Fayetteville's Serapio (Jose) Granados, owner of Stonebridge Restaurant and the former Fried Tomato Restaurant in Fayetteville, has been indicted and arrested after an investigation by the Tennessee Department of Revenue's Special Investigations Section.
Revenue special agents arrested Granados, 48, at his business. Bond was set at $10,000.
On Tuesday, the Lincoln County Grand Jury indicted Granados on 58 Class E felony counts of filing false tax returns, one Class B felony count of theft over $60,000, and one Class E felony of tax evasion. The indictments allege Granados falsified sales tax returns submitted to the Tennessee Department of Revenue and failed to remit collected sales tax as required by law.
“The Department of Revenue promotes voluntary taxpayer compliance by educating taxpayers, aggressively pursuing criminal sanctions and demanding accountability when taxpayers engage in fraudulent activity," Revenue Commissioner David Gerregano said. "This indictment underscores the Department's ongoing efforts to enforce Tennessee's tax laws."
If convicted, Granados could be sentenced to a maximum of two years in the state penitentiary and fined up to $3,000 for each Class E felony and a maximum of 12 years and fined up to $25,000 for the Class B felony.
The Department is pursuing this criminal case in cooperation with District Attorney Robert J. Carter’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, as well as the collection of taxes and fees associated with those laws. The Department collects about 87 percent of total state revenue. During the 2018 fiscal year, it collected $14.5 billion in state taxes and fees and more than $2.8 billion in taxes and fees for local governments.