KNOXVILLE, Tenn. — A Sevier County couple who operate a restaurant are accused of filing false sales tax returns and failing to hand over some $128,872 in proceeds to the state, records show.
A Sevier County grand jury returned the two-count presentment against William and Leah Laboy on Nov. 29.
The Laboys surrendered Monday to state revenue special agents at the Sevier County Detention Center.
Daughter Megan Laboy told WBIR her parents already had paid back the money with interest.
"Now it's all fixed and they've paid it back," she said.
According to the state, the Special Investigations Section of the Tennessee Department of Revenue looked into the Laboys' business dealings.
Documents state the couple filed the false returns from January 2016-July 2018. Megan Laboy said for every year since her parents have been current in paying their obligations.
All sales tax due should have been filed with the state of Tennessee's revenue commissioner. State Department of Revenue officials are listed as witnesses in the indictment and they investigated the case.
Conviction of the felony could result in up to two years in prison for each person, according to the state.
Chapmans Restaurant is in Seymour. The "family restaurant" Facebook page states it opened in 2015.
Megan Laboy said her parents have previously operated a restaurant but Chapmans ended up being a much bigger operation.
"They are good people," she said.