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Team owner Gene Haas arrested for tax fraud
By Bob Pockrass
Tuesday, June 20, 2006
WORTH CONOY / VPS
Nextel Cup team owner Gene Haas was arrested Monday on federal tax fraud charges, according to a news release from the U.S. Department of Justice.
The charges allege that Haas orchestrated a scheme in which approximately $50 million of bogus expenses were put on his Haas Automation's books in an attempt to avoid the payment of more than $20 million in federal income taxes.
Haas is the owner of Haas Automation and owns Haas CNC Racing, which operates the No. 66 Nextel Cup car with driver Jeff Green and the No. 00 Busch Series car with driver Johnny Sauter.
"We believe that Mr. Haas is innocent of any and all charges," Haas Automation general manager Robert Murray said in a statement. "These IRS issues revolve around the activities of a former Haas Automation employee, and we are certain that, in the days ahead, the charges against Mr. Haas will be determined completely unfounded.
"It is well [known] that Mr. Haas has paid millions of dollars in taxes over the past years. While these current circumstances are very frustrating for Mr. Haas, they will have no impact on the day-to-day or long-timer operations of Haas Automation Inc."
Haas was being held without bail after his arraignment in U.S. District Court in Los Angeles, according to a story in The New York Times.
The Department of Justice alleges that Haas conspired with others to create bogus invoices and to pay the fictitious bills with Haas Automation checks. The indictment alleges that false expenses were recorded on Haas Automation's 2000 and 2001 financials after payments were made to a title company and a NASCAR team, identified only as C.C.M. The NASCAR team then was directed to return 100 percent of the payments, which were then deposited into bank accounts other than Haas Automation's. That part of the scheme resulted in more than $12 million in false expenses.
"These deceptive and elaborate tax evasion schemes were devised to intentionally evade the income tax obligations of Mr. Haas and his company," said IRS Special Agent-in-Charge Kenneth J. Hines in a statement.
According to the news release, the scheme allegedly started in 2000 after Haas paid approximately $8.9 million to settle a patent infringement lawsuit brought against it by a rival firm. According to the indictment, Haas blamed his loss in the case on the federal judge who presided over the lawsuit.
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