Former NASCAR team owner pleads guilty on tax charges

Former NASCAR team owner Ron Devine has pleaded guilty in a federal court to a failure to pay payroll taxes.

Devine owned former NASCAR Cup Series team BK Racing, which raced in the series from 2012 until 2018 where they owned two charters.

At the beginning of the 2018 season BK Racing filed for bankruptcy ahead of the Daytona 500, and most of the team’s assets were sold to Front Row Motorsports who became a three-car team.

According to the plea documents, Devine exercised control over BK Racing’s financial affairs, including authorizing the filing and payment of its trust fund taxes, commonly referred to as payroll taxes.

Court records state that since 2012, Devine caused BK Racing to fail to account for and pay hundreds of thousands of dollars in payroll taxes.

Documents also show that between 2012 and 2017 Devine transferred more than $2 million to other businesses and entities that he owned and controlled, and that the former team owner used some of the funds to pay for BK Racing’s expenses.

Devine was released on bond following his guilty plea, and a sentencing date has yet to be set.

The charge of failure to truthfully account for and pay over trust fund taxes carries a maximum penalty of five years in prison and a $250,000 fine.

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Ron Devine pleads guilty in federal court

In May, Devine and his partner Michael DiSeveria, were ordered to pay $2.1 million in settlement fees to Front Row Motorsports in a federal court ruling.

FRM agreed to purchase a NASCAR charter from BK Racing for $2 million in 2016, but the team failed to disclose an outstanding loan from Union Bank and Trust on the charter they bought.

After discovering the debt, FRM only agreed to finish paying the $2 million if Devine and DiSeveria signed a personal agreement to cover any future costs.

However, when Devine and DiSeveria refused to honour their agreement they ended up in court, which ruled in FRM’s favour.

READ MORE: Chase Elliott and Kyle Larson among NASCAR Cup Series stars hit with penalties at Michigan

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