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2 Time Indy 500 Winner Helio Castroneves Indicted on Tax Evasion,Fraud

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  • 2 Time Indy 500 Winner Helio Castroneves Indicted on Tax Evasion,Fraud

    Indy Car champion Castroneves indicted on tax evasion, fraud Story Highlights
    The two-time Indy 500 winner was indicted on tax evasion and tax fraud charges
    He is accused of hiding millions from the IRS in offshore accounts
    Castroneves' sister and business manager are also facing charges




    Indy 500 (and Dancing With The Stars) champion Helio Castroneves is facing prison time for tax evasion charges.
    Getty Images




    MIAMI (AP) -- Two-time Indianapolis 500 winner and TV "Dancing With The Stars" champion Helio Castroneves was indicted Thursday on tax evasion and tax fraud charges, accused of using offshore accounts to hide millions of dollars in income from the Internal Revenue Service.

    Castroneves, 33, is charged with conspiracy and six counts of tax evasion for purportedly failing to report to the IRS about $5.5 million in income between 1999 and 2004, according to court documents. Each count carries a maximum five-year prison sentence.

    Also facing charges are Katiucia Castroneves, 35, the race car driver's sister and business manager, and attorney Alan R. Miller, 71, of Birmingham, Mich. All three are scheduled to make court appearances Friday and it wasn't immediately clear if they had hired defense lawyers. None were under arrest Thursday.

    "This case sends a clear message that the IRS is committed to vigorously enforcing the tax laws and stopping offshore tax evasion," said IRS Commissioner Doug Shulman.

    Castroneves, a native of Sao Paulo, Brazil, has won the Indianapolis 500 twice and is currently second in the IndyCar Series points standings. He and partner Julianne Hough won the 2007 "Dancing With The Stars" TV reality show competition on ABC.

    The indictment charges that Castroneves illegally concealed income from Penske Racing Inc. and the Brazilian firm Coimex International S.A. Neither company is charged with any wrongdoing.

    In Penske's case, prosecutors say Castroneves was to be paid $5 million in exchange for rights to use his name, likeness and image. The money was initially supposed to go to a Panamanian shell corporation, but then was diverted to a Dutch entity called Fintage Licensing.

    Fintage was set up as a "deferred royalty plan" in which U.S. tax payments can be delayed, which is only legal if Castroneves had no relationship or control over it. Prosecutors say he did have control and that false statements were made to Penske about the relationship.

    Coimex paid Castroneves $600,000 between 1999 through 2001 for sponsorship contracts, but he only paid taxes on about $50,000, prosecutors said.

    Katuicia Castroneves transferred some of the hidden money to a Swiss bank account she controlled with her brother, court documents show.

    Working telephone number for Castroneves and his sister could not be located Thursday. Miller did not immediately return a call to his office in Michigan.

    Castroneves recently signed on with "Entertainment Tonight" to be a correspondent for some episodes of this year's "Dancing With The Stars" show. He did a similar stint last year.

    He has raced for Team Penske since 2000, capturing Indy 500 victories in 2000 and 2001, becoming the youngest driver, 27, to win the famous race twice. Castroneves has recorded a total of 18 victories and 43 top-three finishes, according to Penske's Web site.

    Miami-Dade County records show that Castroneves, who is single, lives in a six-bedroom, six-bath home in Coral Gables valued at about $2.3 million.
    Hi, I'm RAH and I'm a Benaholic.-rah

  • #2
    Wow ... you'd think all that money would be enough for him
    <Reverend> IRC is just multiplayer notepad.
    I like your SNOOPY POSTER! - While you Wait quote.

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    • #3
      He'll be able to practise his fence climbing antics when he's locked-up.

      Still, nice to know I'm not the only one on Apolyton who follows the Indy Cars.

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