Ex-BK Racing chief admits to withholding over $2 million in payroll taxes
CHARLOTTE, N.C. — Ron Devine, former owner of the now-defunct NASCAR Cup Series team BK Racing, has pleaded guilty to willful failure to pay payroll taxes, concluding a lengthy federal investigation into one of the most financially troubled operations in recent NASCAR history.
The plea was entered in U.S. District Court in Charlotte on Tuesday, June 11, where Devine admitted to failing to turn over more than $2 million in employment taxes to the Internal Revenue Service during his ownership of the team.
Financial Misconduct Spanning Five Years
According to the U.S. Department of Justice, Devine withheld payroll taxes from BK Racing employees between 2012 and 2017—including federal income tax and Social Security/Medicare contributions—but failed to remit those funds to the IRS. Instead, prosecutors allege Devine used the money to fund team operations and other unrelated business expenses.
“Business owners have a legal responsibility to collect and remit employment taxes,” said U.S. Attorney Dena J. King in a public statement. “Mr. Devine’s failure to do so over several years harmed not only the federal treasury but also his own employees.”
The Rise and Fall of BK Racing
Devine founded BK Racing in 2012 and fielded entries in the NASCAR Cup Series through 2018. Although the team never recorded a race win, it competed in more than 240 races and featured drivers such as J.J. Yeley, Gray Gaulding, and Corey LaJoie. Despite maintaining two charters at one point—NASCAR’s system for guaranteeing team participation and revenue—the organization was plagued by financial instability.
In 2018, BK Racing filed for Chapter 11 bankruptcy, citing debts exceeding $10 million. During the proceedings, it was revealed that the team owed substantial back taxes, salaries, and vendor payments. Its assets, including one of its charters, were later sold to Front Row Motorsports.
Legal Consequences
Devine now faces a maximum sentence of five years in prison and a $250,000 fine. A sentencing date has not yet been set. He remains free on bond pending that hearing.
This case was prosecuted by the U.S. Attorney’s Office for the Western District of North Carolina, in partnership with the IRS Criminal Investigation Division and the U.S. Postal Inspection Service.
Implications for NASCAR
Devine’s guilty plea casts renewed scrutiny on financial governance in motorsports, particularly in a sport where ownership structures and charter valuations are under growing examination. While Devine no longer operates a team, his case serves as a stark warning to team owners about tax compliance and fiduciary duty.
Case Overview
Name | Ron Devine |
---|---|
Role | Former owner of BK Racing (2012–2018) |
Charge | Willful failure to pay over $2M in payroll taxes |
Penalty | Up to 5 years in prison, $250,000 fine |
Plea Entered | June 11, 2025 |
Team Outcome | BK Racing declared bankrupt in 2018 |
Final Word
Ron Devine’s fall from NASCAR team owner to federal felon underscores a serious breach of financial responsibility that spanned multiple seasons and damaged the livelihoods of employees and stakeholders. With the case now closed and sentencing pending, NASCAR’s governing bodies—and its team owners—may find themselves under pressure to strengthen financial oversight across the sport.