RALEIGH - James O. McLamb, Jr., former finance chief for the defunct Castleton Group, has lost his license to work as an accountant and filed for bankruptcy.

The N.C. State Board of Certified Public Accountant Examiners revoked McLamb's license last week, according to a notification that the board released Monday. Losing the authority to practice in this state makes it unlikely he will ever be able to work as a CPA.

In June, McLamb pleaded guilty to conspiring to defraud the U.S. government while working as the chief financial officer at Castleton. The Raleigh company managed payroll and benefits for more than 100 small businesses.

McLamb admitted falsifying IRS forms and failing to pay about $8 million in taxes that Castleton was supposed to have sent on behalf of clients. Castleton filed for bankruptcy in December, leaving clients to struggle with questions about health-care coverage and other issues.

McLamb was the first Castleton executive caught by federal prosecutors in a tax probe. His plea was part of a negotiated agreement; he faces five years in prison, a $250,000 fine and three years of supervised release. Sentencing is scheduled for September.

McLamb filed for bankruptcy last month, according to documents in U.S. Bankruptcy Court for the Eastern District of North Carolina. He listed assets of $931,660 and liabilities of $8.1 million.

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