Former Lafollette Attorney Sentenced For Federal Tax Offense

KNOXVILLE, Tenn. – Johnny V. Dunaway, 66, of Lafollette, Tenn., was sentenced on Apr. 23, 2014, by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 12 months in prison. Dunaway was also ordered to pay restitution to the Internal Revenue Service (IRS) for unpaid taxes and interest.

In December 2013, Dunaway pleaded guilty to a one-count information charging him with filing 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. In the course of its investigation, the IRS determined that Dunaway had also falsely reported his income taxes for the 2006, 2007 and 2009 tax years.

For most of his career as an attorney, Dunaway practiced law in Lafollette, Tenn. As a result of his federal tax offense, Dunaway consented to disbarment in October 2013.

This conviction is the result of an investigation by IRS-Criminal Investigation. Assistant U.S. Attorney Frank M. Dale, Jr. represented the United States.