What Happened to BK Racing? Everything You Need to Know About Ron Devine’s $1 Million Indictment

BK Racing was a professional racing team in NASCAR that most notably fielded its cars in the Cup Series from 2012 to 2018. The team is the former owner of the #23 Toyota Camry, driven by 23XI Racing’s Bubba Wallace today. In recent news, BK Racing has been making headlines that have echoed throughout the racing world.

But what has made people talk about a long-forgotten team that went defunct 5 years ago in 2023? What forced them to opt out of the Cup Series and never return? Let us dive deeper into the subject.

BK Racing and Ron Devine’s bankruptcy

2018 was the year everything changed for BK Racing. Team owner and Burger King franchise owner Ron Devine filed for Chapter 11 bankruptcy and was taken to court by Union Bank & Trust Company over the issue of unpaid debts, which needed resolving. The case abruptly halted BK Racing’s plans, which intended to field a car in the Daytona 500 that year. The bank appointed a receiver to take ownership of the team’s assets, comprised of a charter and the team’s facilities.

BK Racing could have still fielded a car as a non-chartered team after dialogues with NASCAR, as it allowed four open spots to teams. The only downside would have been that they would receive only 35 percent of the payout, which a chartered team earned per race. Following the verdict, BK Racing was liquidated, and the assets were sold off to Front Row Motorsports, which has become a mainstay in the Cup Series since. Despite the transfer of ownership, the team still ran a car for the whole season, with FRM and the NY Racing team to thank for it.

Per the filing, the team owed creditors like the team’s engine builder, Race Engines Plus, $1.2 million. It also owed tire-supplying company Champion Tire & Wheel, Automotive parts provider Moroso Performance, and travel partner Champion Air around $95,000, $72,507, and $ 70,550, respectively.

However, Ron Devine was not the only one with a stake in the team. Apart from Devine, former racing director of Red Bull Racing Thomas Uberall and Wayne Press held assets in the team. Before the team’s inception, the charter was in control of TRG Motorsports, which shut down in 2011, one year before Devine and Co. took over. The trio combined their finances to acquire it for around $10 million.

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

Many notable drivers raced for BK Racing during its stay in the Cup, including the likes of Alex Bowman, J.J. Yeley, and Corey LaJoie. While these drivers went on to perform well on other teams, team owner Devine didn’t have the same luck.

Ron Devine has been indicted for failing to pay payroll taxes

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The process of a court hearing began in December 2022. The judge’s verdict ordered the 67-year-old Devine to compensate with $31 million to the trustee organization that took over BK Racing. The court found Devine guilty of not complying with financial disclosure procedures and implied that the trustee would be compensated fully.

According to reports from Fox Sports journalist Bob Pockrass, the $31 million that Devine was ordered to pay arises from an underhanded payment of $6 million to affiliated companies and trusts that operated outside the profession of racing and $11 million owed in debts to the operating trustee.

Fast forward to Wednesday, and Devine was indicted again. On account of failing to pay payroll taxes on four occasions, Devine has been charged with a hefty fine of $250,000 for each violation, accumulating to a big fine of $1 million. The fine stems from the fact that Devine needed to make contributions to trust fund taxes in the exact amount that was withheld from the payouts his employees received, and the amount has to be filed in the Employer’s Quarterly Federal Tax Return, Form 941, which he had failed to do since 2012, thus violating federal guidelines.

It said employers are also required to make contributions to trust fund taxes matching the amounts withheld from their employee’s pay and to file an Employer’s Quarterly Federal Tax Return, Form 941, indicating payment of the relevant taxes.

As per a release from the U.S. Attorney’s Office for the Western District of North Carolina, he didn’t pay figures on the upward scale of $390,000 in payroll taxes and has transferred a huge lump sum to businesses owned by himself and for private expenses.

The controversy has taken the NASCAR world by storm, and the name BK Racing has yet again been reminded of the fans. Despite launching the careers of some promising young drivers, BK Racing’s downfall was something unprecedented, but looking at the events that transpired behind the scenes, its situation is now understandable.

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