FLORIDA SALES TAX ARREST – PALM BEACH BBQ & SEAFOOD OWNER
June 5, 2026 | By James H. Sutton, Jr., CPA, Esq.
Another Florida restaurant owner is learning the hard way that sales tax is not a line item you can borrow from. Derrick Marcel McCray, 63, of Riviera Beach, the longtime owner behind the well-known McCray's Backyard BBQ & Seafood in Mangonia Park, was taken into custody on June 3, 2026, and now faces a first-degree felony charge and up to 30 years in prison. According to a probable cause affidavit from the Florida Department of Revenue, McCray was the sole owner and managing member of Derrick Marcel Ventures, LLC, the entity doing business as McCray's Backyard BBQ & Seafood. Investigators allege the business filed sales tax returns showing it collected $150,503.16 in sales tax from customers between April 2022 and March 2024, but remitted only $28,612.22 of it to the state — leaving an alleged shortfall of $129,929.56. The Department states McCray was contacted multiple times about the outstanding liability before the arrest. McCray has pleaded not guilty, is being represented by the Palm Beach County Public Defender's Office, and is awaiting his next court date. If convicted, he faces up to 30 years in prison and a $10,000 fine.
What makes this case sting is how common the fact pattern is. Most business owners would be shocked to learn that failing to remit even $301 of collected-but-not-remitted sales tax is a felony carrying up to 5 years in prison. Once the unpaid amount crosses $20,000, it becomes a second-degree felony punishable by up to 15 years. Cross $100,000, as the state alleges happened here, and it becomes a first-degree felony punishable by up to 30 years — the most serious classification of the theft-of-state-funds statute short of a life felony. The law does not care whether the business was struggling, whether the money went to payroll or rent instead of the state, or whether the owner fully intended to catch up next month. Sales tax is a trust fund tax. The moment a business collects it from a customer, that money legally belongs to the State of Florida, not the business. Spending it — even to keep the doors open and employees paid — is treated as theft, and unlike most other business debts, it cannot be discharged in bankruptcy.
Our law firm has represented Florida business owners before the Department of Revenue for more than 30 years, including over a thousand sales tax criminal investigations and post-arrest representation with state attorneys' offices and in court. Restaurants are one of the toughest industries to run profitably, and we have seen this exact story play out more times than we can count: a cash-flow crunch, a decision to “just this once” hold back the sales tax, and then a year or two later, a criminal investigator at the door. If your business, or a client's business, has fallen behind on Florida sales tax — or if a Department of Revenue criminal investigator has already made contact — the time to get experienced counsel involved is now, not after an arrest.
About the Author
James H. Sutton, Jr., CPA, Esq. is a State and Local Tax (SALT) attorney and Shareholder at the Law Offices of Moffa, Sutton & Donnini, P.A. He has been a licensed Certified Public Accountant since 1994 and a member of The Florida Bar since 1998. Since 2002, Mr. Sutton has served as an Adjunct Professor of Law at Stetson University College of Law, teaching State and Local Tax, and also teaches Sales and Use Tax at Boston University School of Law's LLM in Taxation program. If you have any questions, then Mr. Sutton has a FREE INITIAL CONSULTATION policy. He can be reached directly at 813-775-2131 or JamesSutton@FloridaSalesTax.com.
About the Firm
The Law Offices of Moffa, Sutton & Donnini, P.A. is a Florida law firm that practices almost exclusively in the area of Florida state and local tax (SALT) controversy, with offices in Tampa, Fort Lauderdale, and Tallahassee. Collectively, the firm's attorneys bring over 200 years of combined experience handling Florida sales tax audits, criminal investigations, protests, and litigation. Learn more at www.FloridaSalesTax.com.
Additional Resources
Florida Sales Tax Criminal Investigations: When Sales Tax Experience Matters, published June 24, 2026, by James H Sutton, Jr, CPA, Esq.
Florida Sales Tax Audits of Convenience Stores, published July 14, 2026, by James H Sutton, Jr, CPA, Esq.
Florida Sales Tax Voluntary Disclosure: The Best Way to Clean Up a Florida Sales Tax Problem, published May 26, 2026, by James H Sutton, Jr, CPA, Esq.
FLORIDA SALES TAX ARREST – FORT MYERS SMOKE SHOP, published October 11, 2025, by James H Sutton, Jr, CPA, Esq.
© Copyright 2026. James H Sutton, Jr. All rights reserved.