Former Nashville Businessman Pleads Guilty to Sales Tax Evasion Charges

NASHVILLE, Tenn. – The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the arrest and subsequent guilty plea of Majed N. Massad on sales tax evasion and theft charges. On April 30, 2008, Massad, former owner of Zack’s #1 located at 3508 Clarksville Highway in Nashville, pleaded guilty to two Class E felony counts of sales tax evasion in violation of Tenn. Code Ann. Section 67-1-1440(g).Massad was sentenced to two years of supervised probation for each count. If Massad successfully completes the first two years of probation, then he can petition the court to allow him to spend the remaining time on unsupervised probation. The court also ordered Massad to pay restitution to the state in the amount of $48,000.81 for the sales tax he collected and failed to remit from Feb. 1, 2003 through July 31, 2004. The other counts of sales tax evasion and theft over $10,000 were dismissed pursuant to the plea agreement.

“When sales tax is collected from the public and not remitted, it is a breach of the public trust,” said Commissioner Reagan Farr. “The Department of Revenue aggressively pursues criminal sanctions and demands accountability for such actions.”

This case was pursued criminally by the department in cooperation with the District Attorney General Victor S. Johnson’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).