London, Ky. -Former Knox County Judge Raymond C. Smith, 45, of Corbin, Ky., pleaded guilty today to mail fraud before United States District Court Judge Gregory Van Tatenhove.

Smith waived his right to be indicted by a federal grand jury and pleaded guilty to an Information charging him with mail fraud related to awarding county contracts when he was a County Judge Executive of Knox County.

The Information charges Smith with conducting a scheme to award contracts to straw bidders, have the work completed by firms controlled by his family, and cash or deposit county checks made out to the straw bidders. The Information also alleges that Smith created false bidding documents and invoices, and would have county fiscal court records altered to falsely indicate that certain payments had been approved.

Henry Matt Smith, 36, of Flat Lick, Kentucky, Raymond Smith's brother, also waived his right to be indicted. Henry Matt Smith waived indictment and pleaded guilty to aiding and abetting his brother Raymond in the misapplication of county funds. Henry Matt Smith pleaded guilty to a one count Information to a statute that makes it a federal crime to misapply or embezzle over $5,000 from a local government which receives over $10,000 per year in federal funds.

The Information alleges that Matt Henry Smith assisted his brother Raymond by providing personnel to perform the work secured by false bids, helping create false documents and cashing checks made out to others.

James A. Zerhusen, Acting United States Attorney for the Eastern District of Kentucky, and the FBI, jointly made the announcement today after the Smiths entered their guilty pleas.

The investigation was conducted by the Federal Bureau of Investigation and the Office of Inspector General, United States Department of Transportation. The investigation was conducted following an audit conducted by the Kentucky Auditor of Public Accounts. The United States was represented in the case by Assistant United States Attorney David P. Grise.

The Smiths are currently scheduled to appear for sentencing in United States District Court in London, Ky., in the next three months. Raymond C. Smith faces a maximum prison sentence of 20 years in prison. Matt Henry Smith faces a maximum prison sentence of 10 years in prison. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence.

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