Mansfield Man Charged in $300K Tax Scam in Texas
A Grimy Times investigation reveals that a 40-year-old man from Mansfield, Texas, has been charged with 33 counts of tax fraud, totaling hundreds of thousands of dollars in improperly paid claims.
John Anthony Castro, owner of Castro & Company LLC, a virtual tax preparation business with locations in Orlando, Florida, Mansfield, Texas, and Washington, D.C., devised a scheme to falsely create and submit false tax returns on behalf of unsuspecting taxpayers.
According to the indictment, Castro would promise a significantly higher refund than taxpayers could receive from other prepares and, on many occasions, offered to split the additional refund with taxpayers. However, in order to achieve these larger refunds, Castro generated false deductions without the taxpayer’s knowledge.
Castro’s scheme was brought to light in 2018 when an undercover agent, posing as a taxpayer, contacted Castro & Company for assistance. Castro refused to meet in person unless a $5,000 retainer was paid but offered to assist the undercover agent virtually.
During a recorded telephone conversation, Castro stated that he could project the amount of the tax refund the undercover agent would likely receive from another firm and then compare that figure with the refund that Castro would obtain. The IRS issued a refund of $6,007, and Castro received $2,999 for his services, with the agent receiving the remaining amount of $3,008.
Mr. Castro continued in a similar pattern with dozens of other taxpayers, resulting in hundreds of thousands of improperly paid claims. If convicted on all counts, Castro faces up to 99 years in federal prison – 3 years per count.
Related Federal Cases
- John M. Bales, Bank Fraud Conspiracy, Texas, 2023 · Washington
- Joel A. Sabean, Tax Evasion and Health Care Fraud, ME 2024 · Washington
- Jesus Carlos Silva, Immigration Mail and Wire Fraud, Texas 2024 · Washington
- Jesus Carlos Silva, Mail and Wire Fraud, Texas 2024 · Washington
- John Doe, Securities Fraud, California 2022 · Washington
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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