Against Her Being Dropped

SACRAMENTO (CBS13) — Roni Deutch, the woman known nationwide as the "Tax Lady" spoke out Tuesday about the criminal charges against her that were dropped by the state earlier this month.

Deutch was sued in 2010 by the state of California, which claimed she participated in a scheme to take money from clients while mishandling their tax problems. In 2011, she announced she shuttered her offices because of the suit. Around the same time, she was accused of 1609 counts of contempt of court for allegedly not following court orders to save documents and pay back clients.

Near the end of 2014 California Attorney General Kamala Harris dropped 1541 counts of contempt of court against Deutch. Then on August 7, Harris dropped the remaining counts as part of a global resolution, according to a statement from Deutch.

"In a very public, sensational and humiliating manner, I was accused of committing 1609 separate reprehensible criminal contempt acts including intentionally stealing my clients money, intentionally shredding approximately 2.7 million law firm client documents, and intentionally dissipating personal and law firm assets," states Deutch. "I've always maintained my innocence against all charges, all allegations and all inflammatory accusations made against me over the past 5 years," Deutch adds.

Deutch will be forced to pay $2.5 million instead of the $34 million in the civil suit against her business operation. She will pay $10,000 in fines and do 350 hours of volunteer service for the contempt allegations in exchange for dropping the charges.

Rosenfeld insists Deutch never meant to hurt anyone, rather her business exploded and it was tough to handle.

"It got enormous, but her heart was in the right place," he said. "It has been devastating to her, but it will not destroyed her. Roni Deutch will be heard from again."

Deutch surrendered her law license in the process, but the ruling leaves the door open for her to possibly get it back.

Deutch said she is grateful for the outcome and thankful it is over.

"I'm grateful this matter is finally over so I can move forward with my life," Deutch states and adds, "I'm sending Attorney General Harris a very compelling detailed letter so she will know how I feel about the past 5 years of legal proceedings with her office."

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