A would-be lawyer from Mansfield, Texas, has been convicted of 33 counts of tax fraud after a five-day bench trial. John Anthony Castro, 40, the owner of virtual tax preparation business Castro & Company, was taken into custody immediately after the verdict.
Castro was indicted in January and faced 33 counts of assisting in the preparation of a fraudulent return. He held himself out as an “international tax expert” and “federal practitioner,” despite repeatedly failing the bar exam and falsely claiming to be a graduate of West Point.
According to evidence presented in court, Castro successfully marketed to clients around the world, claiming to be an expert on certain tax issues related to Australian ex-pats, among other things. Between 2017 and 2019, he filed more than 1,900 tax returns on behalf of individuals from all over the world.
Castro promised his clients a significantly higher refund than they would receive from other preparers, claiming he knew how to identify and claim deductions that others did not. He would not share the tax return with clients before filing, but would instead simply inform them of the amount of the anticipated refund.
On many occasions, Castro filed tax returns on behalf of clients without their permission or knowledge. In other instances, he claimed deductions that had no basis in fact. For example, for one client, who made approximately $103,000 in income, Castro claimed over $90,000 in deductions related to unreimbursed employee expenses.
Castro claimed deductions based on extreme and unsupported legal theories, including deductions such as those for any expense related to preventing an illness qualified as an “impairment related work expense,” and the full value of one’s cell phone bill even when their employer provided them with a work phone.
According to trial testimony, in February 2018, an undercover IRS – CI agent contacted Castro for assistance. The agent asked to meet with Castro in person, but Castro’s office told him that in-person meetings required a $5,000 retainer. They spoke via email instead.
Congratulations to U.S. Attorney for the Northern District of Texas Leigha Simonton and IRS Criminal Investigation Special Agent in Charge Jenifer L. Piovesan for their tireless efforts in bringing Castro to justice.
RELATED: Houston Tax Man Fields Gets 9 Years for $3M Scheme
RELATED: Oliphant Sentenced for Fraudulent Tax Returns
Related Federal Cases
Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
