Knox County school bus contractor arrested as part of pill mill investigation

Timothy Woods (source: Blount County Sheriff's Office)

KNOXVILLE (WATE) – A school bus contractor that has worked with Knox County Schools is in federal custody, accused of taking part in the massive alleged pill mill operation revealed last week.

Timothy Woods, who is also the former Maynardville city police chief and city manager, owns Woods Bus Lines. School system officials say they have suspended the company’s contract for the rest of the school year as a result of his arrest, and the 17 service agreements have been assigned to other bus contractors.

Woods is one of 102 defendants in the investigation that led to 32 indictments.

Previous story: FBI agent testifies 2 people fatally overdosed from pills prescribed from alleged pill mill in Lenoir City

Two businesses and a home were raided as part of the pill mill investigation last week. A number of people were arrested on various charges.

The primary focus of the investigation is Sylvia Hofstetter, 51, who is charged with conspiring with other pain clinic operators or sponsors of pill shopping organizations to distribute oxycodone, and to launder the proceeds generated by those clinics.

Previous story: Knoxville woman, multiple others indicted in pill mill operation

Hofstetter is accused of being responsible for distributing enough oxycodone to generate revenue of at least $17.5 million between April 2011 and March 2015.

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