Johnson City Businessman Arrested for Tax Evasion

Wednesday, July 19, 2017 | 10:39am

JONESBOROUGH  - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and arrest of Nellis Randolph Medley for tax evasion and related charges. Department of Revenue special agents arrested Medley, 52, at his business and transported him to the Washington County Detention Center on Tuesday.

On July 12, 2017, the Washington County Grand Jury indicted Medley on two counts of falsification of a tax return, two counts theft of property over $10,000, and two counts of tax evasion in violation of Tennessee revenue laws. The indictments charge that Medley failed to remit sales tax due for Johnson City Family Skate Center in Johnson City, and Hot Wheels Family Skate Center, in Greeneville. Bond was set at $25,000.

"Investigations, such as this one, should warn retailers that failing to properly remit all the sales tax monies they collect is a crime," Revenue Commissioner David Gerregano said. "The taxes collected from customers are property of the state and local governments at all times. Customers have a right to know that the tax they pay will be remitted to the state and used for the public good of all Tennesseans."

If convicted, Medley could be sentenced to a maximum of two years in the state penitentiary and fined up to $3,000 for each count of tax evasion.

The Department is pursuing this criminal case in cooperation with District Attorney Tony Clark’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 2016 fiscal year, it collected $13.5 billion in state taxes and fees, and more than $2.6 billion in taxes and fees for local governments. To learn more about the Department, visit