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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of Texas

Tuesday, January 30, 2018

Another Convicted in “On the Rox” Tax Conspiracy

HOUSTON – A local bar owner has entered a guilty plea to conspiring with others to defraud the United States by failing to pay taxes on income he received from vending machines located in the bars he owned, announced U.S. Attorney Ryan K. Patrick.


In the plea agreement filed in the record of the case, Thomas E. Johnson admitted he had partial ownership of multiple bars in the Houston area that operated under the name “On the Rox.” Johnson conspired with others to conceal the cash income from vending machines located in the bars from the IRS.


Johnson admitted he failed to report a total of $463,277 in income for tax years 2010, 2011 and 2012. His failure to pay taxes on this income resulted in a tax loss to the United States of $148,338.


Two others have been convicted in relation to the scam at “On the Rox.” Jerome Rivera pleaded guilty last week, while Mathew J. Mitchell entered his plea Dec. 8, 2017.


Johnson’s sentencing has been set for May 17, 2018, before Chief U.S. District Judge Lee H. Rosenthal. At that time, he faces up to five years in federal prison and a possible $250,000 maximum fine. Johnson was permitted to remain on bond pending that hearing.


IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.

Updated January 30, 2018