Mon Apr 13, 2009 3:26 pm EDT
Indy Car champ and Dancing With The Stars hoofer Helio Castroneves is in Miami right now, but it's a good bet he's not enjoying the pleasures of South Beach. No, at the moment a jury is deciding on Castroneves' fate in a major tax conspiracy trial. Castroneves faces, at worst, millions in fines and back taxes and decades in prison. Yes, this is serious.
The Miami Herald has a fine breakdown of the case. At issue is whether Castroneves, the former Indy 500 champion, dodged taxes on $5.5 million. He received more than $500,000 fromm a Brazilian trading company, Coimex International, just before he broke huge with Penske. Castroneves also received $5 million in a 1999 licensing deal with Penske.
To date, according to the IRS, Castroneves has paid only $50,000in taxes, which, according to my meager math skills, is less than 1 percent of the total of his revenue. I'm fairly sure Castroneves isn't in that joyous 1-percent tax bracket, which means he owes a bit more: $2.3 million, to be exact, according to prosecutors.
The 12 federal jurors deciding the case have been deliberating since Friday in the case, which includes Castroneves' sister/manager Katiucia and his attorney Alan R. Miller. All three are charged with conspiracy, and if they're convicted of any charges in the seven-count indictment, are looking at five years in jail apiece.
Now, in Castroneves' defense, lawyers say that the Coimex money went to Castroneves' father, and the Penske money went to a Dutch annuity account, one on which Castroneves will begin paying taxes next month, when he starts reciving that money. (Jimmie Johnson also testified as a character witness for Miller.)
Not so fast, Helio, prosecutors say; taxes should have been withheld in 2000, 2001 and 2002, and that Castroneves intended to retire to a tax haven like Monaco, and -- and your eyes are starting to glaze over, aren't they? All right, bottom line: he's looking at the possibility of a whole lot of trouble. And we'll know soon enough if it catches up to him.
From the Marbles is a NASCAR blog edited by Jay Busbee. Email him, and follow him on Twitter.

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21 Comments
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And so many in Show Business which the Sport Celebrities are ,too, do not get involved with all the details.
They trust, right or wrong other people they pay to do the numbers right and keep them out of trouble.
Don't forget Wille Nelson and Red Foxx as an example.....
I hope the jury finds him not guilty.
God knows, he's not exactly a Bernie Madoff on this one...... fine him if that what it calls for, but let's not
Martha Stewart him....
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Nevertheless I'm gonna miss this guy. I can't say he's wrong or right, but his personality is just magnetic. He's awesome. Just one of those deals that went wrong.
Unfortunately things aren't looking to bright for him and that sucks, he's a great driver.
Hey, is there a Folsom 500?
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And now Martha Stewart is a verb? With all due respect to Willie and Redd, Helio is a lot younger and should be a lot less trusting if he's been keeping his eyes open for the last couple decades. I agree that he should not be jailed, but he should pay up. I don't understand why it seems lately that the richandfamous all feel they do not need to pay their taxes. I had the IRS offer to take my house over less than $15.00 one time.
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Or they conspired to do this, because in Helio's mind the money wasn't going to him but his father and family, so why should he have to pay taxes, right..
I like the guy, but it doesn't look good...he needs a dancing with the stars fan sitting on the jury, Fo sure..
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don't drop your soap, or you will be dancing with new stars
Hey Jim, Carol, ART, Gator--now Gator, Carol broke it off in ya, lol
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Art - I agree with you. He trusted his advisors, they should go to jail and Helio pays the the tax and fines. I like Helio and hope he's not guilty.
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1 - 21 of 21