Oct 3, 2008 - 3:03 PM
0 shoutsMIAMI (Ticker) -- Helio Castroneves, a two-time winner of the Indianapolis 500, pleaded innocent Friday to allegations that he failed to report millions of dollars in income to the Internal Revenue Service.
The 33-year-old appeared in Miami federal court in handcuffs and leg chains. He was released on $10 million bail.
His lawyer, Mark Seiden, said Castroneves would depart Friday for a weekend race in Atlanta. He will be allowed to travel in the U.S. for work, but cannot leave the country.
The famed Brazilian driver was indicted Thursday on charges of conspiracy and six counts of tax evasion for purportedly failing to report to the IRS about $5.5 million in income between 1999 and 2004, according to court documents. Each count carries a maximum five-year prison sentence.
Also indicted were Castroneves' sister and business manager, Katiucia, and attorney Alan R. Miller. They also appeared in court Friday.
The Three defendants secured bonds Friday afternoon so they won't have to spend the weekend at the Federal Detention Center in Miami.
According to the indictment, the the trio used an offshore corporation set up in Panama to pull off the tax evasion scheme.
"It is particularly pernicious when individuals with access to offshore accounts use that to avoid paying taxes," Miami U.S. Attorney Alexander Acosta told the Miami Herald.
Castroneves' attorney, Mark Seiden, told the newspaper his client didn't knowingly violate any laws.
"Mr. Castroneves is a professional racing driver. He relied on the advice of tax lawyers and accountants in doing his tax planning," Seiden said. "It is our position that he has not violated any laws and that he relied upon their advice in good faith."
However, Acosta said Castroneves lied to his tax preparers, claiming he had no control over the Panamanian company when he did.
The 33-year-old Castroneves won the Indianapolis 500 in 2001 and 2002, becoming the fifth man to achieve the feat in consecutive years. He finished second to Team Penske teammate and countryman Gil de Ferran in 2003.
Castroneves gained American fame last year after winning the fifth season of ABC's reality television show "Dancing with the Stars" with partner Julianne Hough.
Castroneves currently lives in a Coral Gables mansion valued at more than $2.2 million.
