Worcester schools consider big donation from convicted felon's foundation
WORCESTER — The School Committee is expected to vote Thursday on whether to accept a $350,000 donation from a California-based foundation whose founder was previously convicted of tax fraud.
Meanwhile, a company run by the foundation's founder has been accused of continuing to supply technology to Russia as it wages war against Ukraine.
The Gene Haas Foundation wants to award the money to Worcester Technical High School to completely renovate its Advanced Manufacturing Program for students. The gift includes a 15-year agreement that names the program for Gene Haas, founder and president of California-based Haas Automation Inc.
The company is reportedly the largest maker of computer numerical control machine tools in North America. Haas is also co-owner of Stewart-Haas Racing with NASCAR driver Tony Stewart.
In March, PBS Newshour reported that Haas Automation had sold technology to the Russian arms industry through a former distributor, Abamet Management LTD. Haas Automation denied the report, saying it stopped sales to Russia when it invaded Ukraine in February 2022. However, the public network reported in August that the company may still be supplying Russia indirectly.
Haas denied the allegations in a prepared statement that reads, in part: "Haas wants to emphatically state that any suggestion that Haas is somehow involved in, or complicit with, any ongoing sales to Russia or the Russian defense industry are absolutely, and demonstrably, false."
Tax evasion: 2 years in jail and $70 million fine
Gene Haas pleaded guilty in 2007 to defrauding the government of more than $30 million in taxes. The indictment accused Haas of running a fraudulent invoicing scheme to generate fake tax deductions. Haas was also accused of witness intimidation.
He was sentenced to two years in jail and agreed to pay a fine, back taxes and interest of more than $70 million.
Mayor Joseph M. Petty, also School Committee chairman, said when asked if the committee should vote to accept the $350,000 that he doesn’t have a complete picture of Haas’ legal troubles. Petty wondered if Haas paid the court-ordered fine, adding that people deserve second chances.
“As of now, until I understand the facts better, I would accept the money,” said Petty.
Karen Chevalier’s daughter recently graduated from Worcester Tech and said if Haas paid the fine and is in good legal standing, there’s no problem taking the money to help students: “If (Haas) felt like he needed to do good going forward, and the foundation is supplying funds to better kids’ experience in school, then it’s OK."
Foundation calls any public concern 'misplaced'
Any concerns about the school accepting money from a convicted felon and the potential that it sends a negative message to students is “misplaced,” said Patrick Walsh, the foundation's general counsel.
“(Those who feel) the school accepting a donation intended for educational purposes sends a message that the school is in favor of tax fraud strikes me as silly,” said Walsh. “(Haas) went to prison and he paid his fine. Should he spend the rest of his life wearing sackcloth and ashes? I don’t get it.”
Walsh said Haas' legal history has occasionally been an issue in past donations nationally. But he said Haas should be “commended” for the millions he has donated for training programs and student scholarships.
It would be “foolish,” if the School Committee rejected the $350,000 donation. “It’s the foundation (giving the money), not (Haas). He’s given an enormous amount of money to the foundation. The foundation runs independent from Gene.”
Walsh acknowledged Haas is the foundation's sole financial provider.
Schools leader: $350K needed to ready students for college/careers
Schools Superintendent Rachel Monárrez said in a prepared statement the $350,000 will help students excel in the advanced manufacturing field.
“The Worcester Public Schools is committed to ensuring all our scholars are future-ready for college and career. In today’s economy with a large demand for highly skilled workers in the advanced manufacturing field, Worcester Technical High School students deserve access to modernized equipment that puts them at a competitive advantage.”
The department highlighted several points to support the importance of receiving the money:
Haas equipment is the industry standard and used in virtually every vocational-technical high school with an advanced manufacturing program in Massachusetts.
The foundation has had a partnership with Worcester Tech for more than two decades.
Manufacturing is identified as a top three regional workforce priority for Central Massachusetts in the most recent Central Massachusetts Regional Workforce Blueprint covering the years 2018 to 2022.
Foundation's money trail to Worcester, nationally
The Haas Foundation has donated $120,000 to Worcester Tech since 2016 to fund scholarships, industry-recognized credentials and equipment for student training, according to the Worcester School Department. Worcester Tech students also participate in SkillsUSA, financially supported by the Haas Foundation, that offers programs to enhance technical skills.
Past donations to Worcester Tech actually topped $120,000, said Walsh, totaling $141,000 since 2015. The grants were made to Skyline Technical Fund Inc., a 501(c)(3) nonprofit to support the high school, according to Walsh.
Petty said he wasn’t aware of Haas’ past legal troubles. Asked if he would have voted to support prior donations to Worcester Tech if he knew about Haas’ tax evasion, Petty said, “I don’t know the issue too well. I have to look into that.”
Besides donations to Worcester Tech, the Haas Foundation awarded grants totaling $1.9 million since 2014 to high schools and colleges throughout Massachusetts, said Walsh. Some past recipients include Assabet Valley Education Foundation, Blackstone Valley Vocational Regional School District, Tantasqua Regional Vocational High School, Worcester Polytechnic Institute and Quinsigamond Community College.
The Haas Foundation awarded more than $175 million in grants since the foundation’s inception in 1999, according to its website.
Contact Henry Schwan at henry.schwan@telegram.com. Follow him on X: @henrytelegram.
This article originally appeared on Telegram & Gazette: Worcester schools consider donation from Gene Haas Foundation
