Johnson City Businessman Pleads Guilty to Tax Evasion

JONESBOROUGH - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to Friday’s guilty plea of Nellis Randolph Medley to two counts of tax evasion, a class E felony, and two counts of falsification of tax returns, a class E felony.

Judge Lisa Rice accepted Medley’s guilty plea to two counts of tax evasion and two counts of falsification of tax returns. Judge Rice placed Medley on four years’ supervised probation and ordered him to pay $40,000 in restitution to the state. Medley is the owner of Johnson City Family Skate Center in Johnson City, and Hot Wheels Family Skate Center in Greeneville. A Washington County grand jury previously indicted Medley on tax evasion, falsification of tax returns, and theft charges.

“Our state’s tax structure depends on voluntary taxpayer compliance to remit money collected from customers,” Revenue Commissioner David Gerregano said. “Taxpayers who fail to remit collected taxes violate the public trust and the criminal laws of Tennessee. This guilty plea highlights our rigorous and impartial administration of the state’s tax laws.”

The Department pursued this criminal case in cooperation with District Attorney General Tony Clark’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 2017 fiscal year, it collected $13.9 billion in state taxes and fees and more than $2.7 billion in taxes and fees for local governments.  To learn more about the Department, visit www.tn.gov/revenue.