Jun. 28—A tax consulting firm that wrongly advised Marywood University it qualified for a $6 million pandemic relief tax credit is seeking more than $900,000 in fees for the faulty advice, the college alleges in a federal lawsuit.

The suit against Synergi Partners Inc. of Florence, South Carolina, asks a judge to void the university's contract, alleging the firm intentionally inflated the purported tax credit so it could earn a larger commission. The school later learned it did not qualify for any credit, but Synergi still demands its commission be paid, the suit says.

The lawsuit is one of at least two filed against Synergi. A second case, filed in Missouri by CB Engineering, makes similar allegations.

Jim Brown, Synergi Partners CEO, was surprised to learn of Marywood's lawsuit. He said he did not know about the university's concerns and vowed he will not seek payment if the college is not eligible for the assistance.

"If the university does not pursue the credit, we absolutely would not expect them to pay us," Brown said.

His statement conflicts with information in the lawsuit, which says Marywood advised Synergi of its concerns in a May 27 letter. The company responded by threatening to sue, the suit says.

At issue is the Employee Retention Tax Credit (ERTC) under the Coronavirus Aid Relief and Economic Stimulus Act (CARES). Marywood hired Synergi on March 9, 2021, to evaluate whether it qualified with the understanding the firm would be paid a 15% contingency fee.

The firm advised the school it qualified for a $6,012,944 credit, which earned it a $901,942 fee. University officials were skeptical of the calculation, in part because of its size, the lawsuit says. The school's auditing firm, CliftonLarsonAllen LLP, reviewed the finding and determined the college did not qualify for any tax credit.

"One would reasonably expect payment to be contingent upon whether or not Marywood could actually avail itself of the ERTC," Marywood's attorney, William Clements of Philadelphia, says in the suit. "It is Synergi's position that whatever amount of the ERTC that Synergi comes up with, and whether or not the amount is right or wrong ... Marywood still must pay Synergi a nearly $1 million contingency fee."

Brown insisted he never saw Marywood's letter and was unaware his company demanded payment or threatened to sue.

"I've been doing this a long time and always have my clients' interest first," Brown said. "I would never expect them to pay us for something that is of no benefit to the university."

The lawsuit does not specify why Marywood believes it does not qualify. However, Juneann Greco, spokeswoman for the school, said Marywood did not meet ERTC guidelines because the university never partially or fully shut down and did not experience the required revenue loss.

Brown said Synergi is still reviewing the matter but believes the company's position is correct.

"If alternative facts or circumstances which we were not aware of would alter that conclusion we are certainly going to review those with the university," he said.

It's unclear what will happen with the lawsuit given Brown's comments.Greco said she could not comment on the university's position since the litigation is pending. Attempts to reach Clements were unsuccessful.

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tbesecker@timesshamrock.com; 570-348-9137;

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