Texas man pleads guilty to employment tax fraud

HOUSTON - A Harris County resident has admitted to failing to report and pay employment taxes, announced U.S. Attorney Nicholas J. Ganjei.

Joseth “Joe” Limon owned and operated Platinum Employment Group Inc. which supplied laborers to businesses in the Houston area. From 2013 through 2018, Platinum failed to file employment tax returns and, according to its payroll records, more than $8.8 million in taxes.

After closing Platinum, he set up another labor-staffing company, Rockwell Staffing LLC, in the name of his then 18-year-old daughter. When he discovered the IRS was attempting to collect Rockwell’s employment taxes, he caused his daughter to submit an affidavit that falsely claimed Rockwell had been a victim of identity theft and had no employment-tax liability.

U.S. District Judge Lee H. Rosenthal will impose sentencing Aug. 6. At that time, Limon faces up to five years in prison and a possible fine of at least $250,000.

Limon was permitted to remain on bond pending sentencing.

IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorney Shirin Hakimzadeh and Trial Attorney Curtis Weidler of the Tax Division are prosecuting the case.