Knox duo sentenced in federal tax fraud conspiracy
Two Knox County women have been sentenced in U.S. Federal Court to serve prison time.
Patsy Carnes and Diana Hill were sentenced to 22 and 16 months respectively in prison, respectively for activity from 2011-2012 while working at the Bailey Switch Pawn Shop in Knox County. According to court documents, they conspired with Billy Ray Hamilton and Brian Hamilton to submit false federal tax returns, sometimes intentionally using personal identifying information without the permission of the named taxpayer.
According to a press release from the U.S. Department of Justice, “To advance the conspiracy, Hill and Carnes received and collected taxpayer information, including personal identifying information and provided that information to Billy Ray Hamilton and Brian Hamilton for use in the preparation of false tax returns. Carnes received the fraudulently obtained tax refunds and opened as the sole signature authority of bank accounts into which she knew that some of the fraudulently obtained tax refunds would be deposited.”
U.S. District Judge Amul R. Thupar of the Eastern District of Kentucky ordered Hill to serve three years of supervised release and pay restitution to the Internal Revenue Service (IRS) in the amount of $226,652.89, and also ordered Carnes to serve three years of supervised release and pay restitution to the IRS in the amount of $226,652.89.