Former Owner of Cactus Jacks Arrested on Sales Tax Evasion and Forgery Charges

Nashville, Tenn. -The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and arrest of Jeffrey Ward on charges of sales tax evasion and forgery.

On March 16, a Hardin County grand jury indicted Ward on 14 Class E felony counts of sales tax evasion and one Class D felony count of forgery. The indictments charged Ward with failure to pay $26,279.49 in sales tax through filing false and fraudulent tax returns. Ward failed to pay all the sales tax collected by Cactus Jacks, the restaurant and bar he formerly owned, from June 2011 through June 2012.

Ward, 54, was arrested on May 12, in Memphis, Tenn., and booked into the Hardin County jail on May 13. Bond was set at $20,000.

If convicted, Ward could be sentenced up to two years in the state penitentiary for each count of sales tax evasion and up to four years for the forgery charge. Ward may also be fined up to $3,000 for each count of sales tax evasion and up to $5,000 for the forgery charge.

"This investigation will serve as a reminder that retailers are not entitled to use or keep sales tax monies," Revenue Commissioner Richard Roberts said. "When sales tax revenues are collected by a retailer they are at all times property of the state or local government and must be remitted to the state."

The Department pursued this criminal case in cooperation with District Attorney Matthew Stowe. 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 2014 fiscal year, it collected $11.8 billion in state taxes and fees and more than $2.3 billion in taxes and fees for local governments. To learn more about the Department, visit www.TN.gov/revenue.

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