This amount allowed for an even three-way split between Hunting, James Ivey and Melinda Ivey. The defendants continued the practice of inflating billable miles by 158 miles per trip, even after the reimbursement rate was increased to $2.10 per mile in January 2007. However, J&M paid its drivers for the actual miles they drove, not the number of miles for which J&M invoiced Tracker.
James Keith Ivey, 53, and his wife, Melinda Kay Ivey, 43, both of Lebanon, were sentenced by U.S. District Judge Gary A. Fenner on Friday, May 10, 2013. James Ivey was sentenced to five years and 10 months in federal prison without parole. Melinda Ivey was sentenced to two years and six months in federal prison without parole. The Iveys are jointly and severally liable to pay $797,325 in restitution, according to a from Dickinson’s office.
According to KY3, “In addition to the fraud conspiracy, James and Melinda Ivey were found guilty of a money-laundering conspiracy related to the cash payments to Hunting, which involved the proceeds of the mail and wire fraud conspiracy. Approximately every two weeks James Ivey, often accompanied by Melinda Ivey, met Hunting (usually in a parking lot in Lebanon) and paid Hunting his share of the proceeds generated from the fraudulent invoices, in cash. Hunting claimed some of those payments on his federal income tax return as income from a catering business, which was false. The Iveys claimed the payments represented a percentage of revenue generated by two trucks they claimed Hunting owned and was leasing to J&M, which was also false.”