Castroneves Acquitted Of Most Tax Charges - To Race Sunday

17/04/2009 19:51

MIAMI - Brazilian race car driver Helio Castroneves was acquitted Friday of most charges that he worked with his sister and lawyer to evade more than US$2.3 million in income tax.

A federal jury acquitted Castroneves, the 2007 winner of TV's and "Dancing With The Stars," on six counts of tax evasion but hung on one count of conspiracy. When the sentence was read, Castroneves broke into sobs and leaned against his lawyers for support.

The jury also acquitted Katiucia Castroneves, 35, who is her 33-year-old brother's business manager, on the tax evasion counts but also hung on the conspiracy. Michigan motorsports lawyer Alan Miller, 71, was acquitted on all three counts of tax evasion and one count of conspiracy.

The jury deliberated six days after a six-week trial.

Castroneves, speaking in his native Portuguese, expressed profound relief.

"I just want to thank God and my fans, and all of the people who prayed for me," he said outside the courtroom, still fingering a rosary.

A few moments later, Castroneves said that he can't wait to suit up for this weekend's Toyota Grand Prix of Long Beach.

"Instead of going to Disneyland, I want to go to Long Beach to race," he said. "I'm going back to racing."

He said he planned to leave Friday night for Los Angeles, where he will race for Team Penske.

Penske officials did not immediately return a message but planned to hold a news conference later in the afternoon.

All three faced more than six years in prison if convicted of conspiracy and tax evasion between 1999 and 2004. The case mainly revolved around income from a $2-million sponsorship deal Castroneves had with the Brazilian firm Coimex and his $5-million licensing deal he reached with Penske Racing in late 1999.

Alicia Valle, spokeswoman for the U.S. Attorney's office, said prosecutors will review all of the options on the hung conspiracy charge "to determine how best to proceed."

Castroneves' lawyers said it would be "illogical to proceed" with refiling the conspiracy count.

Castroneves, a two-time Indianapolis 500 winner and one of the Indy racing circuit's most popular drivers, was temporarily replaced on Team Penske by Australian Will Power pending the outcome of the case.

Central to the case was the ownership of a Panamanian company called Seven Promotions. Prosecutors called it a shell corporation set up primarily so Castroneves could dodge U.S. income taxes, but Castroneves' father testified he created Seven to boost his son's image in Brazil. The elder Castroneves said his son never owned it.

Prosecutors called that a lie, showing jurors numerous documents in which Castroneves claimed Seven as his own. If it was, an Internal Revenue Service agent testified that Castroneves owed U.S. taxes on the full $5 million from Penske even though he has never actually received the money.

More from Canadian Press.

SWIVEL HIPS SAYS:

I can’t believe this, folks. He really did just dance his way around the IRS. Good for you, Helio!