Feds alleges Ladue accountant cost government $29 million

The federal government alleges a Ladue accountant has cost it $29 million since 2004 by helping 3,700 clients in 30 states file tax returns claiming bogus deductions.

On Monday, the U.S. Justice Department filed a complaint in U.S. District Court in St. Louis seeking to bar Frank L. Zerjav Sr. of Ladue; his son, Frank L. “Tiger” Zerjav Jr. of Wildwood; and affiliated companies from preparing tax returns for others. The complaint says the Zerjavs operated companies at 1980 Concourse Drive in Maryland Heights.

The complaint asks for an injunction to bar the Zerjavs from filing returns other than for themselves.

In the complaint, the government alleges that the Zerjavs’ schemes reduced some wealthy taxpayers’ income so much that they could claim the earned income tax credit. They claimed deductions for ineligible expenses such as children’s day camps, residential landscaping costs, cable television bills, house-cleaning expenses and fitness center dues.

The government said the Zerjavs set up a corporation for a former National Hockey League player, then allowed him to deduct $25,000 for the purchase of a sport utility vehicle. The client had purchased the SUV for personal use.

The Zerjavs could not be reached for comment.