Sources: FBI asks questions about Knox County Mayor Tim Burchett; mayor says ‘no truth to any of it’

Four people tell the USA TODAY NETWORK - Tennessee federal agents have asked them questions about Knox County Mayor Tim Burchett.

It is not clear what the FBI is investigating and whether Burchett, a Republican running for Congress in East Tennessee, is the target of a federal investigation. The people interviewed said FBI agents asked about issues ranging from possible tax evasion to potential bribery and a county contract.

When reached Thursday, Burchett said, “No truth to any of it.” On Friday, after this story's publication, the mayor issued a lengthy statement casting doubt on the reporting and stating he does not believe there is an FBI inquiry.

► More: Knox County mayor: 'I do not believe such an (FBI) inquiry exists'

The USA TODAY NETWORK - Tennessee obtained a copy of a document drafted by an attorney that states Burchett’s ex-wife, Allison, was a confidential informant for the FBI, with the code name “Carbon,” since 2012.

Allison Burchett said she began working with the FBI in 2012 but declined further comment.

“I’m sorry I cannot comment on an ongoing FBI investigation,” she said.

The three other sources requested anonymity for fear of reprisals.

Federal investigators conducted several interviews this year, including as recently as October, sources said. The interviews were conducted in various locations, including the FBI’s Knoxville headquarters.

One source said an IRS agent also has been involved in the inquiry.

The USA TODAY NETWORK - Tennessee obtained copies of a 2017 email exchange between an FBI agent and the attorney of one of the sources questioned this year. The attorney provided the agent documents and other records, according to the email.

The sources would not elaborate on what other issues the agents asked about for fear of jeopardizing the investigation.

Burchett said Friday he was not aware of any "alleged inquiry" until contacted Thursday by a reporter. He called the story and the motives behind it a “smear campaign” by his political enemies and said his integrity is being questioned.

“I’ve never been contacted by the FBI concerning any of this stuff. I really don’t think there’s any such inquiry,” he told the USA TODAY NETWORK - Tennessee.

An FBI spokesman said Thursday, per policy, the FBI does not confirm or deny the existence of an investigation. A spokeswoman for the U.S. attorney's office in East Tennessee on Friday also said she could not confirm or deny the existence of any investigation.

‘It’ll blow Knoxville wide open’

One source, who is a Knoxville-based businessman, said he was questioned about a county contract.

Another source, also a businessman, said agents asked questions about Tim Burchett in addition to questions about a county contract.

Three sources said they anticipate the agents moving forward with their probe after the conclusion of the federal government’s case against Pilot Flying J. Some agents involved in the Pilot case questioned some of the people about Tim Burchett.

The former president and three former employees of the massive truck stop chain are in the midst of a fraud trial, in which U.S. attorneys accuse them of an illegal rebate scheme. The investigation has already produced 14 guilty pleas.

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The trial began in early November and could continue into early next year. Its conclusion potentially frees up authorities to move forward on the case involving those questioned about Tim Burchett.

“I’m not sure what they’re charging, but it’s coming pretty soon,” one source said. “This is very, very serious. It’ll blow Knoxville wide open.”

Burchett issues in the past

Tim Burchett was elected county mayor in 2010 after serving 16 years as a representative and senator in the Tennessee General Assembly.

In 2012, Burchett faced a campaign finance inquiry after a Knoxville News Sentinel investigation revealed that about $20,000 was transferred from his mayoral campaign account into the Burchetts’ household checking account and campaign disclosure documents were falsified to hide the transfers.

Tim Burchett had attested to the accuracy of the campaign disclosure forms. But he blamed his wife for the misappropriations. Allison Burchett said she was a campaign novice who only did what her husband instructed her to do.

The couple was in the midst of a contentious divorce when the story broke.

The Tennessee Registry of Election Finance investigated the matter, an inquiry that could have resulted in tens of thousands of dollars of fines. But it ultimately took no action after the mayor filed 11 amended financial disclosures and submitted an affidavit saying his wife had used the money on clothes, shoes, spa visits and other personal expenses.

Before his marriage, in 2006, Tim Burchett, then a state senator, failed to report six political action committee checks totaling $3,300. The Registry of Election Finance didn't fine him then, either.

Two years later, though, while still a state senator, he was fined $250 for failing to disclose three PAC contributions that totaled $1,500.

In an unrelated case, Allison Burchett pleaded guilty in May to several misdemeanor charges related to unlawfully accessing computer accounts of the estranged wife of a man with whom Allison Burchett had a relationship.

Reporter Tyler Whetstone contributed to this story.

Reach Joel Ebert at jebert@tennessean.com or 615-772-1681 and on Twitter @joelebert29. Reach Dave Boucher at dboucher@tennessean.com or 615-259-8892 and on Twitter @Dave_Boucher1.