Nags Head Businessman Jailed on State Tax Charges
RALEIGH -- A Dare County man pleaded guilty to felony tax charges
Thursday in Wake County Superior Court.
Gregory Robert Hall, 35, of 126 Marina Drive, Nags Head, entered
guilty pleas to seven counts of embezzling the North Carolina sales
tax and seven counts of embezzling the Dare County sales tax. Hall
was the owner of Island Tobacco, a retail business that sells tobacco
products and accessories. The business, which is currently located
in the Croatan Centre at 4711 S. Croatan Highway, Nags Head, was previously
located in the Outer Banks Mall and in the Timbuck II Shopping Village
The state’s evidence showed that from Sept. 1, 1998 through
August 31, 2004, a total of $108,239.95 in North Carolina and Dare
County sales tax was charged and collected from the customers of Island
Tobacco however it was not remitted to the Department of Revenue.
The evidence further revealed that Hall misapplied the funds by using
them to operate the businesses and to pay personal living expenses.
In addition, the state introduced into evidence that Hall was previously
convicted of misdemeanor failure to file and failure to pay state
and county sales tax in April 1998 and was placed on probation. Within
six months of that conviction, Hall began the embezzlement that resulted
in the current sentence.
Superior Court Judge James C. Spencer, Jr. sentenced Hall to four
consecutive 17-month minimum, 21-month maximum prison terms. The sentence
was suspended and Hall was placed on supervised probation for 60 months.
He was ordered to serve a 120-day active sentence as a special condition
of his probation. Hall paid $30,000 to the Department of Revenue prior
to his plea and was ordered to pay $78,239.95 in restitution within
ten days. He was also ordered to comply with all state tax laws and
enter a drug assessment and treatment program while on probation.
The charges against Hall resulted from an investigation by the Elizabeth
City Revenue Office and the Department of Revenue’s Criminal
Investigations Division. As a result of the search relating to his
arrest on the tax charges, Hall faces addition charges for felony
possession of marijuana and possession of drug paraphernalia.
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Last modified on:
10/31/07 03:43:55 PM