PLANO, Texas — Kenneth Edward Jackson, the mastermind behind Employer Tools and Solutions (ETS) in Denton County, Texas, has been sentenced to federal prison for a brazen scheme that fleeced clients and the IRS out of hundreds of thousands. The 47-year-old Decatur native was caught embezzling funds meant for payroll taxes, instead using them for personal gain.
Jackson pleaded guilty to false statements on income tax returns, facing a severe penalty of 36 months in federal prison. On May 1, 2024, U.S. District Judge Robert W. Schroeder, III, imposed the sentence and ordered Jackson to pay $484,187.57 in restitution to the IRS and his small-business clients.
Details emerged that from 2017 to 2019, Jackson, ETS president and owner, misappropriated funds intended for employment taxes. Instead of forwarding these funds to the IRS, he pocketed them, using them to pay off his home and fund a lavish lifestyle, even splurging on a European vacation.
“Jackson’s actions shattered the trust placed in him as a payroll service provider,” U.S. Attorney Damien M. Diggs commented. “His greed turned fiduciary duties into a fraud that victimized both clients and the government.”
Christopher J. Altemus Jr., special agent in charge of the IRS Criminal Investigation’s Dallas Field Office, emphasized the broader impact of Jackson’s crimes. “The failure to pay employment taxes has dire consequences for our nation’s finances and social security systems,” he said.
This case was a collaborative effort between the Internal Revenue Service – Criminal Investigations and the Frisco Police Department, with Assistant U.S. Attorney Sean J. Taylor leading the prosecution.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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