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Castroneves Faces Tax Evasion Charges

Posted By Michael J Smith On October 3, 2008 @ 12:24 am In Indy | 2 Comments

ESPN [1] is reporting that two time Indy 500-winner and Indy Racing League driver Helio Castroneves is facing federal tax charges in Miami.

An tax evasion indictment was returned by a grand jury on Thursday. Castroneves is charged with consipracy and six counts of tax evasion. His sister, who is also his business manager, and his attorney are also being indicted.

In the charges, it is alleged that Castroneves, his sister, and attorney used a Panamanian shell corporation called Seven Promotions to fraudulently hide Castroneves’ income from the IRS.

According to the indictment, the driver received $6 million in income over three years, but his tax returns only reflected $1 million. The remaining money was diverted to a company in the Netherlands.

The defendants face up to 35 years in prison, if convicted, but it is highly unlikely that they will receive such a stiff penalty. Actual penalties are expected to much less.

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[1] ESPN: http://sports.espn.go.com/rpm/racing/indycar/news/story?id=3622661

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