Car owner Haas sentenced to 24 months in prison

LOS ANGELES -- Gene Haas was sentenced to 24 months in federal prison today for conspiring to cheat the government out of millions of dollars in taxes owed by his company, the Ventura County Star reported Tuesday.

At the request of Haas' lawyers, the judge recommended the owner of Oxnard-based Haas Automation Inc. undergo treatment for drugs and alcohol.

Gene Haas

Haas is the owner for the Nos. 66 and 70 Haas CNC Racing stock cars in the Nextel Cup Series. Jeremy Mayfield, who recently replaced Jeff Green in the No. 66, and Johnny Sauter are the team's drivers. Scott Riggs will replace Sauter, beginning in 2008.

At a sentencing hearing Monday, a judge ordered Haas to report to federal court Jan. 14, when he will be transported to prison.

"Mr. Haas has now paid the government more than twice the amount of taxes he attempted to avoid paying," U.S. Attorney Thomas P. O'Brien said in a statement.

"This huge monetary penalty, as well as the two-year prison term, should reassure law-abiding citizens that tax evasion can and will be rooted out, and that there are significant ramifications for those who attempt to cheat the government," he said.

Haas, 54, pleaded guilty in August to a felony conspiracy charge for orchestrating a plan to list bogus expenses that could be written off as business costs and save Haas Automation millions in taxes. The company makes computerized machine tools.

In his plea agreement, Haas took responsibility for one of 11 federal charges brought against him, agreeing to spend two years in prison. As part of the deal, he has paid more than $70 million in restitution and fines.

Haas Automation Inc. is the country's largest machine tool builder and is one of Ventura County's larger employers, with about 1,100 workers. Haas has also been one of Ventura County's most generous philanthropists.

His plea followed a six-year investigation that snared five of Haas' business associates, who all have pleaded guilty in connection with the tax fraud scheme.

Haas made his Cup debut in 2002 with Jack Sprague. In 215 starts, Haas cars have one top-five finish -- Sauter's fifth-place finish at Richmond in September -- and 13 top-10s.

The Associated Press contributed to this report.