Tennessee – An investigation conducted by the Tennessee Department of Revenue has resulted in a guilty plea involving theft and tax evasion charges connected to restaurant sales tax collections.
Officials said Kathea Gissele Andrade Argueta pleaded guilty on April 8 before Judge Scott G. Green to theft over $60,000 and twelve counts of tax evasion. The charges stemmed from allegations that Argueta failed to remit collected sales taxes on behalf of Fiesta Garibaldi Mexican Restaurant and Tequila Bar and Anafres Grill & Market Mexican and Latin Cuisine.
Authorities said Argueta was sentenced to 10 years of confinement, suspended to supervised probation with credit for time served. She was also ordered to pay $187,543.70 in restitution.
Revenue Commissioner David Gerregano said it is a felony for businesses to collect sales tax from customers and fail to remit it to the state, adding that the department pursues criminal charges to ensure accountability.
The case was prosecuted in coordination with the District Attorney General’s Office. Officials encouraged anyone who suspects tax fraud to report it through the state’s tax fraud hotline.
The Tennessee Department of Revenue is responsible for administering state tax and motor vehicle laws and collects the majority of state revenue, along with significant local tax collections annually.