Knox County Resident Pleads Guilty to Tax Charges

KNOXVILLE -- The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led Kathea Gissele Andrade Argueta to plead guilty to theft and tax evasion charges.

On April 8, Judge Scott G. Green accepted Kathea Gissele Andrade Argueta's guilty plea to theft over $60,000 and twelve counts of tax evasion. These charges stem from Argueta's failure to remit collected sales tax on behalf of Fiesta Garibaldi Mexican Restaurant and Tequila Bar and Anafres Grill & Market Mexican and Latin Cuisine. Argueta was sentenced to 10 years of confinement and suspended to supervised probation with credit for time served. She was ordered to pay $187, 543.70 in restitution.

"It is a felony for retailers to collect sales tax from the public and fail to remit it to the state," Revenue Commissioner David Gerregano said. "The Department of Revenue pursues criminal sanctions to provide accountability for these actions."

The department pursued this criminal case in cooperation with District Attorney General Charme Allen'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 2025 fiscal year, it collected over $21 billion in state taxes and fees and more than $5 billion in taxes and fees for local governments. To learn more about the department, visit https://www.tn.gov/revenue .

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