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Johnson City Family Skate Center owner pleads guilty to tax evasion

Johnson City Press • Dec 18, 2017 at 2:46 PM

A Johnson City business owner recently pleaded guilty to tax evasion and falsifying his tax returns.

Nellis Randolph Medley owns Johnson City Family Skate Center on State of Franklin Road and Hot Wheels Family Skate Center in Greeneville.

Friday in Washington County Criminal Court, Judge Lisa Rice accepted Medley’s guilty plea to two counts of tax evasion and two counts of falsification of tax returns. Rice placed Medley on four years’ supervised probation and ordered him to pay $40,000 in restitution to the state. A Washington County grand jury previously indicted Medley on tax evasion, falsification of tax returns, and theft charges.

Medley, 2023 Sundale Road, was arrested in July following accusations of cheating on his taxes over a two-year period and keeping more than $60,000 for himself instead of paying that money to the state.

The presentment, returned by the grand jury July 12, accused Medley of falsifying the Johnson City skating business’ tax returns between January 2013 and December 2015. Investigators said Medley failed to pay $48,714.98 in taxes to the state in connection with the skating business on West State of Franklin Road.

The document also accused Medley of falsifying tax returns for the Greeneville skating rink between February 2014 and December 2015. The amount he was accused of keeping from the state on those returns was $15,101.85.

“Our state’s tax structure depends on voluntary taxpayer compliance to remit money collected from customers,” Tennessee Revenue Commissioner David Gerregano said Monday in a news release. “Taxpayers who fail to remit collected taxes violate the public trust and the criminal laws of Tennessee. This guilty plea highlights our rigorous and impartial administration of the state’s tax laws.”

The Department of Revenue pursued the case in cooperation with District Attorney General Tony Clark’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).

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