In a significant legal development out of Nashville, Tennessee, Richard Davis, a former partner in the Pie Five restaurant chain across middle Tennessee, has been convicted of theft and tax evasion. The conviction follows an intensive investigation by the Tennessee Department of Revenue’s Special Investigations Section.
On Thursday, Davis entered a guilty plea before Judge Cheryl Blackburn, acknowledging his failure to remit sales tax collected from customers. This breach of fiscal responsibility led to Blackburn sentencing Davis to a decade of probation and ordering him to pay restitution amounting to $474,785.11.
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David Gerregano, the Revenue Commissioner, emphasized the gravity of Davis’ actions, stating, “It is a felony for retailers to collect sales tax from the public and then fail to remit it to the state. It is a breach of the public trust.” Gerregano assured that the Department of Revenue remains committed to pursuing criminal sanctions against such fraudulent activities to ensure accountability.
This case was brought to a close through the collaborative efforts of the Department of Revenue and the office of District Attorney Glenn Funk. The pursuit of justice underscores the state’s commitment to protecting the integrity of its revenue systems and upholding the public trust.
The Department of Revenue, tasked with administering state tax and motor vehicle laws, plays a pivotal role in the financial health of Tennessee. Collecting approximately 87 percent of the state’s total revenue, the department reported nearly $22 billion in state taxes and fees, alongside over $4.7 billion for local governments during the fiscal year 2023. This case serves as a stark reminder of the legal and moral obligations businesses have in their financial dealings with the state and its citizens.
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