Rafael Castro, a former U.S. Navy veteran and employee of the Veterans Health Administration and Internal Revenue Service, along with his wife, Miriam Castro, admitted guilt in federal court for defrauding the Department of Veterans Affairs (VA) of over $130,000. The couple's fraudulent activities took place between September 2018 and April 2024.
The Castros manipulated the Caregiver Support Program by falsely claiming caregiver benefits meant for injured veterans. Rafael Castro confessed to fabricating his need for high-level assistance with daily tasks such as dressing and personal hygiene. This deception led to Miriam Castro receiving payments equivalent to a full-time home health aide’s salary.
Despite working full-time as a federal employee from July 2015 until April 2024, Rafael Castro misled VA representatives multiple times by stating he was unemployed. In one instance during a 2023 interview, he claimed his last employment was in 2018 while asserting that his wife served as his full-time caregiver. Throughout this period, he received several promotions within his job roles.
U.S. Attorney Tara McGrath emphasized the significance of internal inspections within government programs in uncovering such fraud cases: “Without the intervention from the Inspector General’s Office, this fraud might have continued indefinitely.”
Special Agent Anthony Heddell from the Department of Veterans Affairs Office of Inspector General stated: “These guilty pleas demonstrate that those involved in defrauding VA, including government employees, will be held accountable.” Acting Special Agent Brandon Knarr highlighted that violations by IRS employees would face prosecution: “TIGTA will continue to work closely with the United States Attorney’s Office and our law enforcement partners to identify, investigate and hold those individuals responsible for their illegal activities.”
Sentencing is set for April 25, 2025, before U.S. District Judge James E. Simmons Jr., with Assistant U.S. Attorney Edward Chang prosecuting the case.
For reporting fraud in VA programs, contact the VA-OIG hotline at 1-800-488-8244 or visit https://www.va.gov/oig/hotline/.