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Gene Haas' legal issues didn't hamper U.S. Army's decision to sponsor Ryan Newman

By Bob Pockrass - Associate Editor

Thursday, October 09, 2008

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David Griffin / NASCAR Scene

David Griffin / NASCAR Scene

Montague Winfield, commanding general U.S. Army Cadet Command addressed the media at Lowe's Motor Speedway on Thursday.

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CONCORD, N.C. – The U.S. Army views Stewart-Haas Racing as a product of Tony Stewart and its sponsorship of the team and driver Ryan Newman in the 2009 NASCAR Sprint Cup Series provides enough benefits to outweigh any negatives associated with legal issues surrounding team co-owner Gene Haas.
 
Haas pled guilty last November to one count of tax fraud over a scheme designed to create more than $50 million in bogus expenses to avoid paying what the U.S. Justice Department estimated  was  $34 million in taxes. He was sentenced to two years in prison and wound up paying more than $70 million to resolve his tax issues.
 
He is currently housed in the Lompoc (Calif.) Federal Correctional Complex, with a projected release date to a halfway house on May 10 for up to another six months.
 
Stewart-Haas Racing is co-owned by Haas Automation Inc. and Stewart, a two-time NASCAR Cup champion who is leaving Joe Gibbs Racing at the end of this season. Haas, who frequently came to races after starting the Cup team in 2002, owns Haas Automation, which currently owns the Haas CNC Racing team that will be absorbed by Stewart- Haas Racing at the end of this year.
 
The Army today announced that it will sponsor Stewart-Haas driver Newman for 22 races plus the all-star event next year.
 
“Clearly, we took that into consideration, but there were things that basically overrode that particular issue,” said Maj. Gen. Montague Winfield of Haas’ legal issues. “First of all, we’re talking about the Stewart-Haas Racing team. We’re talking about a new team and more or less a new beginning.
 
“There is some history back there. The individual that deals with us, the individual that talks racing, is in fact Tony Stewart. When you think about our connection with racing, it’s all about Tony Stewart, and that’s why we ultimately made the decision to go with him. And then when we found out one of his homeboys from the same state, Ryan, was part of it, that was the icing on the cake.”
 
A Justice Department spokesman in California said in an email the department does not have an issue with the sponsorship.
 
Asked about possible public criticism of the sponsorship, Winfield indicated that the benefit that Stewart and Newman can bring to recruiting is huge.
 
“We basically separated Gene Haas from Haas Automation, and that’s why the decision was a little easier to make,” Winfield said. “We knew we wanted to be connected with Tony Stewart, and Tony Stewart is now a part of the Stewart-Haas Racing team. Haas Automation, in our mind, isn’t Gene Haas. He doesn’t run our racing team. Tony is responsible for this racing team. He has the authority to do all that is required, and he’s the point man for it.
 
“We saw America is partnering with Tony Stewart and Ryan Newman in an American car – that was another thing we were looking for. It is not a Toyota or any other foreign car. It’s a Chevrolet. We were willing to take a little bit of the risk because we wanted those two individuals representing our Army in NASCAR and in our universities and our high schools when they go out to speak and talk.”

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