Former Shelby County Business Owner Arrested for Sales Tax Evasion and Theft

NASHVILLE, Tenn. – The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and subsequent arrest of Jeffrey S. Ward on sales tax evasion and theft charges. On March 11, 2008, Ward, former owner of three Dairy Queen locations in the Memphis and Shelby County area, was arrested by the Shelby County Sheriff’s Department.

Ward was indicted on March 6, 2008 by the Shelby County Grand Jury for three Class E felony counts of Sales Tax Evasion in violation of Tennessee Code Annotated 67-1-1440 and one Class B felony count of Theft of Property over $60,000 in violation of Tennessee Code Annotated 39-14-103. If convicted, Ward could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each Class E felony count and a maximum of 12 years in the state penitentiary and fined $25,000 for the Class B felony count. Additionally, civil taxes, penalties and interest will be due the state.

“The Department of Revenue promotes voluntary taxpayer compliance by educating taxpayers, aggressively pursuing criminal sanctions and demanding accountability when taxpayers engage in fraudulent activity,” said Revenue Commissioner Reagan Farr. “This investigation underscores our department’s ongoing efforts to enforce Tennessee’s tax laws.”

This case was pursued criminally by the department in cooperation with the District Attorney General William L. Gibbons’ Office. Citizens who suspect violations of Tennessee’s revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).