Infamous NASCAR Owner Could Face 5 Years Jail Time & $1 Million Fine After Federal Tax Fraud Charges for Planned Bankruptcy

As aggressive and unfiltered as racing in NASCAR can be, at times, it is the events outside the tracks that are more troublesome. In recent news, another controversial moment has come to light with a former Cup Series team owner in federal court for possible tax evasion.

In the past, the NASCAR community has seen its fair share of scandals, from the talented Shane Hmiel‘s drug abuse to the “Tiregate” fiasco in 1998. What makes this particular case a talking point for the community is the presence of Cup Series drivers like Corey LaJoie and Landon Cassill in the case.

Former NASCAR team owner Ron Devine charged with payroll tax evasion

BK Racing is a name not many would remember. A former member of the Cup Series, BK Racing fielded a car in the Cup during 2012–18, including some familiar names like LaJoie’s. Before the 2018 Daytona 500, team owner Ron Devine filed for Chapter 11 bankruptcy. With only 72 hours left to Daytona, a bank was requested to run the team for a short while and maintain its value as an asset so that the team’s charter could be sold or leased.

The bank that intervened in the process also reportedly claimed that BK Racing owned them figures higher than $8 million in unpaid debts and outstanding loans. In the same year, the team’s plight was taken to bankruptcy court, which sold off the charter and assets like the R&D center, cars, and facilities for a combined $2.08 million.

Going by the allegations against Ron Devine, who was responsible for the team’s financial affairs, was unable to lay out a proper plan for the team, and his decisions indirectly led to the team’s failure, worsening the condition, and Devine failed to pay the payroll taxes to his drivers.

From the facts presented in court, it is also worth noticing that in 2017, Ron Devine was unable to pay payroll taxes due to the Internal Revenue Service, which adds up to around $390,000. From 2012 to 17, he transferred approximately $2 million to the rest of his business ventures. On top of that, he has also been charged with using the same money to fund some of the team’s expenses allocated to a different budget.

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After compiling evidence and facts, the court hit Devine with a hefty fine and possible jail time.

Devine could face 5 years in federal prison

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The way payroll taxes work is that they should be mentioned in the gross pay a driver in NASCAR receives. Instead, it is a part of the payment package that includes funds for social security, healthcare, income taxes, etc. Where Devine went wrong was that he used the funds allocated for a return of payroll taxes; he used them for his causes in different mediums and ventures.

According to the United States Attorney’s Office Western District of North Carolina, proceedings for the case will begin with Devine’s first appearance in Charlotte’s federal court. Devine needs to properly account for the enormous gap in the team’s finances and could face a maximum of five years in jail for his crimes. On top of that, the court has also handed him a fine of $1 million that has been divided into four instances of $250,000 each for all the counts in the indictment.

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While Devine can be presumed innocent until guilty, the mountain of evidence and facts in the ruckus indicate that Devine could potentially have the worst outcome and would end up paying the fine and possibly some time in jail or another huge penalty to compensate for it. It looks like the complicated world behind NASCAR races is more complex than it seems.