Albuquerque businessman David Castle, 75, stood before a federal judge yesterday, not as a respected jewelry dealer, but as a defendant in a sprawling tax evasion case that stretches back more than a decade. Castle was arraigned on a two-count indictment accusing him of obstructing the IRS and dodging more than $104,446.81 in federal taxes between December 2004 and January 2018. He pleaded not guilty and was released under pretrial supervision, pending a trial date yet to be set.
The charges stem from Castle’s operation of Gold and Silver Exchange (GSE), a well-known Albuquerque storefront dealing in jewelry sales, purchases, and repairs. According to the indictment filed February 14, 2018, Castle allegedly used nominee businesses and shell bank accounts to funnel GSE’s revenue, hiding income from federal authorities. The scheme allegedly relied on cash-heavy transactions, off-the-books employee payments, and the deliberate destruction or neglect of accurate financial records.
Count 1 of the indictment accuses Castle of corruptly obstructing the administration of the internal revenue laws by filing false federal income tax returns from December 2004 to May 2016. Prosecutors allege he cloaked personal income and business expenditures through third-party entities, making it nearly impossible for the IRS to trace the true financial footprint of GSE. These maneuvers were not accidental—they were calculated, the indictment claims, to shield revenue from federal scrutiny.
Count 2 is even more damning. It alleges that from December 2008 through December 2017, Castle attempted to evade taxes not just for recent years, but for a string of years going back to 1992—specifically 1992–1993, 1995–2002, 2005, and 2006—totaling approximately $104,446.81. He allegedly did so by concealing the source and location of his business income, stashing funds in nominee accounts, and either failing to file returns or submitting false and frivolous documents to the IRS.
If convicted on Count 1, Castle faces up to three years in federal prison. A conviction on Count 2 carries a maximum penalty of five years behind bars. The case was investigated by the IRS-Criminal Investigation’s Albuquerque office and is being prosecuted by Assistant U.S. Attorney Shaheen P. Torgoley. Acting U.S. Attorney James D. Tierney and IRS-CI Special Agent in Charge Ismael Nevarez, Jr. announced the charges.
This case underscores the long reach of federal tax enforcement, even when schemes unfold slowly over years. For now, David Castle remains free—but under the shadow of a growing legal storm. The indictment makes one thing clear: the government alleges this wasn’t poor bookkeeping. It was a deliberate, years-long effort to cheat the system. The courts will now decide if he pays for it.
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Key Facts
- State: New Mexico
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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