Sevier County Businessman Pleads Guilty to Tax Evasion

Monday, May 15, 2017 | 3:14pm

SEVIERVILLE - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to Eric Eugene Gibby’s guilty plea Monday. Gibby pled guilty to one count of tax evasion, a class E felony.

Judge Robert Davies accepted Gibby’s guilty plea and placed him on two years of probation. Judge Davies also ordered Gibby to pay $12,000 in restitution to the State of Tennessee. Gibby is the former general manager of U-Drive Auto Sales in Sevierville. The Sevier County Grand Jury previously indicted Gibby for tax evasion and theft.

“Most businesses in Tennessee remit the tax dollars they collect from customers,” Revenue Commissioner David Gerregano said. “This guilty plea should serve as a warning to those that believe they can get away with tax fraud. Our Department remains committed to prosecuting tax evaders to ensure a level playing for all businesses.”

The Department pursued the criminal case in cooperation with District Attorney General James Dunn 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 2016 fiscal year, it collected $13.5 billion in state taxes and fees and more than $2.6 billion in taxes and fees for local governments.  To learn more about the Department, visit