State

Knox County brothers sentenced in tax fraud case

A Knox County man who helped run a scheme to file fraudulent tax returns has been sentenced to six years and 10 months in federal prison.

Brian Hamilton also is liable for $221,729 in restitution to the Internal Revenue Service as part of the sentence.

U.S. District Judge Amul R. Thapar also sentenced Hamilton’s brother, Billy Ray Hamilton, to five years in prison and ordered restitution of $272,808.

The brothers pleaded guilty to conspiracy, wire fraud and identity theft. They admitted that in 2011 and 2012, they used information from customers at the Bailey Switch Pawn Shop and others to file fraudulent tax returns, then took the refunds.

Patsy Carnes and Dianna Hill also pleaded guilty in the case. Thapar sentenced Carnes to one year and 10 months in prison and Hill to a year and four months.

Thapar sentenced the Hamiltons on Aug. 12.

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