HOUSTON — This is an official press release from the U.S. Department of Justice (National Fraud Enforcement Division), published as received.
HOUSTON – A 40-year-old Houston woman has pleaded guilty to tax offenses involving businesses and the preparation of false tax returns.
Levi Casildo Castro admitted to willful failure to collect and pay over tax and assisting in the preparation of false tax returns.
Castro operated LC Home Remodeling and Maid Service and A&M Home Remodeling and Cleaning. Through those businesses, she withheld federal income, Social Security, and Medicare taxes from employees’ wages but failed to pay the money to the U.S. Treasury.
Castro also worked as a paid tax preparer despite not having authorization to do so. She prepared tax returns for clients but falsely indicated the clients had prepared the returns themselves.
Those returns included false information about wages, federal tax withholdings and Social Security and Medicare taxes. Castro inflated the amounts to increase the earned income tax credits her clients could receive.
Castro admitted her actions caused approximately $400,000 in losses to the U.S. Treasury.
U.S. District Judge Lee H. Rosenthal accepted the plea and set sentencing for Dec. 16. At that time, Castro faces up to eight years in federal prison as well as a possible $110,000 maximum fine.
Previously released on bond, Castro was permitted to remain on bond pending sentencing.
The IRS conducted the investigation. Assistant U.S. Attorney Adam Laurence Goldman prosecuted the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division which is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within federal benefit programs.
