Helio Castroneves Dances with the Law (Updated 11/11/2008)

Two-time Indianapolis 500 winner Helio Castroneves, his sister and business manager Kati, and his attorney Alan Miller were indicted Thursday on charges of conspiracy and tax evasion.

According to a release from the U.S. Department of Justice, Castroneves was indicted by a grand jury on "charges of conspiracy to defraud the United States of income taxes and with six separate counts of income tax evasion for tax years 1999 through 2004."

All three are charged with conspiring to defraud the United States by using offshore shell corporations to conceal income from the IRS.  

The income under investigation for the conspiracy charge originated from a sponsorship deal with Coimex for 1999 through 2001 and his contract income as a driver for Penske Racing from 2000 through 2002. 

Castroneves and his sister are both charged with six counts of tax evasion based on allegedly false federal income tax returns filed for the driver for the years 1999 through 2004.

Miller is charged with three counts of tax evasion based on allegedly false federal income tax returns filed for Castroneves for the years 2000 to 2002.

All three defendants are expected to surrender to authorities and make their initial appearance in a Miami court Friday morning.

If convicted, all three face a maximum penalty of five years in prison on the conspiracy to defraud the United States count. They also face up to five years in prison on each of the tax evasion counts.

Castroneves is known not only for winning the Indy 500 in 2001 and 2002, but more recently for winning the fifth season of the ABC reality show Dancing with the Stars.

NOTE: "An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law."

UPDATE (10/3/2008): Early Friday, Penske Racing spokesman Bud Denker released a statement to the Free Press. He said:

Penske Racing is aware of the facts of the matter filed against Helio Castroneves. We fully support his right to his day in court and his belief in our court system. We intend to have Helio Castroneves continue to drive for Penske Racing including in tomorrow’s race here at Road Atlanta as the matter proceeds in court. Penske Racing has co-operated in the government’s investigation and will continue to do so. Penske Racing has informed it and its employees are only witnesses to this matter.

UPDATE (10/3/2008): An article on Access Hollywood has reported that Castroneves is currently in custody at a federal detention center awaiting his appearance today in a Miami court. He is expected to be released on bond within a few hours after his appearance later today.

UPDATE (10/3/2008): Helio Castroneves wept visibly as he pled not guilty to all charges when he appeared in a Miami court Friday bound in handcuffs and leg chains.

He was released on a $10 million bond and after brief remarks to the press was off to Atlanta to compete in this weekends Petit Le Mans race. 

Castroneves insists he is innocent and that he relied on advice from tax experts for his financial dealings.

The terms of his bail allow him to travel for work in the United States but not abroad. He surrendered his passport and will likely miss the IRL race in Australia later this month.

His sister and business manager Kati Castroneves and his attorney Alan R. Miller did not enter pleas Friday and were released on bail of $2 million and $250,000 respectively.

No date has been set for the next hearing.

UPDATE (10/4/2008): One day after being released on a $10 million bond after pleading not guilty to charges of conspiracy and tax evastion, Helio Castroneves and Ryan Briscoe teamed to win in the LMP2 Class at Road Course Atlanta in the Petit Le Mans.

The Team Penske driver flew directly from the courthouse appearance on Friday to the Road Course to compete in the event, which had been planned long before his indictment. 

The terms of his bail allow him to travel throughout the United States for work, but Castroneves surrendered his passport and it seems unlikely that he will be able to compete in the upcoming IRL race in Australia October 26th.

UPDATE (10/10/2008): A Miami judge has agreed to modify bail conditions on tax charges so Helio Castroneves can race later this month in Australia.

The Brazilian race car driver and last year's winner of the show "Dancing With The Stars" had originally been released on $10 million bail and had been barred from leaving the United States.

On Friday, however, a judge granted Castroneves' request to to amend the conditions of his bail that had precluded his travel outside the United States.

With today's change, Castroneves will be allowed to travel to Brisbane, Australia so he can drive in the Oct. 26 race. Prosecutors may still appeal that order.

UPDATE (11/11/2008): Helio Castroneves, his sister, and his lawyer will stand trial in March on charges of conspiracy and tax evasion. U.S. District Judge Donald Graham set a trial date of March 2, 2009 for the trio on Monday.