CAMPBELL COUNTY—Attorney Johnny V. Dunaway, 65, pleaded guilty Monday in the U.S. District Court for the Eastern District of Tennessee in Knoxville, to filing a false tax return. Sentencing has been set for Apr. 23. Dunaway faces a three-year prison term. In addition, he may be ordered to pay restitution to the Internal Revenue Service for unpaid taxes.
According to a one-count information filed by the U.S. Attorney in October 2013, Dunaway submitted a false tax return for the 2008 tax year. In conjunction with his guilty plea, Dunaway admitted that his 2008 return failed to declare truthfully the business income that he had received from his law practice.
This conviction is the result of an investigation by the Internal Revenue Service. Assistant U.S. Attorney Frank M. Dale, Jr. represented the United States.