Rhino Linings of Memphis Owner Pleads Guilty to Fraud and Theft Charges

MEMPHIS– Clayton Gateley, 31, owner of Rhino Linings of Memphis, pleaded guilty to one count of sales tax evasion and one count of theft in Shelby County Criminal Court on Thursday.

Shelby County Judge Paula Skahan accepted Gateley’s plea, and she placed him on probation for four years. Gateley was also ordered to pay $29,693.44 in restitution to the Department of Revenue.

“This investigation serves as a reminder that retailers are not entitled to use or keep sales tax monies,” Revenue Commissioner Richard Roberts said. “Sales tax revenues collected by retailers are property of our state and local governments and must be remitted to the state.”

The Department pursued criminal prosecution of this case in cooperation with District Attorney General Amy Weirich and her office. 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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