A Texas man has pleaded guilty to a major tax fraud case that involved failing to report and pay over $8.8 million in employment taxes over several years. The plea was entered before Magistrate Judge Richard W. Bennett in the Southern District of Texas and is still awaiting final approval by a U.S. district court judge.
Who is Joseth “Joe” Limon?
Joseth “Joe” Limon is a resident of Harris County, Texas. He was the owner and operator of Platinum Employment Group Inc., a labor staffing business that supplied workers to companies in the Houston area. Between 2013 and 2018, Limon’s company failed to file required employment-tax returns and did not pay over $8.8 million in taxes that had been withheld from workers’ wages.
Why Employment Taxes Matter
When companies withhold taxes from employees’ paychecks, they are supposed to send that money to the federal government. These taxes help fund key programs like Social Security and Medicare, and they also make up a large portion of the total federal income tax collected every year. Not paying this money harms government programs and is considered a serious offense.
Creating a New Company to Avoid Taxes
After shutting down Platinum Employment Group, Limon tried to avoid detection by setting up a new business called Rockwell Staffing LLC in the name of his daughter, who was just 18 at the time. When the IRS began investigating Rockwell for unpaid taxes, Limon had his daughter falsely claim to the IRS that the company had been a victim of identity theft and was not responsible for any tax debt.
Legal Consequences for Limon
Limon is now awaiting sentencing, which is scheduled for August 6. He could face up to five years in prison, along with supervised release, restitution, and financial penalties. A federal judge will make the final decision on his sentence based on legal guidelines and the seriousness of the crime.
Who Is Handling the Case?
The case is being led by the IRS Criminal Investigation unit. The prosecution is being handled by Trial Attorney Curtis Weidler of the Justice Department’s Tax Division and Assistant U.S. Attorney Shirin Hakimzadeh for the Southern District of Texas. The announcement was made by Acting Deputy Assistant Attorney General Karen E. Kelly and U.S. Attorney Nicholas J. Ganjei.
This case shows how seriously the federal government takes employment tax fraud. Joseth Limon’s attempt to avoid millions in taxes and shift the blame to his daughter was not only illegal but also harmful to programs that millions of Americans rely on. His guilty plea is a reminder that business owners must follow the law when it comes to tax responsibilities, or they could face serious consequences.
