Investigations

On March 3, 2008, Raymond Smith and Henry Matt Smith pled guilty in U.S. District Court, London, Kentucky, to mail fraud and embezzlement charges. Between May 2003 and May 2006, Raymond Smith served as 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 family members rather than the entities listed on the original bids. Raymond Smith caused bids and invoices to be submitted to the county that were false and then caused the county to award contracts and issue checks to the firms named on the false bids. In order to prevent the scheme from being detected, he mailed false information to the Federal Highway Administration. Henry Matt Smith-Raymond‘‘s brother and the owner and manager of BKW Wood Products, Total Timber and Total Freight-pled guilty to embezzlement and aiding and abetting Raymond Smith in the misapplication of county funds. Henry Smith assisted his brother by providing personnel from his business to perform 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 Federal Bureau of Investigation with the assistance of the Kentucky State Auditor‘‘s Office.