Daniel Laine Kyle of Carmel-by-the-Sea, California – known best for his speed shop, Kyle Racing – pleaded guilty to defrauding the US government earlier this week, after it was found that Kyle had been hiding cash-based purchases made at this business.
Dan Kyle Racing is known best for being the largest Öhlins suspension dealership in the United States (if not the world), as the company offered aggressive pricing on the Swedish-born suspension, and was one of the first Öhlins dealers with an online presence in the early days of the internet.
According to the plea agreement made between Kyle and the US Attorney’s Office, Kyle pleaded guilty to tax fraud and structuring currency transactions in order to avoid the reporting requirements in the US Tax Code.
Kyle’s fraud centers around cash purchases made at his speed shop in Monterey County, where Kyle then used the cash to buy money orders from post offices across the country.
Keeping the money order purchase amounts below $3,000 dollars, Kyle was able to avoid having to submit a transaction report to the US Postal Service, thus hiding his laundering of the cash purchases.
Kyle would then use the money orders to buy luxury items, like jewelry and expensive cars, valued at $850,000 in total. All told, Kyle is said to have defrauded the US government of roughly $500,000 to $1,500,000 in taxes over a six-year period.
Kyle is out on bail now, and is scheduled to appear before US District Judge Edward J. Davila on August 21, 2017, for sentencing.
He could face up to three years in prison and $250,000 in fines, for making a false tax return. He could also face up to 10 years in prison and $500,000 in fines for structuring transactions to avoid reporting requirements.
Source: SF Gate