Dallas, Texas, December 3, 2025
Heaven Marie Diaz, owner of Pursuit of Excellence, received a 97-month prison sentence for failing to remit over $3 million in payroll taxes. The court ordered restitution of $799,033.47. Diaz withheld payroll taxes from her employees between 2015 and 2017, using the funds for personal expenses instead of remitting them to the IRS. This case serves as a reminder of the severe penalties for non-compliance with federal tax laws.
Dallas Staffing Firm Owner Sentenced for Withholding $3 Million in Payroll Taxes
Dallas, Texas – Heaven Marie Diaz, 57, owner and CEO of Pursuit of Excellence, a Dallas-based staffing company, was sentenced to 97 months in federal prison for failing to remit over $3 million in payroll taxes to the Internal Revenue Service (IRS). The sentencing took place on December 2, 2025, before Senior U.S. District Judge David Godbey. In addition to the prison term, Diaz was ordered to pay $799,033.47 in restitution.
Details of the Case
Between 2015 and 2017, Diaz withheld payroll taxes from her employees’ paychecks but did not forward these funds to the IRS as required by law. Instead, she retained the money in her company’s bank accounts, using it to cover personal expenses, including international travel, luxury goods, and a $10,000 monthly rent on a residence in Dallas’s Preston Hollow neighborhood. Despite repeated warnings from former employees and her accountant about her obligation to pay employment taxes, Diaz continued to withhold the taxes and misused the funds for personal gain.
Legal Proceedings
In June 2025, Diaz was convicted by a jury on five counts of failing to pay over trust fund taxes. The conviction followed a trial where evidence demonstrated her deliberate actions to withhold and misuse payroll taxes. The substantial prison sentence reflects the seriousness of the offense and the collaborative investigative work by Assistant U.S. Attorneys and IRS Criminal Investigation agents.
Background Context
Employers are legally obligated to withhold federal income taxes, Social Security, and Medicare taxes from their employees’ wages and to remit these amounts to the IRS. Failing to do so can result in severe penalties, including substantial fines and imprisonment. This case highlights the critical importance of compliance with federal tax laws and the consequences of neglecting these responsibilities.
Related Cases
Similar cases have occurred in Texas, underscoring the severity of such offenses. For instance, in 2017, Richard Floyd Tatum Jr., owner of Associated Marine & Industrial Staffing Inc., was sentenced to 36 months in prison for failing to pay over employment taxes, resulting in a tax loss of over $18 million.
Conclusion
The sentencing of Heaven Marie Diaz serves as a stern reminder of the legal obligations employers have regarding payroll taxes. It underscores the importance of adhering to tax laws to maintain trust and integrity within the business community.
FAQ
- What was Heaven Marie Diaz convicted of?
- Heaven Marie Diaz was convicted of failing to pay over trust fund taxes, amounting to over $3 million, which she withheld from her employees’ paychecks but did not remit to the IRS.
- What was the outcome of the sentencing?
- Diaz was sentenced to 97 months in federal prison and ordered to pay $799,033.47 in restitution.
- What did Diaz do with the withheld payroll taxes?
- Diaz used the withheld payroll taxes to cover personal expenses, including international travel, luxury goods, and a $10,000 monthly rent on a residence in Dallas’s Preston Hollow neighborhood.
- What are the legal obligations of employers regarding payroll taxes?
- Employers are legally obligated to withhold federal income taxes, Social Security, and Medicare taxes from their employees’ wages and to remit these amounts to the IRS. Failing to do so can result in severe penalties, including substantial fines and imprisonment.
- Have there been similar cases in Texas?
- Yes, similar cases have occurred in Texas. For example, in 2017, Richard Floyd Tatum Jr., owner of Associated Marine & Industrial Staffing Inc., was sentenced to 36 months in prison for failing to pay over employment taxes, resulting in a tax loss of over $18 million.
Key Features of the Case
| Feature | Details |
|---|---|
| Defendant | Heaven Marie Diaz, 57, owner and CEO of Pursuit of Excellence, a Dallas-based staffing company. |
| Offense | Withheld over $3 million in payroll taxes from employees’ paychecks and failed to remit them to the IRS between 2015 and 2017. |
| Sentence | 97 months in federal prison and $799,033.47 in restitution. |
| Misuse of Funds | Used withheld payroll taxes for personal expenses, including international travel, luxury goods, and a $10,000 monthly rent on a residence in Dallas’s Preston Hollow neighborhood. |
| Legal Obligation | Employers are required to withhold federal income taxes, Social Security, and Medicare taxes from employees’ wages and remit them to the IRS. Failure to do so can result in severe penalties, including substantial fines and imprisonment. |
| Related Case | In 2017, Richard Floyd Tatum Jr., owner of Associated Marine & Industrial Staffing Inc., was sentenced to 36 months in prison for failing to pay over employment taxes, resulting in a tax loss of over $18 million. |
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