Memphis Security Boss Chism Admits Tax Evasion

MEMPHIS, TN – Cedric Zimbalist Chism, the former head of Memphis Security of Tennessee, Inc. (MSOFT), has confessed to a brazen attempt to cheat the U.S. government out of hundreds of thousands of dollars. The guilty plea, announced today by Acting U.S. Attorney Lawrence J. Laurenzi for the Western District of Tennessee, marks a significant blow against tax scofflaws operating in the region.

Chism, who ran MSOFT – a security guard service with contracts across Memphis – systematically evaded paying employment taxes to the IRS for a full 12 years, spanning from 1999 to 2011. The indictment revealed a calculated effort to impede and obstruct the proper reporting and remittance of funds owed to the federal government. This wasn’t a simple oversight; it was a sustained and deliberate scheme.

The scale of the fraud is staggering. Chism personally, and through his company MSOFT, accumulated a debt of $1,688,473.45 to the IRS. The actual tax loss suffered by the government as a direct result of Chism’s actions totals $854,144.39 – money that could have funded vital public services. Sources close to the investigation indicate the scheme involved falsified payroll records and the deliberate misreporting of income.

This wasn’t a victimless crime. While the IRS ultimately recovers funds, the burden falls on American taxpayers to make up the shortfall. Chism’s actions represent a direct theft from the public purse. The U.S. Internal Revenue Service conducted the investigation, meticulously unraveling the layers of deception employed by the Memphis businessman.

Chism now faces a harsh reckoning. The obstruction charge carries a potential sentence of up to 36 months in federal prison and a hefty fine of $5,000.00. He will be sentenced on July 1, 2017, at which time a federal judge will determine the appropriate punishment for his crimes. Expect a push for maximum sentencing given the duration and magnitude of the tax evasion.

Assistant U.S. Attorney Damon Keith Griffin is leading the prosecution, determined to hold Chism accountable for his actions. The Grimy Times will continue to follow this case and report on the sentencing, bringing you the latest developments from the Western District of Tennessee. This case serves as a stark warning: attempting to evade taxes will be met with swift and severe consequences.