Michigan business owner pleads guilty in $1.7 million tax fraud scheme

A Michigan business owner has pleaded guilty to conspiring to defraud the federal government for more than a decade. 

According to court documents, Roxanne L. Huneycutt, of Fenton, owned and operated several full-service staffing companies since 2012. The companies recruited temporary workers for manual labor, office administration and other tasks for clients, and the companies were responsible for payroll and employment taxes, according to federal prosecutors. 

Between 2012 and 2024, the staffing companies did not pay approximately $1.7 million in employment taxes to the IRS, according to authorities. 

The IRS assessed penalties against Huneycutt in 2015 for failing to pay certain employment taxes, but she did not pay the penalties or comply with the law, prosecutors say. 

To avoid detection, federal authorities allege Huneycutt changed the names and locations of the companies and submitted paperwork to Michigan indicating she was not an owner of the companies. 

Authorities allege Huneycutt spent proceeds from the companies on personal expenses, like clothing, housing, home decoration and travel. 

Huneycutt pleaded guilty to one count of conspiracy to defraud the U.S. She is scheduled for sentencing and faces up to five years in prison. 

A co-conspirator previously pleaded guilty to one count of conspiracy to defraud the U.S. and is awaiting sentencing, federal prosecutors said.