Two-time Indianapolis 500 champion Helio Castroneves is expected to appear in federal court today after he was indicted on multiple counts of tax evasion Thursday in Miami.
Castroneves won the 500 in 2001 and ‘02. He became a national celebrity last year when he won television’s “Dancing With the Stars” competition.
Castroneves, a 33-year-old Brazilian who owns a home in South Florida, is charged with failing to report $5.5 million in income to the Internal Revenue Service from 1999 to 2002. Also named in the indictment were his sister Kati, who serves as his manager, and attorney Alan R. Miller.
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.
“This case sends a clear message that the IRS is committed to vigorously enforcing the tax laws and stopping offshore tax evasion,” IRS commissioner Doug Shulman said.
“We knew about it, obviously, in advance,” said Bud Denker, the executive vice president of Penske Racing.
“As a result of that, we will get (the indictment), review it and move forward.”
Indy Racing League president Terry Angstadt reacted with surprise to the indictment. “We were clearly a little caught off guard to say the least, but he’s certainly innocent until proven guilty,” he said.
| 
|