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Adult Owner Indicted on Tax Fraud

Nashville- Jerry C. Pendergrass, owner of various adult entertainment establishments in Nashville and elsewhere, has been indicted on two counts of conspiracy to defraud the United States, one count of income tax evasion, and eight counts of filing false tax returns.

Also charged in the indictment were former IRS Agent James M. Hammonds of Cleveland, Tenn., and Nashville attorneys Alan L. Saturn and Alan D. Mazer.

The indictments were announced by James K. Vines, U.S. attorney for the Middle District of Tennessee, and Cleve Daniels, special agent in charge for the IRS, Nashville Field Office.

According to the indictment, Pendergrass owned or was involved in various adult bookstores in the Clarksville, Nashville and Chattanooga areas that operated under business names including Southern Secrets, Midnite Video, Broad St Video, The Outer Limit of Nashville, Video Express, I-40 Bookstore, and Galerie Erotique. Pendergrass was also the sole shareholder of 822 Corporation, doing business as Metro News, also known as World’s Largest Adult Bookstore.

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