A Texas man, Joseth “Joe” Limon, has admitted in court that he failed to pay over millions of dollars in employment taxes that his company took from its workers’ paychecks. This crime affects not only the government but also the services that Americans depend on. The case was brought before Magistrate Judge Richard W. Bennett in the Southern District of Texas and still needs final approval by a U.S. district court judge.
What Happened?
Joseth “Joe” Limon, a resident of Harris County, ran a company called Platinum Employment Group Inc. This company provided workers to businesses around Houston. Like most employers, his company was supposed to take out taxes from workers’ pay and send that money to the government. These taxes help fund important programs like Social Security and Medicare.
However, from 2013 to 2018, Limon’s company didn’t file the proper tax forms and didn’t pay more than $8.8 million in employment taxes. This means the company collected money from its workers but didn’t pass it on to the government as required. This is not only unfair to the workers but also harmful to government programs that rely on those funds.
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The money that employers withhold from paychecks makes up a big part of the federal budget. It helps keep essential programs running, especially for older people and those who need medical care. Failing to pay these taxes is a serious issue.
Attempts to Cover It Up
When Platinum Employment Group shut down, Limon didn’t stop his business activities. Instead, he opened a new labor staffing company called Rockwell Staffing LLC. What made this more troubling was that he put the company in the name of his 18-year-old daughter.
Later, the IRS (Internal Revenue Service) tried to collect unpaid employment taxes from this new company. In response, Limon had his daughter submit a false statement to the IRS. The affidavit claimed that Rockwell Staffing was the victim of identity theft and wasn’t responsible for any tax debts. This statement was not true and was meant to mislead the IRS.
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This shows that Limon went to great lengths to avoid paying what his companies owed. He not only failed to follow tax laws but also tried to shift blame and hide the truth using his own daughter.
What’s Next in the Case?
Limon has pleaded guilty to the crime. His sentencing is set for August 6. He faces up to five years in prison, as well as supervised release, fines, and being ordered to repay the unpaid taxes. The final sentence will be decided by a U.S. district court judge, who will look at the U.S. Sentencing Guidelines and other legal factors.
The announcement came from Karen E. Kelly, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, and Nicholas J. Ganjei, U.S. Attorney for the Southern District of Texas. The IRS Criminal Investigation division is handling the investigation.
Trial Attorney Curtis Weidler of the Justice Department’s Tax Division and Assistant U.S. Attorney Shirin Hakimzadeh are leading the prosecution.
