SUMMARY
- Gene Haas, owner of Haas F1 Team, faced legal troubles with a $74 million tax fraud case in 2007, leading to a 24-month prison sentence.
- Despite his guilty plea, Haas paid hefty fines and underwent treatment for alcohol abuse.
Many team owners of Formula 1 keep away from the limelight, but Gene Haas of the Haas F1 team has been around the paddock and on the news on numerous occasions. While his team’s heyday in the sport is drawing to an end, a dark past of Haas has come to light once again. Ironically, Gene Haas was part of a tax fraud case, while, the American team is out of money and sponsorships as of today.
With the formation of Haas CNC Racing, Gene made his NASCAR debut in 2002. As a single-car team, the crew joined the Winston Cup Series after acquiring a racing facility in Concord, North Carolina. The FIA approved a license for Haas on April 11, 2014; nevertheless, the team chose to put off their debut until 2016. But his motorsport ventures were not entirely black and white at all times.
Gene Haas found guilty in tax fraud case
Back in 2007, when the American founder of Haas Automation was in his initial stages of NASCAR, he found himself in a gritty scam that involved a staggering $74 million. To conspire to defraud the government of millions of dollars in taxes, Gene Haas was sentenced to 24 months in federal prison. He had signed a guilty plea to one of the eleven federal counts against him in August of the same year.
Before receiving his prison term, Haas paid over $75 million in penalties and reparations, in addition to an extra $100 “special assessment” fee. Then 54-year-old Gene appealed for alcohol abuse treatment and the court complied. Released on a $10 million bail, Haas received instructions to surrender. After completing 16 months in prison, which began in January 2008, Haas got off on probation on May 7, 2009.
Is Haas expecting another sentence in prison with Russian linkage?
The American seems to be in hot waters quite frequently while having engaged in a chase with Russians not very long ago. The team’s association with Russia has turned out to be anything but peaceful. In a desperate attempt to gather sponsors, Haas hired Nikita Mazepin, the son of Russian oligarch Dmitry Mazepin. The driver enjoyed two years in the team until the catastrophic war with Ukraine.
🚨 | Whilst losing Mazepin’s sponsors will hurt Haas financially, Gene Haas uses Haas F1 as a marketing tool for Haas Automation…
Haas F1 being unprofitable is thus not a disaster for Gene, who told @FT in 2017 that losing $40M a year is acceptable.
[@A_S12]
— formularacers (@formularacers_) March 1, 2022
Transactions tying Haas Automation to military output from the Kremlin raised doubts in 2023 despite US sanctions. Contrary to Haas Vice President Peter Zierhut’s insistence that the company suspended its relations with Russia in 2022, reports by PBS.org indicate possible export control violations.
While the team faced scrutiny, now-retired team principal, Guenther Steiner made alarming statements regarding Russia and the sacking of Mazepin. The conflicting data that was brought to light concerning Haas Automation reveals how complex the team’s activities are and prompts doubts regarding their standing.