Police, IRS investigate Mo Money Taxes

NORFOLK, Va. (WAVY) - Norfolk police are investigating Mo Money Taxes and have alerted the IRS about customer complaints.

An angry crowd gathered outside the Mo Money Taxes store on Granby Street in Norfolk Monday demanding they receive their refund checks. There was a heavy police presence, with officers inside and outside the building.

The owners showed up with refund checks for some customers and began distributing them shortly after 5:30 p.m., after banks had already closed for the day.

Police let people enter the store five at a time. Employees checked to see if the customers' names were on a list of 200 checks. A lot of people in line left empty handed.

"Sorry is not good enough, Mo Money," says customer Rhoda Williams when she found out she would not receive a check.

And many who received their checks were disappointed to see how much they paid in fees.

The process lastly late into the night. After the last person came out, the owners of the Norfolk locations did too.

Sunday night, CEO Markey Granberry said the checks would be handed out at the Brambleton Avenue location from noon to 5 p.m. Monday. Granberry told WAVY.com armed security guards would be at the store and only customers receiving checks would be allowed to enter.

"The office managers and everyone felt like their life was in danger," Granberry told WAVY.com by phone Sunday. "So they went to an off site location, they got their stuff together, and made sure they printed all of the checks out of all the locations."

When 10 On Your Side arrived at the Brambleton Avenue location Monday, the building was boarded up and the doors were locked. Customers were lined up outside waiting for someone from the company to show up, but that never happened. Granberry sent WAVY a text with the word "Granby." 10 On Your Side went to the Granby Avenue Mo Money location and again, the doors were locked and no one from the company was there. Hundreds of people were at the Granby Street location; the line stretched down the street. Some customers brought checks with them they had previously received from Mo Money. Those customers said the checks could not be verified, which means they could not be cashed.

Chris Amos, the spokesperson for Norfolk Police, came to the Granby Street scene. He told WAVY.com Norfolk Police have alerted the IRS and the Attorney General's Office about the situation and the customers, he referred to as "victims". Amos encouraged everyone in line to file a formal complaint with the IRS at the Federal Building in downtown Norfolk. If they can't get to the building, they can call 1-800-829-0433.

WAVY.com spoke to Virginia Congressman Bobby Scott Monday. He said he is going to personally take the complaints against Mo Money Taxes to the Justice Department.

Customers have been fighting to get their refund checks for days.

Friday night, crowds gathered outside Mo Money Taxes locations in Norfolk, demanding refund checks. Angry customers broke windows at the Brambleton Avenue location. The owner of the Granby Street location told WAVY.com he printed 50 checks Friday and 30 could not be cashed.

"It could have been invalid for several reasons," said Granberry.

"It could have been invalid because the customer tried to validate it before they got to the check cashier. That could be the case. Then again, it could be the case that those checks have to be updated inside of the system for validation. It takes 30 minutes after the check is finished, printed out before it is validated."

One customer who received a refund check from the Granby Street location Friday, showed WAVY.com a Post-It note she says she received from an employee. The note showed a refund amount of nearly $2,000. But the total on the check started at $1,000 and after deductions the actual check was written for $131 and some change.

WAVY.com asked Granberry about those deductions.

"If a customer owes the Internal Revenue any money, if they have any debt with any type of organization, whether it be child support, the Department of Human Services, a student loan, a previous IRS debt of anything, or if they have to file a 8862 because they are not allowed to carry dependents, anything going on between any of those agencies, the Internal Revenue deducts that money."

WAVY.com also asked Granberry about Gladys Johnson, the viewer who first contacted WAVY.com about a nearly $4,000 refund check she says Mo' Money Taxes owes to her.

Granberry said Johnson's check would not be among the checks that were supposed to be handed out Monday.

"We are doing a special investigation on her, because her file was not inside this $6 million," said Granberry. "So tomorrow (Monday) I'll be doing a special investigation - I spoke with Ms. Johnson - I'll be doing a special look at her file to see if there's some type of error or glitch with her file at the processing company."

Granberry says the previous software glitch has been corrected. He issued an apology to Norfolk customers for any inconvenience Mo Money