US Court of Appeals issues a scathing judgment on $31M default by ‘egregious’ former NASCAR team owner

There has been a new development surrounding the BK Racing and its bankruptcy case. According to the latest reports, the United States Court of Appeals affirmed the $31 million default judgment against BK Racing and its owner Ron Devine.

Ron Devine and his associated companies have been ordered to pay $31 million to the trustees handling the bankruptcy case in 2022. The money, if collected, would go to the bank to issue loans, IRS, employees, and others who owed money from the owner.

However, as of 2025, the amount was still due, and the court slammed Devine for his 'egregious' conduct. Citing the same, Bob Pockrass shared an update from his official X account. Here's what he wrote on the micro-blogging site,

"US Court of Appeals affirms $31M default judgment against BK Racing owner Ron Devine. From the ruling:"The bankruptcy court exhibited extraordinary patience in the face of Appellants’ egregious conduct. This Court will not condone such blatant disregard for the judicial process."

BK Racing was a former American professional stock car racing team that competed in NASCAR from 2012 to 2018. It fielded renowned drivers such as Alex Bowman, JJ Yeley, Gray Gaulding, Blake Jones, Spencer Gallagher, Joey Gase, and Alon Day, and had technical alliances with multiple Cup Series teams, such as NY Racing and Front Row Motorsports.

However, in 2018, the team owner Devine was involved in a court case with Union Bank and Trust Company over outstanding loans. As a result, the team went into liquidation, and the assets were transferred to Bob Jenkins-owned Front Row Motorsports.

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What was former NASCAR team owner Ron Devine's statement after 2022 verdict?

After the Federal court ordered Ron Devine to pay up to $31 million to the party that owed money to him, the former NASCAR Cup Series team, BK Racing owner testified that he did all he could to 'comply with requests of financial disclosures."

Former NASCAR driver Gray Gaulding (23) of BK Racing Toyota Camry during the 2018 Pennzoil 400 Monster Energy NASCAR Cup Series - Source: Getty Images

Ron Devine had testified that payments in question often covered short-term loans and he did all he could to comply with requests for financial disclosures. Here's what he said:

"I'm trying as hard as I can ... to keep up with this thing. It is amazingly overwhelming. ... I am an honest person," Devine said, as quoted by Bob Pockrass 2022.

Ron Devine is yet to comment on the latest verdict as of Friday, January 17, 2025. While he has to pay up the ordered sum, the charge of failure to pay over trust fund taxes carries a maximum penalty of five years in prison and a $250,000 fine for each of the four charges that were brought against him.