Kentucky man pleads guilty to federal tax crimes

WASHINGTON, D.C. (WTVQ) –  Kentuckian Brian Hamilton pleaded guilty in U.S. District Court for the Eastern District of Kentucky on Wednesday, to charges of defrauding the United States, wire fraud, and aggravated identity theft.

According to court reports, Hamilton admitted that during the years of 2011 and 2012 he, along with his brother, Billy Ray Hamilton, Patsy Carnes and Diana Hill filed false tax returns from the Bailey Switch Pawn Shop in Knox County, Kentucky.

According to the plea agreement, the Hamiltons prepared and filed at least 31 tax returns with the IRS that contained false information regarding wages, self-employment income, expenses, filing statuses and dependents.

In some cases, the Hamiltons filed false tax returns without the knowledge or permission of the taxpayers named on the returns.  To aid in the preparing and filing of false tax returns, Hill obtained personal identifying information and Carnes was responsible for keeping files of that information and providing it to the Hamiltons.

Hamilton faces a statutory maximum sentence of 10 years in prison for the conspiracy charge and 20 years in prison for the wire fraud charge.  He also faces a mandatory two year prison term for the aggravated identity theft charge, which will be in addition to any other term of imprisonment he receives.  Hamilton also faces financial penalties, supervised release and restitution.

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.

Categories: News, State News

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