Former Memphis Liquor Store Owner Pleads Guilty to Sales Tax Evasion and Theft

Nashville, Tenn. - Daryl Wells, former owner of JB Liquors, pleaded guilty to one count of sales tax evasion and one count of theft in Shelby County Criminal Court Thursday.

Shelby County Criminal Court Judge Bobby Carter sentenced Wells to three years supervised probation and ordered him to pay restitution of $27,634.82 to the state for sales tax owed.  The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to Wells’ plea and sentencing.

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 pay sales tax collected at his former business, JB Liquors, located in Memphis. On December 6, 2014, Wells was extradited from the Mississippi Department of Corrections by the Shelby County Sheriff Department’s Fugitive Division immediately upon his release for other crimes.

"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."

The Department pursued this case in cooperation with District Attorney Amy Weirich and her 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.

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