SEVIERVILLE, Tenn. (WATE) — A Sevier County couple could face two years of prison and fines up to $3,000 if convicted of tax evasion. William and Leah Laboy surrendered to the Special Investigations Section of the Tennessee Department of Revenue on December 6 after being indicted with felony tax evasion.

They are accused of filing false sales tax returns for Chapman’s Restaurant from January 2016 through July 2018. The Department of Revenue says they failed to send $128,872.69 in taxes to the state.

“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 the public good of all Tennesseans.”

If convicted, both William and Leah Laboy could be sentenced to a maximum of two years and fined up to $3,000. The department is pursuing this criminal case in cooperation with District Attorney Jimmy Dunn’s office. Both of the Laboys bond was set at $10,000.

Citizens who suspect violations of Tennessee’s revenue laws should call the toll-free tax fraud hotline at (800) FRAUDTX (372-8389).

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