Former Shelby County Business Owner Arrested for Sales Tax Evasion and Theft

NASHVILLE, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and arrest of Victoria A. Padgett, former owner of Crump-Padgett Antique Gallery, LLC, located in Memphis, Tenn. The Shelby County Sheriff’s Department arrested Padgett on Nov. 10, 2007 on charges of sales tax evasion and theft.

On Nov. 8, 2007, the Shelby County Grand Jury returned true bills for two Class E felony counts of Sales Tax Evasion in violation of Tenn. Code Ann. 67-1-1440(g) and one Class D felony count of Theft Over $1,000 in violation of Tenn. Code Ann. 39-14-103. The indictments charged Padgett with failing to remit $4,471.99 of sales tax due the State of Tennessee from Aug. 1, 2003 through Dec. 31, 2003.

“The Department of Revenue is committed to applying Tennessee’s tax laws and policies uniformly to all taxpayers to ensure a level playing field,” said Revenue Commissioner Reagan Farr. “The department cannot and will not allow people engaged in fraudulent tax activities to have a competitive advantage over honest businesspeople.”

If convicted, Padgett could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each Class E felony count. The Class D felony charge carries a maximum of four years in the state penitentiary and a fine of $5,000. Additionally, civil taxes, penalties and interest will be due the state.

This case was pursued criminally by the department with the assistance of District Attorney General William L. Gibbons’ Office. Citizens who suspect violations of Tennessee’s revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).