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EMPLOYMENT TAX FRAUD ROCKS TEXAS
A former high-ranking executive from an Austin-based company has been caught with his hands deep in the till, as John Herzer, the former Chief Financial Officer of AXO Staff Leasing, pleaded guilty to willfully failing to pay over employment taxes to the Internal Revenue Service (IRS).
According to court documents, Herzer handled all financial matters for AXO and was responsible for collecting and paying employment taxes to the IRS from 2010 to 2016. However, instead of using these funds for their intended purpose, Herzer used more than $4.9 million to pay his own personal expenses and transferred millions of dollars to his own bank accounts.
The total tax loss to the IRS as a result of Herzer’s actions? A staggering $13 million. If convicted, Herzer faces a maximum sentence of five years in prison, as well as a term of supervised release, restitution, and monetary penalties.
Herzer’s case was investigated by special agents of IRS Criminal Investigation and prosecuted by Tax Division Trial Attorneys Robert Kemins and David Zisserson. The U.S. Attorney’s Office for the Western District of Texas (Austin Division) also provided substantial assistance in the case.
While the exact sentencing date has yet to be scheduled, one thing is clear: Herzer’s actions will have serious consequences. As a former CFO, he was entrusted with the financial well-being of his company and its employees. Instead, he chose to line his own pockets with cash meant for the IRS.
As Grimy Times continues to expose the dark underbelly of corporate America, it’s clear that employment tax fraud is a serious offense that will not be taken lightly. We will continue to follow this case closely and provide updates as more information becomes available.
The Tax Division’s enforcement efforts can be found on their website.
Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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