Convenience Store Owners Plead Guilty to Sales Tax Fraud and Theft

MEMPHIS - Ali Al-Harbi, 45, and Mohamed Nagi, 61, owners of Twins Food Mart in Memphis, pleaded guilty to sales tax fraud and theft of property Friday.

Judge Bobby Carter sentenced Al-Harbi to four years probation, and he must serve one day a week in prison for six months. Judge Carter also sentenced Nagi to four years probation, and he must serve one day a week in prison for 90 days. Judge Carter also ordered Al-Harbi and Nagi to pay $29,607.11 in restitution to the state for taxes owed. The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation.

"The majority of businesses pay appropriate taxes," Revenue Commissioner Richard Roberts said. "I hope this case will serve as a warning to others who think they can get away with tax fraud in Tennessee. We will continue to pursue criminal activity and prosecute tax evaders to ensure fairness in our tax structure."

The Department pursued this case in cooperation with Shelby County District Attorney General Amy Weirich's 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.

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