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FEDERAL COURT

Helio Castroneves faces tax-evasion charges

Celebrity car racer Helio Castroneves faces tax evasion charges for failing to pay taxes on $5 million.

jweaver@MiamiHerald.com

Helio Castroneves -- winner of both the Indianapolis 500 and reality TV show Dancing With the Stars -- soon will be doing the tango with the IRS over multimillion-dollar tax-evasion charges in Miami federal court, U.S. authorities said.

The famed Brazilian driver, who owns a Coral Gables mansion housing his auto-racing trophies and two checkered flags from his Indy 500 victories, was indicted along with a relative and a Michigan attorney on Thursday, authorities said.

The 33-year-old Team Penske star is charged with failing to pay taxes on more than $5 million of income over a four-year period, authorities said. His sister, Kati Castroneves, and his attorney, Alan Miller, are accused of assisting him in the alleged tax-evasion scheme.

They used an offshore corporation set up in Panama to pull off the scheme, according to an indictment filed Thursday.

''It is particularly pernicious when individuals with access to offshore accounts use that to avoid paying taxes,'' said Miami U.S. Attorney R. Alexander Acosta.

FEDERAL COURT

The three defendants are expected to surrender to authorities and have their first appearances in federal court on Friday morning. They could not be reached for comment Thursday afternoon.

Castroneves' attorney, Mark Seiden, said 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.''

But Acosta said Castroneves lied to his tax preparers, claiming he had no control over the Panamanian company when he actually did.

Born in Sao Paulo, Castroneves became a rich man as a race car driver, winning the Indianapolis 500 in 2001 and 2002. He was the fifth driver to achieve that milestone in consecutive years. He finished second to teammate and countryman Gil de Ferran in 2003.

According to the indictment, Castroneves, his sister and his attorney diverted $5 million in payments from Penske to offshore accounts, claiming those accounts were for deferred royalty payments -- similar to the way 401(k) money is set aside tax-free in retirement accounts. His sister later transferred several hundred thousand dollars into Swiss bank accounts, the indictment alleges.

Castroneves also earned $600,000 from a contract with a Brazilian export/import company but reported only $50,000 on his tax return, the indictment claims.

The indictment covers taxes Castroneves owed only from 1999 to 2004.

Last year, he become a bona fide American celebrity after winning the fifth season of ABC's reality TV show Dancing With the Stars with partner Julianne Hough.

At his Coral Gables home, he keeps three large trophies on three stone columns in front of a window overlooking his front patio. ''My Dancing With the Stars trophy is the one in the middle. I love that disco ball,'' he recently told a Miami Herald reporter.

After that wave of publicity, Castroneves started drawing as much interest in his love life as his racing career. He denied dating his dance partner.

ENGAGEMENT OFF

''No, I'm not dating Julianne,'' Castroneves said last December when he announced he and longtime girlfriend Aliette Vazquez had called off their engagement.

On the racetrack, Castroneves has been more of a runner-up than a winner this year.

In the IndyCar Series, Castroneves won for the first time in 30 races at the Sonoma, Calif., Grand Prix in late August.

Until that victory, he had finished runner-up seven times.

Castroneves screamed with joy when he crossed the finish line, hollering, ``Bring it home, baby.''

SPIDER MAN

He has been nicknamed Spider Man for his fence-climbing celebrations. In Sonoma, he jumped out of his No. 3 Dallara Honda at the finish line and scaled a short fence behind the pits to celebrate with fans.

'They kept telling me, `Push, push, push.' That was fun, a lot of fun,'' Castroneves said. ``Oh my God, this is awesome. We've been close so often. We never lost faith.''

For Castroneves, it was his 13th IndyCar Series victory.

In early September, Castroneves finished second in the Detroit Grand Prix, coming close to his first 2008 IndyCar Series driver championship.

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