From the Marbles - NASCAR

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.

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21 Comments

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  1. Gators #1 Nuff Said
    1. Posted by Gators #1 Nuff Said Thu Sep 03, 2009 7:40 pm EDT

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    hope he has lots of soap on a rope those prison showers aint fun.
  2. TreeMom
    2. Posted by TreeMom Thu Sep 03, 2009 7:01 pm EDT

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    This whole thing is so sad, Helio is a really nice guy who took advice from other people.
    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....
  3. Spiderbandit88 - Read the Blogs, Not the Comments
    3. Posted by Spiderbandit88 - Read the Blogs, Not the Comments Thu Sep 03, 2009 9:08 pm EDT

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    He's going to jitterbug straight into jail...
    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?
  4. Carol
    4. Posted by Carol Thu Sep 03, 2009 3:19 pm EDT

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    Is that the voice of experience, Gators? LOL
    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.
  5. Dookie
    5. Posted by Dookie Thu Sep 03, 2009 9:14 pm EDT

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    Very unfortunate. There is no way to get out of this mess. Everyone knows you need to pay taxes the year of services rendered, ether he is pleading, I'm a dumb, dumb. and his attorney/CPA/Manager/Agent or whatever, really screwed him.
    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..
  6. Gators #1 Nuff Said
    6. Posted by Gators #1 Nuff Said Thu Sep 03, 2009 7:40 pm EDT

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    you cant beat the IRS just ask Wesly Snipes.
  7. Jim T.
    7. Posted by Jim T. Thu Sep 03, 2009 7:36 pm EDT

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    "Ignorance of the law is no excuse". At least thats what a judge told me when I was 18 years old, Poor as dirt, and pleading ignorant in his courtroom. No I wasn't pardoned. I paid my dues.
  8. art_tidesco
    8. Posted by art_tidesco Thu Sep 03, 2009 2:58 pm EDT

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    I would give Helio the benefit of the doubt and throw his advisors under the bus ! With a proviso that Helio pays all taxes owed with in 30 days :-)
  9. art_tidesco
    9. Posted by art_tidesco Thu Sep 03, 2009 2:58 pm EDT

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    On a happier note any Marbleheads going to 'dega at the end of the month ?
  10. Frevic
    10. Posted by Frevic Thu Sep 03, 2009 4:58 pm EDT

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    I pay my taxes, he should have paid his, bottom line------ GUILTY,
    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
  11. n88car
    11. Posted by n88car Thu Sep 03, 2009 7:32 pm EDT

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    PUT HIM IN PRISON !!! before he tries to move to NASCAR , like those other friggin open wheelers !!!
  12. Jet
    12. Posted by Jet Thu Sep 03, 2009 4:56 pm EDT

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    Carol - You're right $15 bucks or $50mil the tax man's gonna get you.
    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.
  13. brinirmess
    13. Posted by brinirmess Thu Sep 03, 2009 3:13 pm EDT

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    Guilty
  14. razz
    14. Posted by razz Thu Sep 03, 2009 8:31 pm EDT

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    Helio is going down, next stop crossbars hotel. He will soon be learning the steps to the Al Capone shuffle tax evasion style.
  15. eatfish97
    15. Posted by eatfish97 Thu Sep 03, 2009 4:00 pm EDT

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    I bet he dosen't think it was worth it now eatfish.97. http://stores.ebay.com/eatfish97landoflures
  16. Rudy88
    16. Posted by Rudy88 Thu Sep 03, 2009 4:16 pm EDT

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    razz - I thought it was "the gray bar hotel".
  17. penske2car
    17. Posted by penske2car Thu Sep 03, 2009 4:35 pm EDT

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    Being a previous fan of open wheel before it got destroyed by the split, i have been watching this thing with some interest (as a Penske fan, but NOT a Helio fan) and i think its a disgrace what this guy has tried to do. You come to this country, and reap the benefits of a U.S. based racing series, and then try to cheat your way out of paying U.S. taxes? i hope he gets jail time, his visa pulled, and fined. No one likes paying taxes. But we pay them. IRL suxx. NASCAR rules.
  18. Carol
    18. Posted by Carol Thu Sep 03, 2009 3:19 pm EDT

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    Rudy, it was. But "bars is bars". #16 has a point. Getting tired of seeing my country raped by various and sundry.
  19. NostraChronus
    19. Posted by NostraChronus Thu Sep 03, 2009 8:06 pm EDT

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    Helio shouldn't totally hang his head; sure he can get some great investment advice from Bernie Madoff in the pen.
  20. James H
    20. Posted by James H Thu Sep 03, 2009 4:27 pm EDT

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    I bet he will pay the i.r.s then go to monaco.
  21. razz
    21. Posted by razz Thu Sep 03, 2009 8:31 pm EDT

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    #15 Rudy - This is a little used phrase that means basically the same thing as the gray bar hotel, behind bars.

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