South Carolina Department of Revenue (SCDOR) agents today arrested an Orangeburg businessman and charged him with 12 counts of failing to pay taxes, file a return and keep records after not reporting millions of dollars in purchases on Excise Tax and Sales Tax returns.

John W. Ewing III, 42, of Orangeburg, is the owner of Mae Etta Distribution, LLC, seller of other tobacco products (OTP) and other novelty items, based in Orangeburg County. OTP can include items such as cigars, chewing tobacco, pipe tobacco, and snuff.

Ewing used the SCDOR issued Wholesale License to Purchase, Sell, and Distribute Manufactured Tobacco in Georgia to purchase OTP tax free. He then imported his purchases into South Carolina without paying the required Excise Tax, according to warrants.

Ewing then sold OTP at retail, primarily as a vendor at a local flea market. He could not provide SCDOR agents with the name of any customers who would be considered distributors, which would have allowed his sales to be tax exempt.

Ewing failed to timely file Excise Tax and Sales Tax returns from August 2014 through 2019. In total, he failed to timely report $5,788,300 of gross purchases on Excise Tax returns and failed to remit $289,415 of Excise Tax. Also, Ewing failed to timely report $6,291,221 of gross proceeds on Sales Tax returns and failed to remit $377,473 in state Sales Tax.

If convicted, Ewing faces a maximum sentence of one year in prison and/or a fine of $10,000 per count. He is being held in the Orangeburg-Calhoun Regional Detention Center pending a bond hearing.

The SCDOR is committed to the fair administration of tax laws. By taking enforcement action against noncompliant taxpayers, the Department seeks to prevent unfairly increasing the tax burden on those who do comply. 

If you suspect or know of anyone or a business that has committed a state tax crime, such as tax evasion or tax fraud, contact SCDOR Criminal Investigation and submit a Tax Violation Complaint Form (CID-27) to criminalinvestigation@dor.sc.gov or mail it to:

South Carolina Department of Revenue

Attn: Fraud Advisor

181 East Evans Street, Suite 5

Florence, SC 29506

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