Former Memphis Business Owner Arrested on Sales Tax and Theft Charges

Nashville, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the arrest of Daryl Wells for sales tax evasion.  Wells was extradited from the Mississippi Department of Corrections by the Shelby County Sheriff Department’s Fugitive Division immediately upon his December 6 release for prior crimes.

On March 2, 2006, a Shelby County Grand Jury indicted Wells on three Class E felony counts of sales tax evasion and one Class C felony charge of theft.  The indictments charged that from December 1, 2001 through December 31, 2004, Wells failed to remit sales tax collected for his business, JB Liquors.  Bond for Wells was set at $7,000.

If convicted, Wells could be sentenced to a maximum of two years in the state penitentiary and fined up to $3,000 for each count of sales tax evasion, and a maximum of six years and a $10,000 fine for the theft count.

"This investigation will serve as a reminder that retailers are not entitled to use or keep sales tax monies," Revenue Commissioner Richard Roberts said. "When sales tax revenues are collected by a retailer they are at all times property of the state or local government and must be remitted to the state."

This case is being pursued criminally by the Department in cooperation with District Attorney Amy Weirich.  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 and the collection of taxes and fees associated with those laws. The Department collects about 87 percent of total state revenue. During the 2013 fiscal year, it collected $11.7 billion in state taxes and fees and more than $2.2 billion in taxes and fees for local governments.  To learn more about the Department, visit www.TN.gov/revenue.

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