Cup team co-founder Larry McClure apologizes for actions in tax fraud case
By Bob Pockrass - Associate Editor
Thursday, January 08, 2009
Morgan-McClure Motorsports co-founder Larry McClure, who will plead guilty to tax fraud Jan. 15, apologized for his actions Thursday afternoon.
In a written statement issued through his attorney, McClure said he accepts responsibility for his actions.
According to a plea agreement signed Monday, McClure will plead guilty to the filing of false tax returns for 2002, 2003 and 2004, as well as making false statements to Internal Revenue Service investigators. McClure will appear in U.S. District Court in Abingdon, Va., on Jan. 15 to enter the guilty plea and then will be sentenced at a later date.
According to the indictment, McClure did not report $325,000 of income obtained for the use of race cars in the Automobile Racing Club of America series.
“I accept full responsibility for my actions in failing to report the said income while president of Morgan-McClure Motorsports,” McClure said in the statement. “I want to apologize to my wife, family, friends and business partners for any anguish or grief that this has caused them.
“All of our business operations will continue, and we remain very grateful for the members of the community that have supported our business over the years. With the support of my family, friends, church and my deep beliefs in Jesus Christ, we are going to move forward in this matter.”
By pleading guilty, McClure will have charges dismissed stemming from an alleged fraudulent invoice of $59,852 for the painting of show-car trailers.
According to the plea agreement, McClure states that he realizes “there is a substantial likelihood I will be incarcerated” and that the United States “will recommend I receive a substantial sentence.” He states that he understands that he could be sentenced to a maximum prison term of 15 years (three years per count), but the U.S. district attorney will request reductions in the sentence. He will not be allowed to appeal his sentence. He also could be fined a maximum of $1.25 million.
Attorneys on both sides declined to speculate on what McClure’s sentence will be.
McClure has agreed to pay $25,000 to the IRS for investigative costs and $59,852 to Eastman Kodak for the show-car trailer invoices. He also agreed to pay $125,000 prior to entering his guilty plea to go toward any fines that will be imposed as part of the sentence.
He also agreed to file amended tax returns for the three years in question.
As part of the agreement, the U.S. district attorney in western Virginia agrees not to prosecute McClure or the race team for any crimes it has knowledge about prior to the guilty plea.
Morgan-McClure Motorsports competed in NASCAR Cup racing from 1983 to 2007 and won 14 Cup races. The team did not field a Cup car in 2008 but still had about 15 people working in the shop.
The race team was not mentioned in the indictment.
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3 responses to "Cup team co-founder Larry McClure apologizes for actions in tax fraud case". Post a Comment.
Howard Englishman said:
Jan 8, 2009 at 10:08 PMYes Richard, Eastman Kodak probadly did use to put up close to 17-20 million a year To McClure. Dont trash someone you dont know nothing about with drugs. There are plenty of people that dont pay the right taxes and I dont blame them because all are taxes are spent on wars we cant win.
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» Confirm Abuse ReportKim Mullen said:
Jan 9, 2009 at 11:55 AMThe IRS needs to be abolished...and a flt or fair tax should be implemented with Nobamas stimulus package..
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» Confirm Abuse ReportBernadette Motherway said:
Jan 9, 2009 at 5:45 PMDrug money laundering is a pretty harsh accusation. Do you have proof? I thought this was tax fraud.
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