Revenue investigation results in guilty plea by former Crossville business owner

NASHVILLE, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment, arrest and subsequent conviction of 51-year-old Gary Austin Molthen on sales tax evasion charges. Molthen is the former owner of Big Orange Enterprises, located at 1155 West Ave., Crossville, Tenn.  On September 28, 2007, Molthen pleaded guilty in Cumberland County Criminal Court to one count of tax evasion.  The court placed Molthen on one year unsupervised probation and ordered him to make restitution to the state in the amount of $10,000.

On March 7, 2006, Molthen was indicted by the Cumberland County Grand Jury on one count of sales tax evasion, a Class E Felony in violation of Tenn. Code Ann. Section 67-1-1440(g).  The indictment charged Molthen with failing to report all taxable sales and failing to remit all sales tax collected.

“The majority of businesses pay appropriate taxes,” said Revenue Commissioner Reagan Farr.  “This case serves 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 maintain fairness in our tax structure for Tennesseans.”

Citizens who suspect violations of the Tennessee revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389). These cases are pursued criminally by the department in cooperation with local district attorneys general.