EXTRA CONTENT: Knox Co. Attorney reprimanded for being pawn in money laundering scheme

To read the complete Supreme Court decision, click here

A Knox County official received a public reprimand by Kentucky’s highest court late last week.

In a decision returned on Thursday, the Kentucky Supreme Court publicly reprimanded Knox County Attorney Charley Greene Dixon Jr. The Court overturned an Inquiry Commission’s July 2008 decision, which found Dixon not guilty.  The charges involved a money laundering scheme which sent former Knox County Judge/Executive Raymond Smith to prison.

"The decision had been favorable all the way up until the Supreme Court one came down and I respect the Supreme Court’s authority. I respect the opinion. That’s basically the way I feel about it," Dixon said.

In their ruling, the Court stated: "Dixon’s actions had the effect of facilitating Raymond Smith’s money laundering scheme. Two of the checks were drawn on Knox County. So Dixon’s actions had the effect of defrauding the county that Dixon represented as county attorney," the court stated in their decision."

In July 2008, Dixon was investigated by the Inquiry Commission and found not guilty of misconduct regarding his attorney escrow account.

The commission alleged Dixon received checks from businesses owned by brothers Raymond and Matt Smith, put the checks in his escrow account, then distributed the cash value of the checks to both Smiths’ wives at the instruction of Raymond Smith, according to the document

However, the Kentucky Supreme Court decided to review the trial commissioner’s decision. Four years later, the Court has disagreed with the not guilty decision by the Commission.

The court found Dixon was guilty of violating SCR 3.130-1.15(b) by receiving more than $85,000 in checks made payable to specific businesses, making no effort to notify those businesses that he had received those funds, then paying the funds to a third party, the decision stated.

Smith laundered money through various accounts, including Dixon’s escrow account, according to the document.

Between February and June 2005, Dixon deposited 11 checks into his attorney escrow account at Raymond Smith’s request.

Two of the checks Dixon deposited in that account were from the Knox County Road and Bridge fund.

The supreme court did uphold the commission’s other not guilty verdict and agreed that Dixon did not violate SCR 3.130-8.3(c). A guilty verdict on this charge could have cost Dixon his license to practice law.

In fact, Dixon’s innocence in the money laundering scheme was vehemently reiterated by the court because he did not personally benefit from depositing and distributing the checks.

"The trial commissioner viewed Dixon as extremely naive and trusting, lamenting the fact that Dixon failed to recognize several serious warning signs," the document stated. "And there is no evidence that Dixon engaged in the Smiths’ money laundering scheme. Rather, it appears that Dixon was a pawn in the Smiths’ criminal conduct."

As part of the decision, Dixon was ordered to pay all costs associated with the disciplinary proceeding, which totaled $1,870.67.
"It’s been reviewed on every level and I’ve been cleared," Dixon said.