The jury has finally reached a verdict in the Helio Castroneves tax evasion case. There were no scorecards but Castroneves still came out a winner: a federal jury acquitted Castroneves on six counts of tax evasion but hung on one count of conspiracy following a seven week trial and six days of deliberation. Chances are that prosecutors will not pursue the conspiracy charge.
The jury also acquitted Katiucia Castroneves, who was Castroneves’ sister and business manager, on tax evasion counts but hung on the count of conspiracy.
Castroneves’ attorney, Alan Miller, was found not guilty on all three counts of tax evasion and one count of conspiracy.
Castroneves reacted by thanking his fans and saying, “Instead of going to Disneyland, I want to go to Long Beach to race. I’m going back to racing.” He is scheduled to race at this weekend’s Toyota Grand Prix of Long Beach.
So there. I managed to call one of these correctly… That crazy Wesley Snipes verdict through me for a loop.
A federal jury has reached a partial verdict in the Helio Castroneves tax evasion trial but Federal Judge Donald Graham isn’t saying much more than that. The jury has reached a decision on two charges but appears to be hung on the four other tax evasion counts and one conspiracy count. The Judge has asked the jury to try again.
The jury reached a similar “partial verdict” against Castroneves’ sister and business manager, Katuicia Castroneves. They have a full verdict against Castroneves’ attorney Alan Miller.
I’m terrible at guessing verdicts (though remarkably adept at guessing the scores at Castroneves’ old haunt, Dancing With the Stars). My guess is that the full verdict against the attorney means “not guilty” verdicts all around so far. I think they’re hung on a possible “guilty” for one or more of the counts against Castroneves and his sister because they think he did something wrong but can’t figure out what exactly. But again, just a guess. Maybe we’ll know for sure in a few days.
Helio Castroneves will face the music – again – in March. Only, he won’t be able to tango his way out of this one quite so easily.
The Indy 500 race car driver and winner of the 5th season of Dancing with the Stars (along with fan favorite Julianne Hough) found out this week that his federal court trial will begin on March 2. Castroneves is facing one count of tax conspiracy and six counts of tax evasion with respect to income that he allegedly hid in offshore accounts in order to escape taxation.
The two-time Indy 500 winner entered a not guilty plea last month. If convicted, Castroneves faces stiff penalties and jail time.
After a federal judge initially barred Helio Castroneves from leaving the country as part of the race car driver’s bail conditions, it seems he has changed his mind. Despite arguments by the prosecutors that Castroneves had both motive and assets to flee the country, U.S. Magistrate Judge William Turnoff said that he believed “the dumbest thing Mr. Castroneves could do” would be to jump his bail while he awaited trial on tax evasion and conspiracy charges.
Judge Turnoff remarked to Castroneves, “You have much to lose by not complying with conditions of release.” Castroneves reportedly nodded vigorously in agreement. The judge also took a jab at Castroneves’ appearance on Dancing With the Stars, adding that he would “tango with the U.S. marshals” if he was a no show in court.
While Castroneves is a native of Brazil, he left the country in 1996. His attorney, David Garvin, argued that there was no chance that Castroneves would flee, given that the majority of his racing contracts, appearances and promotional opportunities was tied to the United States. Castroneves is currently ranked second on the Indy circuit, just a few points behind New Zealand’s Scott Dixon.
Garvin also indicated that Castroneves would Garvin pay the Internal Revenue Service about $5 million in federal taxes after his “deferred royalty contract” expires at the end of the year; prosecutors allege that Castroneves has always had access to that account.
Prosecutors also argued that Castroneves has millions of additional dollars around the world in addition to the “deferred royalty” account, including assets in Brazil. Those assets, as well as a potential jail sentence, were sufficient reasons for Castroneves to be considered a flight risk, according to the prosecution. The judge did not buy that argument. He has allowed prosecutors the right to appeal the bail modifications but so far, no appeal is planned.
In response to the allegations, Castroneves’ racing team posted the following message on his email in Portugese:
Helio gostaria de agradecer a todos que têm ligado e escrito com seu apoio. Esse carinho e apoio significa muito pra ele.
Desde os seus 12 anos de idade ele é um piloto de corridas, e vai enfrentar esse caso como se fosse mais uma difícil corrida.
Helio não entende das leis de impostos deos EUA, por isso tem ao seu lado advogados e contadores experientes.
Ele tem fé que vencerá esse caso, pois sabe que não é culpado.
Obrigado,
Castroneves Racing RP
And in English:
Helio wants to thank everyone for their support. The phone calls and emails mean a lot to him.
Since he was 12 years old he has been a race car driver and he will face this case as a difficult race.
Helio doesn’t know much about the tax laws in the United States. For that reason, he has experienced lawyers and accountants at his side.
He has faith that he will win this case, since he knows he is not guilty.
Thank you,
Castroneves Racing PR
There are many comments at Castroneves’ site, expressing dismay over the arrest and his subsequent treatment at trial (specifically referencing the leg shackles). Do you think he was treated fairly? Do you think he’ll flee? Was his bail fair?
If it were up to my Mom, he’d be released on the strength of his samba alone…
