Kenneth Francis Lee Sentenced To 30 Months In Federal Prison For Tax Evasion

KNOXVILLE, Tenn. - On June 27, 2019, Kenneth Francis Lee, 48, of Sevierville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, U.S. District Judge, to serve 36 months in federal prison for tax evasion and willful failure to file tax returns.  Upon his release from prison, Lee will be supervised by the U.S. Probation Office for 3 years.  Lee was also ordered to pay $372,531 to the Internal Revenue Service (IRS) in restitution. 

Lee waived indictment by a federal grand jury and pled guilty to a bill of information on January 31, 2019.  Lee admitted that he disguised income from his businesses, TNDSYS, LLC and Tennessee Data Systems, in order to evade the payment of tax debts that he owed to the IRS.  Lee further admitted that he willfully failed to file personal income tax returns in 2014, 2015, and 2016.

This investigation was conducted by the Federal Bureau of Investigation (FBI) and the Criminal Investigation Division of the IRS.  Assistant U.S. Attorney Bart Slabbekorn represented the United States in court proceedings.