MEMPHIS, Tenn — The former owner of The HM Lounge in Memphis has been granted diversion on a charge of tax fraud.
On July 13, 2023, a Shelby County Grand Jury indicted Frankel Mosley, 46, on charges of sales tax fraud and theft of property over $10,000.
During a hearing on June 27, 2024. Mosley was granted diversion on one charge of falsification of state revenue tax, according to court records. Two other charges were dismissed. Records show diversion will end in one year as long as she stays out of trouble.
Details on what led to the charges were not released by the Tennessee Department of Revenue, which announced the indictment on July 26.
“Investigations, such as this one, should warn retailers that failing to properly remit all the sales tax monies they collect is a crime,” Revenue Commissioner David Gerregano said. “The taxes collected from customers are property of the state and local governments. Customers have a right to know that the tax they pay will be remitted to the state and used for public good of Tennesseans.”
If convicted, Mosley could have faced up to six years in prison and fines of up to $16,000.
Anyone who suspects violations of Tennessee's revenue laws can call the toll-free tax fraud hot line at 800-FRAUDTX (372-8389).
