FOR IMMEDIATE RELEASE:
WEDNESDAY - April 30, 2008
CFO CHARGED WITH CONSPIRACY TO DEFRAUD THE UNITED STATES
RALEIGH - United States Attorney George E.B. Holding announced that yesterday a federal Criminal Information was filed charging James O. McLamb, Jr., 41, of Raleigh, North Carolina, Chief Financial Officer/Chief Operating Officer (CFO/COO), of The Castleton Group (“Castleton”), with tax conspiracy, in violation of Title 18, United States Code, Section 371.
From January, 2005, to January, 2008, MCLAMB, and others, collected and withheld federal taxes from individual employers on behalf of employees, then prepared false and fraudulent documents to mislead the Internal Revenue Service (IRS), thereby causing Castleton to unlawfully retain these federal taxes instead of remitting them to the IRS. Specifically, on numerous occasions (January 31, 2007; April 30, 2007; July 31, 2007; and October 31, 2007) MCLAMB filed or caused to be filed false IRS Forms 941 in the named of Castleton Affiliates LLC also known as The Castleton Group, Inc.
Mr. Holding said of the situation, “The tax laws must be applied equally to everyone. Most Americans pay their taxes and file their returns timely and honestly. When a corporation willfully violates our tax laws, the corporation and the responsible officer must be held accountable.”
Internal Revenue Service Special Agent in Charge Charles E. Hunter states, "The mission of the IRS is to apply the tax laws with integrity and fairness to all. This means all taxpayers should pay their fair share. Large corporations and their officers are not above this."
The maximum penalties MCLAMB faces for the charge are up to 5 years imprisonment, 3 years supervised release and a $250,000 fine.
Investigation of the case was conducted by the Internal Revenue Service. Assistant United States Attorney Gaston Williams served as prosecutor for the government.
News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.