A former staffing firm owner in Maryland pleaded guilty Thursday over failing to pay employment taxes withheld from employees’ wages and to wire fraud in connection to a scheme to defraud, the US Department of Justice reported. The activity result in a loss of nearly $1.2 million, mostly to the government.

The former owner, Crystal Powell-Jones of Laurel, Maryland, operated JAG Professional Resources from August 2012 to October 2017, according to the department. The firm provided hourly labor to municipal governments and agencies.

JAG Professional Resources paid wages totaling nearly $3.9 million from January 2014 to October 2016, but the defendant did not pay employment taxes to the IRS, according to the department. The defendant also failed to timely pay state unemployment and workers’ compensation owed.

The Justice Department noted the defendant did not maintain reliable business records and JAG employees often received incorrect payment. The company also released W-2 forms to employees despite taxes not being paid.

In addition, the department reported Jones received factoring services and sold fraudulent invoices totaling more than $350,000 for services JAG purportedly provided to a city in Ohio. The invoices were sold from March 2016 to about May 2016 despite JAG’s relationship with the Ohio city ending in February 2016, according to the department, according to the department. The factoring company paid at least $347,993 to JAG as a result of fraudulent invoices.

Jones also provided false information to other lenders to buy a 2012 Ford Fusion in one instance and a house in another, according to the department. She also provided false information to lenders for loans to two other people.