Coffee County Business Owner Charged with 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 arrest of John Constantine, Sr. for tax evasion and theft. Revenue Special Agents arrested Constantine in Manchester, Tenn. on Friday.

On January 13, the Coffee County Grand Jury indicted Constantine on six Class E felony counts of failing to file sales tax returns, one count of filing a false franchise and excise tax return and one Class C felony count of theft of property of more than $10,000.  The indictments charge that from July 2010 through December 2011, Constantine failed to remit collected sales tax.  The indictment also charges that Constantine filed a false franchise and excise tax return.  Bond was set at $35,000.

"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."

If convicted, Constantine could be sentenced to a maximum of two years in the state penitentiary and fined up to $3,000 for each count of attempted tax evasion. He could also be sentenced to a maximum of six years in the state penitentiary and fined up to $10,000 for theft of property.

This case was pursued criminally by the Department in cooperation with District Attorney Craig Northcott and his staff. 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 2014 fiscal year, it collected $11.8 billion in state taxes and fees and more than $2.3 billion in taxes and fees for local governments. To learn more about the Department, visit www.TN.gov/revenue.

###