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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Michigan

Tuesday, September 9, 2014

Fenton Man Accused Of Filing False Returns

Kleppe Houston, of Fenton, Michigan, was arraigned today on an indictment charging him with five counts of filing false tax returns, United States Attorney Barbara L. McQuade announced today.

United States Attorney McQuade was joined in the announcement by Jarod Koopman Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division.

According to the indictment, Houston owner of Co-HR, LLC, a human resource management firm that was based in Pontiac, Michigan, prepared and filed false tax returns for businesses.  Co-HR, LLC provided payroll services to Health Management Systems of America, Binson’s Hearing Aid Services and Northwood Provider Network Services. Houston prepared and filed five Employers’ Quarterly Federal Tax Returns, for these employers, falsely reporting that more than $393,381 in payroll taxes had been remitted with the returns.  Houston knew, but his clients did not, that the amount remitted with each return was substantially less than reported.

“Our tax system depends on the honest cooperation and integrity of every citizen and business owner, said Koopman.  “Employers that engage payroll service companies, and their employees whose wages have amounts withheld for payroll tax purposes, have every right to expect that those funds will be used for the payment of their taxes.  The government has the same expectation.”

The case was investigated by special agents of the IRS Criminal Investigation. 

Updated March 19, 2015