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May 10, 2017

Dan Kyle Of Kyle Racing Pleads Guilty To Federal Felonies

Dan Kyle, former Crew Chief at Two Brothers Racing and Erion Racing, pleaded guilty May 8 in U.S. District Court to "tax fraud and structuring currency transactions to avoid reporting requirements," according to a press release issued by the Department of Justice, U.S. Attorney's Office, Northern District of California.

Kyle, through his high-performance motorcycle parts and tuning business, Kyle Racing, located in Sand City, California, admitted to not issuing invoices to cash-paying customers in order to underreport his income and avoid paying taxes, according to the U.S. Attorney's Office. Further, Kyle admitted to "structuring" cash purchases of money orders from various U.S. Post Offices in amounts lower than $3000 to avoid triggering required transaction reports and to avoid detection.

Kyle admitted in a plea agreement that he used the unreported cash to purchase $825,000 worth of money orders between 2007 and 2014, and he then used the money orders to purchase luxury items, like cars and jewelry.

"Kyle acknowledged that the tax loss for 2007 through 2013 resulting from his scheme was between $500,000 and $1,500,000," read the press release.

Kyle pleaded guilty to the felony charges of making a false individual income tax return, which carries a maximum sentence of three years in prison and a fine of $250,000, and of structuring currency transactions to avoid reporting requirements, which carries a maximum sentence of 10 years in prison and a fine of $500,000. 

Kyle is free on bond and is scheduled to be sentenced August 21.

Read the U.S. Attorney's Office press release here: https://www.justice.gov/usao-ndca/pr/owner-sand-ci...

Read more about Kyle's felony conviction on the website of the San Francisco Chronicle here: http://m.sfgate.com/bayarea/article/Monterey-Count...