This ESPN article is the most comprehensive and easy to understand account of the tax evasion case two-time Indy 500 champ Helio Castroneves finds himself in today.
On the afternoon of Nov. 4, 1999, the four-document deal was signed. Helio and Kati Castroneves focused purely on the bottom line ($1 million over three years plus a percentage of prize money won on the track, with a $5 million deferred bonus payment) and chose not to go point-by-point through the deal, merely turning to the last page and signing. Had they read through the agreement, and perhaps had Miller’s office not been in such a hurry to have the deal done, they would have seen that Helio was listed as the owner of Seven Promotions.
The defense claims that it was all merely a clerical error, a misunderstanding. The U.S. says that it is evidence of the truth — that Helio Castroneves owned and managed Seven, and thus is responsible for what the government believes was the company’s role as a tax shelter.
Thanks to Ryan McGee and ESPN.
McGee left out a large portion of the case against the defendants which included a sponsorship contract that Helio signed with a Brazilian company named Coimex. Coimex paid Helio $2 Million in Brazil in each of the years 1999, 2000, and 2001. Helio transferred $2 Million in each of the aforementioned years to a Panamanian offsore company (Seven Promotions) in a US Bank account, that Helio owned with his family. This Panamanian offshore company then transferred $1.8 Million in each years from 1999 thru 2001 to the bank accounts of the Coimex directors in their US bank accounts, thus breaking Brazilian Laws with these kickback payments (research and read the articles of Helio and his family being investigated in Brazil with the Coimex directors). These documents of the Coimex deal and the money transfers were presented at trial and are available at the Government website.
In addition, the prosecution has not completed their case against Helio, his sister (Katiucia) and their attorney (Alan Miller). I believe that the indictment stated that there were other unreported income and false deductions by Helio and his sister. I guess that these items will also be presented through evidence by the Government before the defense puts on their case at trial.
See link for report (translate with Google Translation)
http://www.estadao.com.br/noticias/esportes,ministerio-publico-acompanha-julgamento-de-helinho,333990,0.htm