On Monday afternoon, Covington business owner David Whaley pleaded guilty to more than a dozen charges related to a failure to pay sales and use taxes and falsifying vehicle registrations.
Charged in a 98-count indictment in November, Whaley pleaded guilty to theft of property over $10,000, failure to remit collected sales tax, tax evasion, falsifying vehicle registration and falsification of a tax-exempt form.
Whaley was accused of failing to pay the sales tax he collected from customers at Whaley’s Towing and providing false documents when he registered vehicles at the Tipton County Clerk’s Office.
“The Department of Revenue has always been committed to making sure Tennessee’s tax laws and procedures are applied uniformly to ensure fairness,” Revenue Commissioner David Gerregano said. “We can never allow individuals engaged in fraudulent tax activity to have a competitive advantage over honest Tennesseans.”
Whaley registered for a sales tax account after the search warrant was conducted at his home and business in August 2018. The business is now also owned by his wife, Ashley.
He is set to be sentenced on April 29. His lawyer is asking for probation by way of diversion, meaning after 3-6 years of probation he could be eligible for diversion.
Ordered to pay $89,264.49 in restitution, Whaley paid $53,122.83 Monday to go with the $37,306 in cash seized during the search warrant.
The department pursued the criminal case in cooperation with District Attorney Mark Davidson’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).
