Former Memphis Business Owner Arrested in Las Vegas on Theft and Sales Tax Evasion Charges
Wednesday, April 15, 2009 | 07:21am
MEMPHIS, Tenn. - The Tennessee Department of Revenue’s Special Investigations Section conducted the investigation that led to the indictment and subsequent arrest of Wendell Kaku, 56, on charges of theft and sales tax evasion.
Kaku was arrested at the Las Vegas, Nevada airport after authorities made a routine background check. Bond was set at $30,000.
On October 8, 2008, the Shelby County Grand Jury returned a one-count indictment for Theft of Property Over $10,000 and two counts of Sales Tax Evasion, a violation of Tenn. Code Ann. Section 39-14-103 and 67-1-1440(g), Class C and Class E felonies, respectively. The indictments charge that Kaku failed to register his business, Midtown Supermarket, between January 1, 2003 and December 31, 2004. As a result, he failed to report sales of $255,727.46 and remit to the State of Tennessee $23,654.79 of sales tax collected.
“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.”
If convicted, Kaku could be sentenced to a maximum of six years in the state penitentiary and fined up to $10,000 for the theft charge. The tax evasion charge carries a maximum sentence of two years and a fine of up to $3,000 for each count.
This case was pursued criminally by the department in cooperation with District Attorney General William Gibbons. 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 established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2007-2008 fiscal year, the department collected $11.2 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2007-2008 fiscal year.Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.TN.gov/revenue.
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