2006 News Releases
For Immediate Release: September 7, 2006
REVENUE INVESTIGATION LEADS TO SURRENDER OF FORMER BUSINESS OWNER AND MANAGER IN LARGEST STATE TAX FRAUD INVESTIGATION IN TENNESSEE HISTORY
NASHVILLE, Tenn. - Today in Jackson, Randall L. Malin surrendered himself to special agents of the Tennessee Department of Revenue on charges of state sales tax evasion and theft of property as part of the largest state tax fraud case in Tennessee history in terms of associated tax dollars - more than $1 million. Malin is former chief manager and member of First Equity Ventures, LLC, a franchise ownership group for Papa John's Pizza. The Special Investigations Section of the Department of Revenue conducted an investigation that led to the indictment and subsequent surrender of Malin, age 44.
"When sales tax is collected from the public and not remitted, it is a breach of the public trust," said Revenue Commissioner Loren L. Chumley. "The Department of Revenue aggressively pursues criminal sanctions and demands accountability for such actions."
On Sept. 5, 2006, Malin was indicted by the Madison County Grand Jury on seven Class E Felony counts of sales tax evasion in violation of Tenn. Code Ann. Section 67-1-1440(d) for filing false and fraudulent sales tax returns for the company's Dickson location and failing to file sales tax returns with the state of Tennessee for the company's Paris, McMinnville, Tullahoma, Lawrenceburg, Covington, and Martin, Tenn., locations. These violations include six Class B Felony counts of theft over $60,000 in violation of Tenn. Code Ann. Section 39-14-103 and one Class C Felony count of theft over $10,000 in violation of Tenn. Code Ann. Section 39-14-103 for unlawfully exercising control over sales tax collections he failed to remit. Malin collected and failed to remit sales tax collected at each location totaling $1,078,392.27.
If convicted, Malin could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each Class E Felony count, a maximum of six years in the state penitentiary and fined $10,000 for the Class C Felony count and a maximum of 12 years in the state penitentiary and fined $25,000 for each Class B Felony count. Additionally, civil taxes, penalties and interest will be due the state.
These cases are pursued criminally by the department in cooperation with local district attorneys general.
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 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.TN.gov/revenue.
###
