FBI Expediting TN House Corruption Investigation

Photo: Speaker of the House Cameron Sexton is one of several lawmakers and legislative staff members to be supoenaed as part of an investigation but he says there’s nothing unusual in the action. Photo Credit: John Partipilo

By Sam Stockard [Tennessee Lookout -CC BY-NC-ND 4.0] –

It wouldn’t be shocking to see indictments come up before the Legislature adjourns in late April.

Sexton and state Rep. Esther Helton, R-East Ridge, both confirmed Thursday they are to go before the grand jury early this week. Helton told the Tennessee Lookout she believes she was ordered to show up because she used a phony New Mexico-based company called Phoenix Solutions for constituent mailers.

Although 10-12 people are believed to have been subpoenaed as part of the federal investigation into the use of the bogus company, reporters have been able to find only three who would admit it this week, including Sexton, Helton and Rep. Bud Hulsey, R-Kingsport. Rep. Paul Sherrell, R-Sparta, and Rep. Jason Zachary, R-Knoxville, would not comment, though Zachary repeatedly said, “I know what you know,” which isn’t nearly as much as the feds know.

Zachary did acknowledge being questioned by federal agents more than once, because he used former House Speaker Glen Casada for consulting work, as did Hulsey. Others admitted being questioned, too, but not subpoenaed.

NewsChannel5 reported Thursday that Zachary was subpoenaed, but he wouldn’t confirm it. The Knoxville Republican flipped his vote in the April 2019 voucher vote with the understanding Knox County Schools would be removed from the bill.

Connie Ridley, director of Legislative Administration, also confirmed Thursday she was subpoenaed. She declined to comment further. Ridley’s main role was in policing the use of third-party vendors in 2020.

Sexton, who says he’s been cooperating with the FBI since mid-2019, reiterated his position Thursday to reporters that he wasn’t surprised at being subpoenaed. When pressed by reporters, he also questioned why it would be considered “significant” to be a witness.

Attorneys take a different view of the matter. Some say it just means the grand jury is wrapping up the investigation. Others say being subpoenaed means you might not have been as congenial as the feds would like.

When Sexton took the speakership, the FBI was already looking into the potential for bribery in connection with the House vote on Gov. Bill Lee’s education savings account program when then-Speaker Glen Casada held the board open for nearly 45 minutes and worked the chamber to find a tie-breaker.

Rep. Kent Calfee told The Lookout he was on the chamber balcony when he heard Casada talk about getting Democratic Rep. John Mark Windle a promotion from colonel to general in the National Guard in return for his vote.

Republican Rep. Bob Ramsey told The Lookout this week he was offered a new pod for his county’s jail. He didn’t go for it.

After Sexton took over, the FBI’s investigation widened.

Casada, who is leaving the Legislature and running for Williamson County clerk, has denied making illicit offers and connections to shadowy campaign vendors and political action committees.

Yet a guilty plea by former Rep. Robin Smith shows that she and the person who served as House Speaker from January 2019 to August 2019 (Casada) received kickbacks from that former speaker’s ex-chief of staff (Cade Cothren) who ran Phoenix Solutions. It was a bogus campaign vendor that made more than $200,000 off the House Republican Caucus and caucus members, in some instances doing work on their taxpayer-funded mailer accounts.

Sexton would not say Thursday when he first knew Phoenix Solutions was phony. Nor would he say whether Chip Saltsman, a consultant for the House Republican Caucus campaign committee, had been subpoenaed. Saltsman did not respond to text messages Thursday. 

Former House members Matthew and Timothy Hill and Micah Van Huss, all allies of Casada, did not answer phone calls either to see if they were ordered to testify.

“We’ll go before the grand jury as a witness and answer any questions they have,” Sexton said. “And then they’ll come out of there with an indictment on whoever they want. I think it’s interesting to look at who probably did not get subpoenaed and that would probably give you why everybody’s getting subpoenaed.”

*** Click Here to Support Conservative Journalism in Tennessee. We can’t bring you stories like this without your support!***

Who’s saying what

The Capitol/Cordell Hull complex has been buzzing this week with talk about who was served, who will get indicted next and whether this is the tip of the iceberg. Conventional wisdom is that the feds are using Casada to get to someone else. He’s got nothing else to lose.

Republican Lt. Gov. Randy McNally said Thursday he thinks the subpoenas are mainly for witnesses, which will help the grand jury set up the case for the federal government to prosecute.

Democrats, of course, aren’t so sure if everyone under subpoena is in the clear.

“If you’re cooperating, you don’t need a subpoena. They don’t force you to come in,” said Rep. Bo Mitchell, D-Nashville. 

Mitchell pointed out Thursday he and other Democrats have been “screaming from the mountaintops” for years about attempted bribery in the House and “no-show” jobs for political operatives, as well as the scheme to funnel money through vendors to lawmakers and others.

“It’s time for the public to know who’s involved in this and who’s still on the House floor casting votes,” Mitchell said.

Senate Minority Leader Jeff Yarbro noted it’s “not a normal day” for a dozen subpoenas to be issued by a grand jury in a criminal investigation.

But then again, in the Legislature, it’s nothing out of the ordinary. It happens every 15 years, give or take a couple.

Getting a handle on it

State Rep. Sam Whitson put his ethics reform legislation on notice Thursday, a measure he hopes will clean up some of the “shenanigans” going on in the Legislature.

While some lawmakers say they can’t legislate against “dishonesty,” Whitson’s bill, which is made up of four amendments, could make it harder to game the system.

For instance, more expenses and donations will have to be reported and explained, even up to the night of an election. More disclosures will have to be made by those involved in politics, including operatives who played a bigger role under Casada. 

Lawmakers and staff members such as those working for the governor also will have to provide more information on disclosure forms, even details about what companies they do business with outside state government.

Penalties for treasurers and chairmen of political action committees will be increased to a Class A misdemeanor. And there are many other changes in the proposal.

The Registry of Election Finance would add two non-partisan members from an open government committee, in addition to facing tighter rules on publicizing meetings and term limits.

Another move could require a photo identification to start a political action committee.

Doh, I could have had a V-8! Considering you have to show a certain photo ID to vote, it only makes sense to prove who you are to raise thousands of dollars to funnel money to elections and lawmakers’ accounts. 

Whitson’s bill was on hold early in the week, but when news broke of the grand jury subpoenas, the dam apparently broke.

About the Author: Sam Stockard is a veteran Tennessee reporter and editor, having written for the Daily News Journal in Murfreesboro, where he served as lead editor when the paper won an award for being the state’s best Sunday newspaper two years in a row. He has led the Capitol Hill bureau for The Daily Memphian. His awards include Best Single Editorial from the Tennessee Press Association. Follow Stockard on Twitter @StockardSam