Former Shelby County Business Owner Pleads Guilty to Sales Tax Fraud and Theft of Property

MEMPHIS, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment, arrest and subsequent guilty plea of Victoria A. Padgett, former owner of Crump-Padgett Antique Gallery, LLC, located in Memphis. On Aug. 18, 2008, Padgett pleaded guilty to one count of sales tax fraud. She also pleaded guilty to thirteen counts of theft of property for failing to pay proceeds from sales to consignors. Sentencing is scheduled for a hearing on Oct. 2, 2008.“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.”

“Thanks to the thorough investigation by the Department of Revenue and the willingness with the victims to work with investigators, we believe this is a good resolution to a complicated and difficult case,” said Shelby County District Attorney Bill Gibbons.

This case was prosecuted by the Shelby County D.A.’s White Collar Crime Prosecution Unit. Citizens who suspect violations of Tennessee’s revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).