FORMER SHELBY COUNTY BUSINESS OWNER PLEADS GUILTY
TO SALES TAX FRAUD AND THEFT OF PROPERTY

MEMPHIS, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment, arrest and subsequent guilty plea of Victoria A. Padgett, former owner of Crump-Padgett Antique Gallery, LLC, located in Memphis. On Aug. 18, 2008, Padgett pleaded guilty to one count of sales tax fraud. She also pleaded guilty to thirteen counts of theft of property for failing to pay proceeds from sales to consignors. Sentencing is scheduled for a hearing on Oct. 2, 2008.

“The Department of Revenue promotes voluntary taxpayer compliance by educating taxpayers, aggressively pursuing criminal sanctions, and demanding accountability when taxpayers engage in fraudulent activity," said Revenue Commissioner Reagan Farr. "This investigation underscores our department's ongoing efforts to enforce Tennessee's tax laws."

“Thanks to the thorough investigation by the Department of Revenue and the willingness with the victims to work with investigators, we believe this is a good resolution to a complicated and difficult case,” said Shelby County District Attorney Bill Gibbons.

This case was prosecuted by the Shelby County D.A.’s White Collar Crime Prosecution Unit. 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 2007-2008 fiscal year, the department collected $11.2 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2007-2008 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.

###