Loudon County Businessman Arrested on Sales Tax Evasion and Theft Charges

KNOXVILLE - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and arrest of Robert Wayne Berry, Jr. for sales tax evasion and theft.  Revenue special agents arrested Berry, 50, at his business in Lenoir City.

On November 3, the Knox County Grand Jury indicted Berry on 24 Class E felony counts of sales tax evasion and one Class C felony count of theft of property over $10,000.  The indictments charge that from January 2011 through January 2013, Berry failed to remit state sales tax from sales at Eurohaus Motorsports, LLC.  Bond was set at $20,000.

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

If convicted, Berry could be sentenced to a maximum of two years in the state penitentiary and fined up to $3,000 for each count of attempted sales tax evasion and a maximum of six years in the state penitentiary and fined up to $10,000 for theft of property.

The Department pursued the criminal case in cooperation with District Attorney General Charme Allen and her staff. 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 collects about 87 percent of total state revenue. During the 2015 fiscal year, it collected $12.6 billion in state taxes and fees and more than $2.4 billion in taxes and fees for local governments.  To learn more about the Department, visit www.tn.gov/revenue.

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