United States America v. Simmons, 2:22-cv-11916

Richmond Simmons, Herman E. Simmons, and Profile Income Tax Co. were enjoined by a Permanent Injunction in July 2023 from engaging in tax return preparation due to allegations of persistent fraudulent tax practices.
The Injunction required defendants to cease tax preparation, produce customer lists, notify clients of the injunction, and post a physical notice of the order.
After certifying compliance, Richmond Simmons was found to have violated the injunction by continuing to prepare and file fraudulent tax returns for others.
Investigation by the United States confirmed Simmons’ continued violations, including efforts to impede government oversight by warning clients not to cooperate with investigators.
The Government sought sanctions for contempt, requesting disgorgement of $4,460 in illicit fees and $17,502.09 in investigation and litigation costs, which Simmons did not oppose.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Violation of Permanent Injunction	Simmons repeatedly prepared tax returns in violation	Admitted at hearing; no formal response	Simmons found in civil contempt
Disgorgement of Ill-Gotten Gains	Government entitled to recover profits from contempt	No response	Disgorgement of $4,460 ordered
Recovery of Investigative and Litigation Costs	Costs were necessary and reasonable to rectify violations	No response	$17,502.09 in costs awarded to United States
Coercive and Compensatory Sanctions	Sanctions needed to enforce compliance and compensate	No response	Total sanctions of $21,962.09 imposed

Gompers v. Buck’s Stove & Range Co., 221 U.S. 418 (1911) (outlining coercive and compensatory purposes for contempt sanctions)
United Mine Workers of Am. v. United States, 330 U.S. 258 (1947) (damages from civil contempt must compensate the harmed party)
TWM Mfg. Co. v. Dura Corp., 722 F.2d 1261 (6th Cir. 1983) (primary purposes of civil contempt are compliance and compensation)