Shelby County Residents Arrested on Sales Tax Evasion and Theft Charges

 

“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. "These investigations underscore our department's ongoing efforts to enforce Tennessee's tax laws."

 

On April 5, Lori L. Miller, age 35, former co-owner of Wendell’s World Beat Grill at 414 South Main Street in Memphis, was arrested by Shelby County Sheriff’s deputies on 12 counts of falsification of sales tax returns, one count of sales tax evasion and one count of theft of property. Bond was set at $20,000. On March 31, 2009, a Shelby County Grand Jury returned a 14-count indictment that included 12 counts of Falsification of Sales Tax Returns in violation of Tenn. Code Ann. 67-1-1440(d), each a Class E felony; one count of Sales Tax Evasion in violation of Tenn. Code Ann. 67-1-1440(g), a Class E felony; and one count of Theft of Property over $10,000 in violation of Tenn. Code Ann. 39-14-103, a Class C felony. The indictments charged that Miller filed false and fraudulent sales tax returns with the Tennessee Department of Revenue with the intent to defraud the State of Tennessee. If convicted of the Class E felonies, Miller could be sentenced to two years in the state penitentiary and fined an amount not to exceed $3,000 for each count. The Class C felony carries a maximum of six years in the state penitentiary and maximum $10,000 fine.

 

On April 4, Mahendra Patel, 46, was arrested by Shelby County Sheriff’s deputies on 20 counts of sales tax evasion and one count of theft over $10,000. Bond was set at $20,000. On March 31, 2009, the Shelby County Grand Jury returned a 21-count indictment, including 19 counts of Falsification of Sales Tax Returns in violation of Tenn. Code Ann. 67-1-1440(d), each a Class E felony; one count of Sales Tax Evasion in violation of Tenn. Code Ann. 671-1440(g), a Class E felony; and one count Theft of Property over $10,000 in violation of Tenn. Code Ann. 39-14-103, a Class C felony. The indictments charged between Sept. 1, 2003 and April 30, 2005, Patel knowingly withheld more than $10,000 of sales taxes collected from the State of Tennessee and filed false and fraudulent sales tax returns. If convicted, Patel could be sentenced to a maximum of six years in the state penitentiary and fined up to $10,000 for the theft charge, and two years and a fine of up to $3,000 for each of the evasion charges.

 

Also on April 4, Kamal I. Nakhleh, 39, former manager of the Broad Street Market, 2637 Broad Avenue in Memphis was arrested by Shelby County Sheriff’s deputies on one count of sales tax evasion. Bond was set at $30,000. On March 31, 2009, Nakhleh was indicted on one count of Sales Tax Evasion for attempting to evade sales tax from Jan. 2003 through Dec. 2003 in violation of Tenn. Code Ann. 67-1-1440(g), a Class E felony. If convicted, Nakhleh could be sentenced to a maximum of two years in the state penitentiary and pay a maximum fine of $3,000.

 

All individuals charged will also owe civil taxes, penalties and interest to the state once criminal cases are concluded.

 

These cases were pursued criminally by the department in cooperation with District Attorney General William Gibbon’s Fraud and Economic Crimes unit. Citizens who suspect violations of Tennessee's 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 2007-2008 fiscal year, the department collected $11.2 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 2007-2008 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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