NASHVILLE, Tenn. - Daniel Lee Trejo, d/b/a Mattress Direct, 7321 Kingston Pike, Knoxville, Tenn., surrendered himself to authorities at the Knox County Sheriff's Detention Center for sales tax evasion on Nov. 14, 2005. The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation leading to the indictment and surrender of Trejo, age 35.

"The majority of businesses pay appropriate taxes," said Revenue Commissioner Loren L. Chumley. "This case serves as a warning to others who think they can get away with tax fraud in Tennessee. We will continue to pursue criminal activity and prosecute tax evaders to maintain fairness in our tax structure for Tennesseans."

Trejo was indicted by the Knox County Grand Jury on Sept. 26, 2005, on 54 counts of sales tax fraud, a Class E Felony and three counts of felony theft of less than $60,000. These are in violation of Tenn. Code Ann. Sections 67-1-1440(d) and (g) and 39-14-103.

A $2,500 bond was set. If convicted, Trejo could be sentenced to a maximum of two years in the state penitentiary for each count of sales tax fraud and fined $3,000 for each count relating to his failure to remit sales tax collected. Also for each count of theft, Trejo could be sentenced to six years in the state penitentiary and fined up to $10,000. In addition, civil tax, interest, and penalties are due the state.

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 collects approximately 92 percent of total state tax revenue. During the 2004-2005 fiscal year, the department collected $9.6 billion in state taxes and fees. In addition to collecting state taxes, $1.7 billion of local sales tax was collected by the department for local governments during the 2004-2005 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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