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IndustryArena Forum > MetalWorking Machines > Haas Machines > Haas Mills > Haas charged with tax evasion
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  1. #101
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    Aug 2005
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    235
    Geof,

    I would love to play by the rules, but it seems that when you know exactly what the rules are and you win, the other side just prosocutes you anyway.

  2. #102
    Join Date
    Oct 2003
    Posts
    352
    Maybe if Gene was a rock star or a movie star, the court might be more lenient
    with his sentence. Or maybe should have hired Paris Hilton's or Nicole Ritchie's lawyers. Hell, Mel Gibson's lawyer would have been a start. I am not saying what he did as justified or proper, but a crack head drunk celebrity has it made in the shade. And that's all I have to say about that! Just in case that line is a registered trade mark of "Forrest Gump" SUE ME!!!

  3. #103
    Join Date
    Mar 2004
    Posts
    19
    At the end of the day Gene Haas is guilty. For the last few years he has been telling all that he did nothing wrong. It was others who did illegal things, that he knew nothing about "he was a Victim" Well every morning he has to look at himself in the mirror and accept that he did it. And he tried to toss his friends under the bus to save his own butt. He only took a deal because they had him and to not take a deal could have resulted in 20 plus years in jail. Even in pleading Guilty he is still acting like he is above the law, Haas Spokesman states "a lot of things can happen between now and November 5" As if to imply that a fix is in and that he will not have to do jail time. I don't care that he cheated on his taxes, That he involved his friends in his little fraud and then tried to blame them to save himself is about as low as it gets.
    Gene Haas has lots of money, he will pay the fine, do the 2 years and still have lots of money. The rest of what he has done he will just have to live with.

  4. #104
    Join Date
    Jul 2005
    Posts
    12177
    Quote Originally Posted by AMCTony View Post
    Geof,

    I would love to play by the rules, but it seems that when you know exactly what the rules are and you win, the other side just prosocutes you anyway.
    In Haas' case he was sued by another machine manufacturer for patent and/or copyright infringement and lost the case before a jury. He could have just left it there but instead tried to recoup the damages he had to pay by creating fraudulent financial records to reduce his tax payments. Whether or not he knew the rules he did contravene them and he didn't win.

    And if you think he should not have been sued for the patent/copyright stuff put yourself in the shoes of the owner of the patent that was infringed. If you had a patent and I infringed it you would sue me for damages surely.
    An open mind is a virtue...so long as all the common sense has not leaked out.

  5. #105
    Join Date
    Feb 2007
    Posts
    129

    Angry

    To average folk like you or me, you know they would have thrown the book at us! I guarantee the average person would be looking at a lot years for a crime like this! I’m real curious to see how this one turns out.(flame2)

  6. #106
    Join Date
    Aug 2003
    Posts
    812
    Boy I got that one wrong. I never would have thought he'd get any jail time. Figured he'd buy his way out somehow.

  7. #107
    Join Date
    Aug 2005
    Posts
    235
    Geof,

    If that is the case and I do not doubt it a bit, then he should get exactly what is coming to him. I have had intellectual property stolen from me and it sucks to say the least especially when you do not have the financial horse power to do anything about it. I was under the impression that this was just a tax issue and nothing more.

  8. #108
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    Jul 2005
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    12177
    Quote Originally Posted by AMCTony View Post
    .... I was under the impression that this was just a tax issue and nothing more.
    What he will be jailed on is a tax issue; although I think to be more accurate it is a fraud issue. He and his cohorts drew up fraudulent documents to create spurious tax deductions; or that is my understanding of it. And the reason he did it was because he lost a patent case and figured the federal judge was biased against him or something like that. At least that is what I got out of reading some accounts.

    The reason I say it is stupid to do something like this is that if you just evade taxes...neglect to report income...that is only a tax issue. If you create fraudulent documents for fraudulent deductions that is both a fraud issue and a tax issue.
    An open mind is a virtue...so long as all the common sense has not leaked out.

  9. #109
    Join Date
    Mar 2006
    Posts
    93

    just my thoughts

    if you don,t read the paper your uninformed if you do read it your misinformed
    Mark Twain

  10. #110
    Join Date
    Dec 2006
    Posts
    9

    Justice for Haas

    How about having Haas unlock all the hidden codes in US sold equipment. That way the tax loss and its social benefit can be partially offset by an increase in US manufacturing productivity and job retention.

    As far as early release goes, why wouldn't Gene want to tour all installations of Haas equipment, and serve as debugger and advisor on upgrades, warranty service, new innovations, and just generally help out for a few days at each plant. That way he could stay at a decent Motel 6, get some free meals, be treated with a modicum of respect, and help the American Manufacturing Industry, ameliorating his obvious contempt, and doing some good.

    Bob Crowley
    President
    Soundwave Research Laboratories, Inc
    Ashland MA
    http://www.soundwaveresearch.com
    patents at
    http://www.ambitcorp.com
    lab at
    http://microphonium.blogspot.com
    Bob Crowley
    http://www.soundwaveresearch.com

  11. #111
    Join Date
    Jul 2005
    Posts
    100

    Gene Haas sentenced 2 years in Federal pen.

    LOS ANGELES — Surrounded by lawyers and his family, Gene Haas was sentenced Monday to 24 months in federal prison for conspiring to cheat the government out of millions of dollars in taxes owed by his company.

    The owner of Oxnard-based Haas Automation Inc. pleaded guilty in August, taking responsibility for one of 11 federal charges brought against him.

    Along with agreeing to a two-year prison sentence, Haas paid about $75 million in restitution and fines before arriving in court Monday, the judge noted, adding that Haas had to write one more check for $100 for a "special assessment" fee.

    Through his lawyers Monday, Haas, 54, of Camarillo requested treatment for alcohol dependency, and the court recommended he be considered for the Federal Bureau of Prison's 500-hour drug and alcohol program.

    His attorneys also requested — and the judge recommended — that Haas be placed at the Federal Correctional Institution in Lompoc, a low-security prison for male inmates near Vandenberg Air Force Base.

    Assistant U.S. Attorney Sandra R. Brown pointed out that while the judge may make recommendations pertaining to Haas' sentencing, the Bureau of Prisons will decide whether to allow Haas to undergo substance abuse treatment or be placed at the Lompoc facility.

    Haas left the hearing at the U.S. District Court in Los Angeles with his family and attorneys. He was ordered to return to the court and surrender himself Jan. 14. Haas remains free on $10 million bail.

  12. #112
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    Feb 2007
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    205
    In2glamisgirl - You never write anything constructive on this Haas forum ... you just throw rocks.

  13. #113
    Join Date
    Jul 2005
    Posts
    100

    Just the facts

    No rocks thrown intentionally, just facts from the news.

    I started this thread with the Gene's arrest press release. I have followed this case from the start and find it verry interesting. It is fitting that I also posted the conviction press release.

    I think this is good news for Haas automation as they finally know the cost and punishment they have to accept.

    I wish Gene the best with his current situtation.

  14. #114
    Join Date
    Jul 2007
    Posts
    195
    Haas started out with a noble idea. Build american machines with american parts and labor. That lasted about 3 years and then he started to get greedy and out scorced a lot of his parts. That is why he was spending so much time in China. Just like so many other people once he got a taste of the money and power, all the rules went out the window. Give me more, more, more! As far as I'm concerned he is about to get everything he's got comming to him! If you recall that's the way they got Al Capone.
    Taxes did him in...........One more bad apple.
    Be carefull what you wish for, you might get it.

  15. #115
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    Apr 2005
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    1194
    75 Million! Who said their wasnt money in making CNC machines

  16. #116
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    Aug 2007
    Posts
    96
    No, its in the service and replacement parts. That is where the big money is and where they make it.

  17. #117
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    Sep 2007
    Posts
    116
    Seriously Rocko. Just what % of parts are form China in Haas-s?
    At least they are still built here, unlike Hurco, bunch of Hardinge and many other supposed USA built companies.
    Was he dumb to do what he did? Yup, no question.

  18. #118
    Join Date
    Apr 2006
    Posts
    235
    Quote Originally Posted by JROM View Post
    Haas started out with a noble idea. Build american machines with american parts and labor. That lasted about 3 years and then he started to get greedy and out scorced a lot of his parts. That is why he was spending so much time in China.
    Just out of curiosity, what Haas parts are made in China? The fact that Haas is based and manufactures solely in the US is one of the main reasons why I picked Haas over Fadal/Hurco/Hardinge.

    Given the flood of imports these days, it was inspirational to tour the Haas plant. . . . . though my machine sits mostly idle it's nice to know what is still possible.

  19. #119
    Join Date
    Jul 2005
    Posts
    12177
    It was my understanding that Haas was so active in China and other overseas locations so they could sell machines.
    An open mind is a virtue...so long as all the common sense has not leaked out.

  20. #120
    Join Date
    Feb 2007
    Posts
    205
    Haas Automation, INC. is expanding in the overseas market .. their goal is to have 65% of their sales overseas... Oct 07 .. 1356 machines sold .... 1355 built ... in one month ... they must be doing something right.

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