A Jackson County couple have been sentenced in a $9 million family scheme to defraud the federal government.

U.S. District Judge John T. Copenhaver Jr. sentenced Donald Smith of Sandyville this Wednesday to 18 months in prison and fined him $5,000.

The Smith's were heirs to the holdings of late businessman Carl Smith.

Smith's wife Judith received three years' probation and must perform community service.

Federal prosecutors said the family defrauded the federal government by diverting money from family owned businesses to themselves.

Donald Smith's brother and nephew were sentenced in January for their roles in the fraudulent scheme.

Court records indicate the Smith's lived lavishly using the company money.

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