News Motorcycle Legislation Dan Kyle of Kyle Racing Pleads Guilty to Felony Tax Fraud

Dan Kyle of Kyle Racing Pleads Guilty to Felony Tax Fraud

Dan Kyle Felony Tax Fraud Scheme

Dan Kyle, owner of Kyle Racing in Sand City, Calif., and former AMA Pro Racing crew chief, pleaded guilty May 8 to a felony tax fraud scheme, according to a press release from the U.S. Attorney’s Office for the Northern District of California.

The press release states that Kyle, of Carmel, Calif., told employees not to issue invoices for customers who paid cash. From 2007 through 2013, the scheme allowed Kyle to hide a tax loss of between $500,000 to $1.5 million from the IRS, according to the U.S. Attorney’s Office.

Dan Kyle of Kyle Racing Pleads Guilty to Felony Tax FraudAccording to his plea agreement, between August 8, 2007, and March 22, 2014, Kyle purchased, with cash, more than $825,000 worth of money orders. Kyle used the money orders to purchase cars and jewelry from Audi Financial, BMW of Monterey, Tiffany and Company, Christies, Porsche Financial Services, Capital One Bank, Citibank, Monterey Credit Union, and Wells Fargo Bank.

Kyle, a former crew chief for Erion Racing and Two Brothers Racing, admitted that he “structured” cash purchases between August 2007 and March 2014 to avoid detection. The press release says Kyle “admitted that he knew anyone purchasing $3,000.00 or more in postal money orders in one day is required to submit a transaction report.  Instead of submitting the report, Kyle admitted he intentionally purchased less than $3,000 per day to avoid triggering reporting requirements.”

Kyle was charged on March 22, 2017, on felony tax fraud charges for the 2007 year. The maximum sentence for willfully making and subscribing to a false tax return is three years in prison and a fine of $250,000.  The maximum sentence for and structuring currency transactions to avoid reporting requirements is ten years in prison and a fine of $500,000.

Kyle remains free on bond and is scheduled for sentencing on Aug. 21, 2017.

According to Kyle Racing’s website, Dan Kyle has prepared engines for riders Rich Oliver, Fred Merkel, Larry Pegram, Michael Barnes, Andrew Stroud, John Kocinski, and other champions. He was also twice awarded the AMA Tuner Of The Year.

Ron Lieback
Ron Lieback
One of the few moto journalists based on the East Coast, Ron Lieback joined the motorcycle industry as a freelancer in 2007, and is currently Online Editor at Ultimate Motorcycling. He is also the author of "365 to Vision: Modern Writer's Guide (How to Produce More Quality Writing in Less Time).

Helmet Use by U.S. Motorcyclists Trends Higher in Past Decade

Could the availability of better helmet options be part of the reason? According to the U. S. Department of Transportation National Highway Traffic Safety Administration...

Editor’s Letter: A Very Merry Christmas When I Became An ‘Authentic Motorcyclist’

At the end, my parents handed me a small package. I opened it up, and it was a little booklet. It had pictures of a motorcycle.

2021 AMA Supercross and Motocross Pro Numbers: List and Analysis

Supercross starts up in January, and it’s time to match the latest crop of riders to the numbers on their motorcycles. The biggest news...

Cardo Packtalk Black and Prototype Headset Review: Racing Intercom

Cardo has been well known for its high-quality helmet-to-helmet communication systems for over a decade. Cardo uses Bluetooth technology in both is Packtalk and...

2021 Husqvarna FC 450 Rockstar Edition First Look (8 Fast Facts)

The triumvirate of 2020 AMA 450MX National Champion Zach Osborne, 2018 AMA Supercross Champion Jason Anderson, and Dean Wilson will all be racing motorcycle...

Shoei RF-1400 First Look: New Motorcycle Helmet

The folks at Shoei made the best of our pandemic situation with their unique launch of the new Shoei RF-1400. They shipped us the...