Papa John's Pizza franchise owner indicted on state tax fraud

Jackson owner with Middle Tennessee stores surrendered to state revenue agents today as part of the state's largest-ever tax fraud case in terms of dollar amount -- nearly $1.1 million

Email | Print By Richard Lawson

09-07-2006 3:37 PM — A Papa John's Pizza franchise owner turned himself in to Tennessee Department of Revenue agents today as part of the largest tax fraud case in Tennessee history.

Randall L. Malin, chief manager and member of First Equity Ventures in Jackson, is accused of failing to submit sales taxes of nearly $1.1 million collected at its Papa John's stores in Dickson, Paris, McMinnville, Tullahoma, Lawrenceburg, Covington and Martin. Emily Richard, the revenue department's spokesperson, said the time period spans 1997 to 2004. On Tuesday, a Madison County Grand Jury indicted Malin on charges of filing false and fraudulent tax returns for the company's Dickson store and for failing to file state sales tax returns for the other stores.

If Malin is convicted, he could see a good bit of time in the state penitentiary as well as pay hefty fines in addition to paying the taxes plus interest. He faces a maximum of two years for each of seven Class E felony counts, a maximum six years for each of six Class B felony counts, and a maximum of 12 years for the single Class C felony count of theft of over $10,000. In all, the fines could total $196,000.

It is unclear whether Malin's company still owns the Papa John's Pizza stores. The Tennessee Department of State has the company name listed as inactive. A spokesman with Louisville-based Papa John's Pizza International Inc. couldn't be immediately reached for comment and spokesperson Richard couldn't shed more light on Malin's company because of the investigation.