Former Madison County Businessman Pleads Guilty to Sales Tax Evasion and Theft

Jackson, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the November 10, 2009 guilty plea of Mutee Hussein Fadah, age 39, of Madison County. Fadah, the former owner of J Mart, located at 1625 E. Chester Street, pleaded guilty to two counts of Sales Tax Evasion and one count of Theft Over $500.00.

 

Fadah was sentenced to one year in jail.  As part of the sentencing, Fadah was granted Judicial Diverson and place on probation for one year. Fadah was also ordered to pay $8,636.13 in restitution to the Department of Revenue for sales tax he collected but intentionally did not remit.

 

“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 District Attorney General Jerry Woodall’s office. Citizens who suspect violations of the Tennessee revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).

 

The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2008-2009 fiscal year, the department collected $10.2 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2008-2009 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.TN.gov/revenue.

 

 

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