TENNESSEE DEPARTMENT OF REVENUE INVESTIGATION RESULTS
IN GUILTY PLEA BY FORMER BUSINESS MANAGER

NASHVILLE, Tenn. - On Sept. 6, 2006, Josephine L. Graham, age 54, former bookkeeper and store manager for Holmes Road Liquor Store in Memphis, pled guilty to filing false sales tax returns and theft of property. The filing of false returns was a violation of Tenn. Code Ann. Section 67-1-1440(g), while her failure to remit the collected sales tax was in violation of Tenn. Code Ann. Section 39-14-103 - theft of property.

On July 28, 2006, Graham made an offer to the court agreeing to plead guilty to two felony counts - one Class C and the other Class E and pay restitution to the state of $18,836.74. She received three years judicial diversion. Graham was sentenced by Shelby County Criminal Court Judge Paula Skahan. The case was prosecuted in conjunction with the Fraud and Economic Crime Unit of the Shelby County District Attorney General's Office.

In 2004, the Shelby County Grand Jury returned indictments against Graham for two Class E Felony counts of evasion of state sales tax and one Class C Felony count for theft over $10,000 after an investigation conducted by the Special Investigations Section of the Tennessee Department of Revenue proved Graham filed false and fraudulent sales tax returns with the state of Tennessee during the period Jan. 1, 2000, through Dec. 31, 2001.

"The Department of Revenue is committed to applying Tennessee's tax laws and policies uniformly to all taxpayers to ensure a level playing field," said Revenue Commissioner Loren L. Chumley. "The department cannot and will not allow people engaged in fraudulent tax activities to have a competitive advantage over honest businesspeople."

Citizens who suspect violations of the Tennessee 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 established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2005-2006 fiscal year, the department collected $10.3 billion in state taxes and fees. In addition to collecting state taxes, $1.8 billion of local sales tax was collected by the department for local governments during the 2005-2006 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.Tennessee.gov/revenue.

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