Wednesday, October 15, 2008

Erik Tomas' Raceline Radio Network Newsletter... Oct. 15, 2008

From Erik Tomas, Raceline Radio (www.raceline.ca)

Wow.

Last time I spoke with Helio Castroneves, he had just had his IRL win at Belle Isles Detroit taken away and handed to Justin Wilson because Helio was charged with blocking.

The likeable Brazilian, with a bright and enthusiastic personality, has been charged again… with something a LOT more serious.

And if he’s found guilty, he could serve jail time. He might even be deported!

Castroneves has been charged with 6 counts of tax evasion on 5.5 million dollars in income the Internal Revenue Service claims went unreported between 1999 and 2004.

Helio was led into a Miami Florida court room crying. They had him in handcuffs and leg chains. Seems a little severe considering that’s the same way murderers are fettered, and Helio is not a flight risk.

He entered a plea of not guilty to these very serious allegations. How serious? Bail was set at 10 million dollars, 10 million! It was posted and Castroneves was released after he surrendered his passport and was ordered not to leave the United States.

He told reporters he will “win this race too!”. He then left for Road Atlanta where he and his Penske IRL team mate Ryan Briscoe won the LMP-2 division in the 10 hour endurance race, so this tax mess obviously didn’t mount a huge distraction.

For now.

Helio’s sister Katiucia, his business manager has also been cited in the indictment, as has his lawyer/agent Alan R. Miller. They did not enter pleas and were released on bail.

The Miller angle presents a potential opener of a huge can of worms, as the attorney also represents other drivers including NASCAR Sprint Cup star and 2-time defending champ Jimmie Johnson. J.J says he’s shocked at the charges, saying Miller’s been his lawyer since he was 15 years old, and will sit tight to see how it all plays out.

You have to think “IF” Miller’s in trouble in connection with Castroneves, might his other clients be under IRS scrutiny? It’s logical thought, but not every client employs the same services. I know of one Canadian driver who has Miller do some of his contract work, but nothing to do with his tax prep.

Miller says he’s done nothing wrong.

The tax evasion case is just the tip of the iceberg for Castroneves, even thought it’s an iceberg big enough to sink a dozen Titanic’s!

He can’t leave the States since his passport’s been seized. That means he can’t race for Team Penske at the non-points IRL show in Australia later this month, unless he’s given special consideration.

It will mean Penske will likely have to find a replacement. Roger could look to swing Sam Hornish from his NASCAR arm back to the IRL for now, but a better choice would be our own Paul Tracy. He’s a former Penske pilot and he’s won Oz before.

That may be a permanent adjustment, since Castroneves’ future with Penske is certainly in question, even though the team officially has taken an “innocent until proven guilty” stance. It’s a known fact Roger Penske likes a squeaky-clean image for his charges.

I wondered about this “innocent until proven guilty” stuff. My Dad worked for Revenue Canada for 25 years. He did farm audits. He would often remind us that in tax evasion cases, unlike most legal cases, the government is right until proven wrong. In other words when you are charged, you are guilty until YOU prove the government’s wrong.

Helio catches a break here because the U.S Constitution guarantees a man is innocent until proven guilty, but most lawyers will tell you once The IRS brings charges, it’s pretty much a done deal.

It means Helio Castroneves, who was on top of the world when he won those back-to-back Indy 500’s and that “Dancing with the Stars” thing on TV, is in for the fight of his life to not only stay out of jail, but to remain in the United States to continue his IndyCar career.

I like Helio a great deal. He’s a great guy, and a wonderful personality.

I only hope he’s innocent of these charges, and perhaps was the victim of bad advice.

But the IRS won’t care if you got bad advice. All they know is millions of dollars were made and they charge there are millions of dollars in tax still owing on the income.

If found guilty, Castroneves will have to pay the tax plus interest, pay a huge fine, and very possibly, serve jail time.

No, you’re right…..it doesn’t look good.

And it might not stop with Castroneves.

Wow.

Next week, the FIA power play that threatens to cancel the Formula One Canadian Grand Prix, after the story has a week to simmer.

ET

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