Mansfield’s John Anthony Castro, 40, has been hit with a stunning conviction: 33 counts of tax fraud. The owner of virtual tax preparation firm Castro & Company was caught inflating client tax returns to the tune of millions.
Castro was indicted in January and faced Senior U.S. District Judge Terry R Means for five days before being found guilty on all counts. Now, the greedy tax preparer is staring down a long stretch behind bars.
Jenifer L. Piovesan, Special Agent in Charge of IRS Criminal Investigation, Newark Field Office, called Castro’s actions ‘greedy’ and warned that he now faces serious prison time as a convicted felon.
According to court evidence, Castro, who had graduated law school but failed the bar exam multiple times, posed as an ‘international tax expert.’ He promised clients around the world sky-high refunds, claiming expertise in Australian ex-pats’ tax issues and other international matters. Between 2017 and 2019, he filed more than 1,900 fraudulent returns.
Castro’s scheme was devious: he claimed deductions based on extreme legal theories with no factual basis, including expenses for preventing illness, commuting, mortgage and utilities, dry-cleaning, and cell phone bills. One client saw over $90,000 in deductions claimed from an income of just $103,000.
His fraud even extended to using a fake claim that he was a West Point graduate. The IRS caught on when an undercover agent asked for help with a return, only to be met with a $5,000 retainer fee before they could even meet in person.
Related Federal Cases
Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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