Brother of Former Judge/Executive Sentenced to 10 Months Imprisonment

Office of Inspector General

Title:	Brother of Former Judge/Executive Sentenced to 10 Months Imprisonment
Date:	October 15, 2008
Type:	Investigation
Summary:	On October 15, 2008, Henry Matt Smith was sentenced in U.S. District Court, London, Kentucky, to 10 months imprisonment and 3 years supervised release for embezzlement and aiding and abetting his brother, Raymond Smith, former Judge/Executive, in the misapplication of county funds. In August 2008, Mr. Raymond Smith was sentenced to 30 months imprisonment, and 3 years supervised release, and ordered to pay $110,000 in restitution for mail fraud. Both brothers are jointly liable for the restitution. Between May 2003 and May 2006, Mr. Raymond Smith held the position of Judge/Executive––a position that allows fiscal control and approval of county expenses. During this time, he devised a scheme for his family businesses to fraudulently obtain government money through county contracts by awarding the contracts to straw companies which were controlled by Raymond Smith and his family members, rather than the entities listed on the original bids. Mr. Henry Matt Smith––Raymond’s brother and the owner and manager of BKW Wood Products, Total Timber and Total Freight, assisted his brother by providing personnel from his business to perform some of the work secured by false bids, helping create false documents, and cashing checks generated by the fraud scheme. This case was worked jointly with the FBI with the assistance of the Kentucky State Auditor’s Office.