Final defendant pleads guilty in federal tax fraud case

The last of four Knox County individuals indicted on federal charges of conspiracy to commit tax fraud pleaded guilty Tuesday in U.S. District Court in London.

Thirty-eight-year-old Brian Hamilton pleaded guilty to conspiracy to defraud the government, wire fraud and aggravated identity theft.

Hamilton admitted to preparing fraudulent tax returns using personal identification information belonging to customers at the Bailey Switch Pawn Shop, which was provided by co-defendants Diana Hill and Patsy Carnes.

The money was routed to bank accounts established by Carnes using the personal information.

Hamilton faces a maximum prison sentence of 10 years on the conspiracy charge and 20 years on the wire fraud charge.

In January, Carnes and Hill each pleaded guilty to one count of conspiracy to defraud the United States with respect to claims. On April 20, Billy Ray Hamilton, pleaded guilty to conspiracy to defraud the United States, wire fraud and aggravated identity theft for his role in the scheme. He is scheduled to be sentenced on Aug. 2.