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Special Investigations News Release

For Immediate Release: July 20, 2012

Hendersonville Businessman Guilty of Tax Evasion

J. TuneGallatin, Tenn. - On July 19, 2012, Sumner County Criminal Court Judge Dee Gay accepted John C. Tune's (age 44) guilty plea to 16 counts of sales tax evasion in violation of Tenn. Code Ann. Section 67-1-1440, a Class E Felony, and one count of theft over $60,000 in violation of Tenn. Code Ann. Section 39-14-103, a Class B Felony.

Tune, part owner of Ace, LLC, d/b/a Jersey Mike's Subs, in Hendersonville, Tennessee and its chief financial officer at the time, was convicted of evading sales taxes due to the State of Tennessee by the business. Tune received a total sentence of twelve years. He was immediately remanded to the custody of the Sumner County Sheriff's Office where he was ordered to serve one year in jail, with the remainder of the sentence to be served on supervised probation. As a condition of probation, Tune must pay restitution to the state in the amount of $132,948.70. The Tennessee Department of Revenue's Special Investigations Section conducted the investigation that led to the guilty plea and sentencing of Tune.

"When sales tax is collected from the public and not remitted, it is a breach of the public trust and a crime," said Revenue Commissioner Richard H. Roberts. "The Department of Revenue aggressively pursues criminal sanctions and demands accountability for such actions."

Prosecution of this criminal case was pursued by the department in cooperation with District Attorney General Ray Whitley's office. Commissioner Roberts expressed his appreciation for the excellent cooperation the department has enjoyed with General Whitley. Citizens who suspect violations of Tennessee's revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).

In addition to collecting state taxes, over $2.0 billion of local sales and business taxes were collected by the department for local governments during the 2012 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.

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