Helio Castroneves: Tax Cheat Or Just Confused?
Former two-time Indy 500 champ and DWTS winner Helio Castroneves pled not guilty last week to a possible case of tax evasion:
Castroneves, possessed of a sunny personality, wept throughout his hearing Friday.
Castroneves, accustomed to glowing attention from the media, was peppered with questions about how he got himself into such a mess.
He stands accused of evading taxes on more than $5 million in income. He and his sister and a lawyer were indicted for planning to use an offshore shell corporation in Panama to hide the money in a ”pernicious” scheme, according to the federal prosecutor.
Castroneves pleaded not guilty, and of course he is innocent until proved otherwise. But the Internal Revenue Service isn’t known for filing flimsy cases.
The money in question concerns a $5M deal with Team Penske. A conviction could get the motorsports star 35 years in the pokey.
For his part, Helio says he and sister Kati, who manages his business interests, left much of the financial wheelings and dealings to lawyers and accountants, and he doesn’t really get the machinations of the tax machine here in America:
Prosecutors also said Castroneves lied to his tax preparers.
”I do not understand about income tax rules,” said Castroneves, 33, a native of Sao Paulo who lives in Coral Gables. “I know the difference between right and wrong, and I did not do anything what those guys are saying.”
Castroneves’ only sibling, sister Kati, managed his business interests. Her lawyer portrayed her — as her brother portrayed himself — as naive.
”She’s a foreign national, not schooled in the United States, who relied on lawyers and accountants to advise her on Helio’s financial and tax affairs,” Howard Srebnick said.
Well, while it could be true that Helio, while by all accounts a nice enough guy, could in fact be ruled more by greed than common sense, it could also be that he and his sister are telling the truth…after all, most Americans who don’t have special degrees in tax stuff get confused by just filing regular 1040 forms, let alone anything of this magnitude. Even having your taxes done by a professional doesn’t guarantee that they are doing them right. I don’t want to convict him before all the evidence is in, but it doesn’t look good…the IRS really hates cases like this.
It’s said that had Helio not participated in DWTS, he might have slid by:
It’s ironic that Castroneves will strap on a bright yellow fire suit in the colors of Penske team sponsor DHL this weekend at Road Atlanta, because Helio wore a flashy yellow outfit when he won the “DWTS” crown in November. The successful “DWTS” appearance may ultimately prove to have been a double-edged sword for Castroneves, because his increased public profile could have whetted federal prosecutors’ desire to put the hammer down on the alleged tax dodger.
With IndyCar racing rating a poor second cousin to NASCAR these days, Castroneves might have slipped under the radar had he not gained the additional tabloid notoriety from the prime-time dance contest.
And NASCAR veteran driver Jeff Gordon has some words of wisdom for Helio, although they may be too little too late:
Jeff Gordon, the NASCAR champion and a friend of Castroneves, said he doesn’t believe drivers should even have agents or middlemen. He relies on his stepfather, John Bickford, as his business manager, but Gordon wants to be at the negotiating table and investment meetings.
”To me, you’re ultimately responsible about where it goes, how it gets there and what happens,” Gordon said to reporters Friday at Talladega. “If it sounds too good to be true, it is. That’s the bottom line, and that’s just common sense.
“In this situation we’ll see how it plays out, but it’s certainly not going to be a fun ride for Helio for a while.”
Rag on Gordon all you want (and I do, I’m no fan), but that makes sense.
Helio, some more advice…if you lose this case, don’t be trying to climb any fences.
Pink Stripe WordPress Theme Designed by Joni Mueller &
I believe Helio. For someone not a native of this country, it’s easy to be a victim of bad business advice and decisions. I myself have lost a little money on some bad business moves recommended by “so called” experts and I am born and educated in the U.S. Fortunately I have probably one of the last “honest” accountants. However, honest and competent are not always the way out. After all, ultimately it is the IRS’s interpretation of the tax code that counts. So for someone who is not from the U.S. it’s easy to get lost in that tax code. I wonder if Helio’s attorney or his accountants made any money on this deal that Helio doesn’t know about, or thinks was for something else. The IRS doesn’t like to lose, so they usually don’t jump the gun, but I believe Helio is a victim here. Does he owe taxes, YES! However, I don’t think he is a criminal in the true sense, just foolish to believe people who make things look to good to be true. Hang in there buddy. You’ll definitely come out as the “champ” on this one. Just tell the truth and get a different lawyer thatn the ones you used in the past.
Comment by Rick Klejmont — October 6, 2008 @ 12:57 pm