Tara K. McGrath, U.S. Attorney | U.S. Attorney for the Southern District of California
Rafael Castro, a former employee of the Veterans Health Administration and the Internal Revenue Service, along with his wife Miriam Castro, admitted guilt in federal court to defrauding the Department of Veterans Affairs (VA) of over $130,000. The couple engaged in fraudulent activities from September 2018 to April 2024 by misrepresenting their eligibility for caregiver benefits under the VA's Caregiver Support Program.
Rafael Castro falsely claimed he required extensive assistance for daily tasks such as dressing and personal hygiene. This deception led to payments being made to his wife as a full-time caregiver while he was employed full-time with federal agencies. Despite holding positions at both the Veterans Health Administration until June 2023 and subsequently at the Internal Revenue Service until April 2024, Rafael repeatedly told VA representatives that he was unemployed.
In a 2023 interview, Rafael inaccurately stated that his last employment was in 2018 and maintained that his wife was providing full-time care. During this period, he received several promotions within his employment. Both Rafael and Miriam Castro acknowledged their roles in this prolonged scheme against the VA.
U.S. Attorney Tara McGrath emphasized the role of internal inspections in uncovering such frauds: “This case is an excellent example of the importance of internal inspections within government programs.” Special Agent Anthony Heddell highlighted accountability measures: “These guilty pleas demonstrate that those involved in defrauding VA, including government employees, will be held accountable.” Acting Special Agent Brandon Knarr reinforced commitment to law enforcement collaboration: “Violations of federal law...will not be tolerated.”
Sentencing for both defendants is set for April 25, 2025, before U.S. District Judge James E. Simmons Jr., with Assistant U.S. Attorney Edward Chang leading prosecution efforts.
For reporting fraud within VA programs, individuals are encouraged to contact the VA-OIG hotline or visit their website.
