Former Memphis Business Owner Arrested on Fraud and Theft Charges

Memphis, Tenn. - The Tennessee Department of Revenue’s Special Investigations Section conducted the investigation that led to Wednesday’s arrest of Sonda Chatman, of Cordova.  The bond for Chatman, the former owner of Time Saver #3, was set at $5,000.

On August 28, a Shelby County Grand Jury indicted Chatman on sales tax fraud, a Class E felony, and theft of property over $10,000, a Class C felony.  If convicted of the fraud charge, Chatman could be sentenced up to two years in prison and fined $3,000.  The theft charge carries a six year sentence and a $10,000 fine.

"This investigation serves as a reminder that retailers are not entitled to use or keep sales tax monies," said Revenue Commissioner Richard Roberts. "Sales tax revenues collected by retailers are property of our state and local governments, and they must be remitted to the state as required by law."

The Department of Revenue pursued prosecution of this criminal case in cooperation with District Attorney General Amy Weirich. 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 of Revenue collects approximately 87 percent of state revenue. During the 2013 fiscal year, the Department collected $11.7 billion in state taxes and fees and more than $2.2 billion in taxes and fees for local governments. To learn more about the Department, visit www.TN.gov/revenue.

###