Texas man sentenced for employment tax fraud

HOUSTON – A Harris County resident has been sentenced for failing to report and pay employment taxes, announced U.S. Attorney Nicholas J. Ganjei.

Joseth “Joe” Limon pleaded guilty May 27.

U.S. District Judge Lee H. Rosenthal has now ordered Limon to serve 36 months in federal prison to be immediately followed by three years of supervised release. During the hearing, Judge Rosenthal took issue with Limon’s claim he was a hardworking businessman who had never asked for a handout from anyone, noting that he just took from the United States. Limon is also required to pay approximately $8.7 million in restitution.

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 $8.7 million in taxes.

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

Limon was permitted to remain on bond and voluntarily surrender to a Federal Bureau of Prisons facility to be determined in the near future.

IRS Criminal Investigation conducted the investigation.

Assistant U.S. Attorney Shirin Hakimzadeh and Trial Attorney Curtis Weidler of the Tax Division prosecuted the case.