Source: United States Attorneys General
Headline: Albuquerque Businessman Arraigned on Federal Charges Alleging Obstruction of IRS and Tax Evasion
ALBUQUERQUE – David Castle, 75, of Albuquerque, N.M., was arraigned yesterday in federal court on an indictment charging him with obstructing the administration of the internal revenue laws and tax evasion. Castle entered a not guilty plea to the indictment and was released on pretrial supervision and other conditions of release pending trial, which has yet to be scheduled.
The charges against Castle, which arise out of an alleged scheme to evade and defeat the assessment and payment of taxes owed by Castle to the United States from Dec. 2004 through Jan. 2018, were announced by Acting U.S. Attorney James D. Tierney and Special Agent in Charge Ismael Nevarez, Jr., of the Phoenix Field Division of IRS-Criminal Investigation.
According to the indictment, Castle is the owner and operator of the Gold and Silver Exchange (GSE), an Albuquerque-based store that focuses on the sale, purchase and repair of jewelry. The two-count indictment, which was filed on Feb. 14, 2018, charges Castle with corruptly obstructing and impeding the administration of the internal revenue laws and tax evasion. The indictment generally alleges that Castle committed these offenses for the purpose of concealing income generated by GSE from the IRS and to evade the payment of federal personal and business taxes.
Count 1 of the indictment charges Castle with corruptly obstructing and impeding the administration of the internal revenue laws by filing false federal income tax returns between Dec. 2004 and May 2016. According to the indictment, Castle used several nominee businesses to conduct GSE’s financial operations allegedly to hide income generated by GSE from the IRS. Castle allegedly executed this corrupt scheme by using bank accounts belonging to the nominee businesses; concealing personal income and expenditures; engaging in cash transactions; and employing and paying GSE personnel in cash that could not easily be connected to GSE’s business operations. The indictment further alleges that Castle deliberately failed to keep accurate business records reflecting GSE’s income and expenses.
Count 2 of the indictment alleges that from Dec. 2008 through Dec. 2017, Castle attempted to evade federal taxes for the years 1992-1993, 1995-2002, 2005, and 2006 in the approximate amount of $104,446.81. Castle allegedly committed this crime by concealing from the IRS the nature and location of his business revenue; placing funds in bank accounts belonging to nominee businesses; emphasizing cash operations in order to place the revenue beyond the reach of the legal process; and by failing to file personal and business income tax returns or by filing false or frivolous tax returns.
If convicted of the charge in Count 1 of the indictment, Castle faces a maximum statutory penalty of three years of imprisonment. If convicted of the charge in Count 2 of the indictment, Castle faces a maximum penalty of five years of imprisonment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of IRS – Criminal Investigation and is being prosecuted by Assistant U.S. Shaheen P. Torgoley.