SEVIERVILLE - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and arrest of William and Leah Laboy for tax evasion.  The Laboys surrendered to Revenue special agents at the Sevier County Detention Center on December 6.

On November 29, 2021, a Sevier County Grand Jury indicted each of the Laboys with one felony count of tax evasion for filing false sales tax returns for Chapman’s Restaurant from January 2016 through July 2018. As a result, the Laboys failed to remit $128,872.69 in taxes to the state. Bond was set at $10,000 each.

“Investigations, such as this one, should warn retailers that failing to properly remit all the sales tax monies they collect is a crime, “said Revenue Commissioner David Gerregano.  “The taxes collected from customers are property of the state and local governments at all times.  Customers have a right to know that the tax they pay will be remitted to the state and used for public good of all Tennesseans.”

If convicted, both William and Leah Laboy could be sentenced to a maximum of two years in the state penitentiary and fined up to $3,000 for the count of tax evasion.

The department is pursuing this criminal case in cooperation with District Attorney Jimmy Dunn’s office. 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 and the collection of taxes and fees associated with those laws. The Department collects about 87 percent of total state revenue. During the 2021 fiscal year, it collected $18.4 billion in state taxes and fees and more than $3.7 billion in taxes and fees for local governments. 

###