Davis was accused of conspiring with others, including her niece Ladonna Davis, who she is accused of instructing to falsify tax documents for the firm's clients. The company says Davis also provided 2FT clients with false documentation to support phony or padded charitable contributions and mileage expenses on their individual income tax returns for use in potential or pending audits.

Additionally, the indictment alleges that Davis filed false income tax returns for herself for 2007 through 2009 that understated 2FT's gross receipts and claimed phony business losses for the tax preparation operation.

The two were also targeted by a lawsuit filed in 2013 by the District of Columbia. That action alleged that the couple conspired with Kimberle Davis – who is not related – who was then an employee of the Office of Tax and Revenue. Kimberlee Davis improperly accessed tax records to check whether Fast Facts clients were being audited, and if so, the status of any audits.

The lawsuit claimed the District lost more than $789,000 through the issuance of unwarranted refunds. However, it had recovered more than $550,000 from taxpayers whose returns were fraudulent. The District government also sought to recover $212,174.04, along with $1 million in punitive damages.

In 2011, Ladonna Davis, then 28 years old, plead guilty to her role in which the government said there were more than 3,000 returns filed that claimed more than $14 million in refunds. Kimberlee Davis worked part-time at 2FT in the evenings.