Larry McClure to plead guilty on tax charges

Larry McClure

Morgan-McClure Motorsports co-founder Larry McClure will plead guilty to tax fraud, according to documents filed Tuesday in U.S. District Court in Abingdon, Va.

McClure is scheduled to enter the guilty plea Jan. 15. A sentencing date has not been set.

According to a plea agreement signed Monday by McClure and filed with the court, McClure will plead guilty to five counts, including the filing of false tax returns for 2002, 2003 and 2004, as well as making false statements to Internal Revenue Service investigators.

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.

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.

McClure, who was scheduled for trial Jan. 20, 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. Scenedaily.com