Former Knoxville Businessman Pleads Guilty to Tax Evasion and Theft

KNOXVILLE - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to Yawar Sheikh’s guilty plea Thursday. Sheikhs, 63, plead guilty to multiple felony counts of tax evasion and a felony theft charge over $60,000. Knox County Judge Bob McGhee accepted Sheikh’s guilty plea. As part of the agreement, Sheikh, the former owner of Shimla Auto Sales, will pay restitution and serve seven years supervised probation.

On May 22, 2018, the Knox County Grand Jury indicted Sheikh on a felony theft charge and multiple felony counts of tax evasion. Sheikh was indicted after filing fraudulent sales tax returns.

“The Department of Revenue promotes voluntary taxpayer compliance by educating taxpayers, aggressively pursuing criminal sanctions and demanding accountability when taxpayers engage in fraudulent activity," Revenue Commissioner David Gerregano said. "This guilty plea underscores the Department's ongoing efforts to enforce Tennessee's tax laws."

The Department pursued this criminal case in cooperation with District Attorney Charme Allen’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).

The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws, as well as the collection of taxes and fees associated with those laws. The Department collects about 87 percent of total state revenue. During the 2018 fiscal year, it collected $14.5 billion in state taxes and fees and more than $2.8 billion in taxes and fees for local governments. To learn more about the Department, visit www.tn.gov/revenue.