BK Racing competed in the NASCAR Cup Series from 2012 to 2018. The team earned just three top 10s during its run.
CHARLOTTE, N.C. β A federal appeals court has upheld a $31 million judgment against formerΒ NASCARΒ team owner Ronald Devine and his associates for what judges called a “pattern of bad faith” during bankruptcy proceedings of his former racing operation, BK Racing.
The ruling, issued Friday by the Fourth Circuit Court of Appeals, comes as Devine faces federal criminal charges for allegedly failing to pay employee payroll taxes.
The appeals court agreed with a bankruptcy court’s 2022 decision to impose the hefty default judgment after finding that Devine and his co-defendants repeatedly failed to comply with court orders and discovery requests during proceedings that began when BK Racing filed for Chapter 11 bankruptcy in 2018.
The ruling detailed how Devine threatened to “let the lawyers fight forever” and refused to disclose financial records that would have revealed millions in transfers between his various business entities. The court found Devine used multiple corporations and family trusts as alter egos to siphon approximately $6.4 million from BK Racing.
“The bankruptcy court exhibited extraordinary patience in the face of Appellants’ egregious conduct,” the ruling said. “The [Appeals] Court will not condone such blatant disregard for the judicial process.”
Devine was indicted in October 2023 in a North Carolina federal court on four counts of failure to pay payroll taxes. Prosecutors allege he diverted over $2 million in employee payroll taxes from 2012 to 2017 to other businesses he controlled.
In October 2024, Devine accepted a plea agreement for these charges. However, the details of the agreement are not public. Further hearings in the case have been delayed because of hip replacement surgery Devine underwent in September, according to court records. Devine’s next court date is scheduled for Feb. 24.Β
BK Racing competed in the NASCAR Cup Series from 2012 to 2018, fielding cars for several drivers, including current Hendrick Motorsports driver Alex Bowman. Corey LaJoie, J.J. Yeley, and Matt DiBenedetto also drove for the team. DiBenedetto scored BK Racing’s best finish, a sixth at Bristol in April 2016.
The team’s assets were sold to Front Row Motorsports in 2018 during bankruptcy proceedings.Β
