Collections and Medical invoice double-billing, and they were in the clear. But the invoice for the company had to be paid — in order to do so, it was decided that a credit card was needed. The company used its own credit card to pay the invoice. However, the credit card company saw its customer had used its own credit card and decided that was fraud. It flagged up the transaction and a "suspicious activity report" was forwarded to the US Secret Service, as well as the San Bernardino County Sheriff's Department. The former treasurer was investigated, which led to the former CEO and one of the company's consultants being fired. It was reported that the credit card company is now suing the company, claiming that it "fraudulently authorized payments in an attempt to defraud". This lawsuit led to the FBI investigating, and also found that the former treasurer had used fake invoices to claim tax benefits. The former treasurer allegedly used fake invoices to claim tax benefits A spokesperson for the FBI said: "The fraudulent activity appears to date back to 2009. As a result of the investigation, law enforcement was able to identify those responsible and pursue them, thereby averting further criminal activity. "Since 2013, FBI and other local law enforcement authorities have been conducting an ongoing investigation into the tax fraud that victimised the state of California, and its citizens," the spokesperson said. However, the authorities have denied that this is a result of the FBI investigation. An unnamed source close to the matter told the Los Angeles Times: "It has nothing to do with the FBI. It's only a result of our long-running investigation." An IRS spokeswoman said: "We cannot discuss specific cases or comment on details in an ongoing case. We have great respect for our law enforcement partners and are appreciative of their work in bringing this matter to justice. "Our goal is to help people understand what the filing requirements are and the appropriate tax filings. When they do not meet the requirements, we work with them to understand their responsibilities." The company's website has been taken down and replaced with a note reading: "The website you were trying to access has been taken down due to fraudulent activity. If you received an email purporting to be from this website, and you did not give permission for the email, do not click any links." The FBI has confirmed to TechRepublic that the case is under investigation. "The FBI is working to determine if any federal laws were broken, and whether civil rights were violated," an FBI spokeswoman said. "The FBI does not have jurisdiction over state-level crimes. If you believe you were a victim, please file a complaint with your local police department." The spokeswoman added: "FBI agents are working aggressively to investigate these cases and bring perpetrators to justice." It is not known if any further action is being taken by local or federal authorities. Related cybersecurity and data breaches coverage: