CNC Machinery Online Information

 bargain includes a two-year prison term for Haas, the owner of Haas Automation, which is the largest dollar-volume machine tool builder in North America and the largest unit-volume builder of CNC machines in the world.

Haas’ sentencing is scheduled for Nov. 5. If the judge declines to impose the two-year sentence, Haas or the government will be allowed to withdraw from the plea agreement.

Haas, who was arrested in June 2006 after a lengthy investigation, agreed to pay $34.2 million in back taxes for the years 2000 and 2001, as well as a $5 million fine. With statutory penalties and interest on the back taxes, Haas owes more than $70 million to the government.

Joe Custer, Haas CNC Racing general manager, said Monday afternoon that the race team will not be impacted by the Haas’ guilty plea. The team fields Nextel Cup cars for Jeff Green (primary sponsor Best Buy) and Johnny Sauter (primary sponsor Yellow Transportation).

“It’s good to put this behind us,” Custer said. “This subject has been out there for three years.”

Custer said the team hopes to retain the sponsors. Yellow mostly uses the sponsorship to entertain clients while Best Buy primarily uses its sponsorship to sell electronics.

“We’re working through it with them,” Custer said. “I think it will work out. Everybody wants to stick with somebody in a tough time. Best Buy’s investment in NASCAR has been good so far. We’ve given them a good value.”

Haas pled guilty to a scheme where bogus expenses were created to avoid paying taxes in 2000 and 2001.

Most of the payments had nothing to do with motorsports, but, according to the plea agreement, one of those payments was to Haas-sponsored C&C Motorsports.

C&C Motorsports was an off-road and Winston West team that, according to Haas Automation, was dismantled in order for efforts to be focused on Haas CNC Racing. According to the indictment, the check to C&C Motorsports was allegedly $5.215 million. C&C Motorsports then sent a check in the same amount a week later to Haas CNC Racing.

“Tax evasion is not a victimless crime,” stated Debra D. King, special agent in charge of IRS-Criminal Investigation in Los Angeles. “Honest, hardworking Americans pay the price when others choose to evade their tax obligations. The investigation and successful prosecution of Mr. Haas - resulting in prison time and one of the largest tax assessments in a criminal case in recent memory - is indicative of [the] IRS’ commitment to pursue tax crimes without regard to a person’s position or stature in the community.

“The prosecution of individuals who intentionally underreport their income and evade taxes is a vital element in maintaining public confidence in our tax system. We should not expect the honest taxpayer to foot the bill for those who attempt to defraud the IRS.”

Haas is required to serve 85 percent of the sentence before being considered for release, so he will have to serve at least 20 months and 12 days in prison.

“We’ll be all right,” Custer said. “Haas Automation owns Haas CNC Racing. At the end of the day, their business is tremendously successful. You don’t love these days, but we’ll get through it.”

http://www.scenedaily.com/stories/2007/08/27/scene_daily16.html