New TNJ edition alert: The end or the beginning on FBI probe?
The latest edition of The Tennessee Journal is out. Here is what’s in it:
— Are indictments the conclusion of FBI probe or opening gambit?
— Casada poised to lose legislative pension if he strikes plea deal.
— From the campaign trail: FEC flags filings for errors – but nothing yet on Andy Ogles, a temporary replacement for Mike Bell, and a soft landing for Amy Weirich.
— Obituary: Former longtime state research chief dies at 89.
Also: Bartlett puts ordinance seeking to limit campaign signs on hold, Shelby County clerk takes issue with being called AWOL for Jamaica trip, Asian-American groups oppose Biden’s nominee for federal prosecutor in the Eastern District, and Susan Lynn is sorry about all those things she said about Mae Beavers.
As always, access the your copy of the TNJ here.
Or subscribe here.
Achy breaky vendor? Informants say Smith called purported operative ‘Matthew Cyrus’
Three confidential informants within the Cordell Hull Building assisted federal investigators in a probe into the activities of former House Speaker Glen Casada, then-Rep. Robin Smith, and ex-legislative staffer Cade Cothren, according to court documents obtained The Tennessean’s Adam Friedman, Melissa Brown, and Mariah Timms.
An affidavit filed in support of the search of the FBI’s search of Smith’s home and electronic devices in January 2021 was apparently inadvertently left open for public perusal in East Tennessee federal court. The document has since been sealed, but not before the Tennessean reporters got their hands on it.
The affidavit recounts how the confidential informants began relaying details to investigators in May 2020, specifically about how Smith promoted a vendor called Phoenix Solutions to colleagues. According to Smith’s guilty plea earlier this year and last week’s indictments of Casada and Cothren, the outfit was run by Cothren and the two lawmakers allegedly received kickbacks for directing business to it.
The informants told the FBI there had been several gaps in the efforts by Smith and Casada to hid Cothren’s participation. They included his endorsement of checks meant for Phoenix Solutions and having money direct deposited into a Davidson County bank even though the company was ostensibly based in New Mexico.
Smith told caucus members Phoenix Solutions was run by a man named Matthew Phoenix who had previously worked for Jamestown Associates, a real political consulting company based in Washington. But investigators established nobody by that name had worked for Jamestown. After the meeting, Smith appeared to slip up while speaking to a confidential informant, calling the operative “Matthew Cyrus.” She later tried to correct herself by saying Cyrus was Phoenix’s middle name, the warrant said.
A third informant recorded a call in which Smith said she sometimes got confused because the consultant went by both Matthew Phoenix and Matthew Cyrus.
Meanwhile, Andy Sher of the Chattanooga Times Free Press reports Smith has asked for her sentencing to be delayed from its original date of Oct. 17 to at least the end of January 2023.
“The plea agreement . . . contemplates the defendant will cooperate with the government in this and related cases,” the motion said. “It is anticipated the defendant will testify in United States v. Casada.”
The judge in the Casada and Cothren case has scheduled the trial to begin Oct. 25, though it’s likely proceedings will be delayed if the defendants waive their right to a speedy trial.
UPDATE: Smith’s sentencing has been rescheduled for Jan. 30.
Casada, Cothren indicted on federal bribery, kickback charges
Former Tennessee House Speaker Glen Casada and his onetime chief of staff, Cade Cothren, have been indicted on federal bribery and kickback charges. The FBI arrested both at their homes on Tuesday morning.
Casada is retiring from the House this year after stepping down from the speakership amid scandal in 2019. He was overwhelmingly defeated in his bid for Williamson County Clerk earlier this year.
The charges stem from the operation of Phoenix Solutions, a shadowy campaign mail vendor that also led to the guilty plea of former Rep. Robin Smith (R-Hixson) earlier this year.
Casada and Cothren pleaded not guilty in a court appearance later on Tuesday morning.
Here’s Tuesday’s release from the U.S. Attorney’s Office:
NASHVILLE –Tennessee State Representative Glen Casada, 63, of Franklin, Tennessee, and his former Chief of Staff Cade Cothren, 35, of Nashville, were indicted by a federal grand jury yesterday and charged with conspiracy to commit the following offenses: theft from programs receiving federal funds; bribery and kickbacks concerning programs receiving federal funds; honest services wire fraud; and conspiracy to commit money laundering. Both were arrested at their homes this morning by FBI agents and will make initial appearances before a U.S. Magistrate Judge later today.
The announcement was made by Mark H. Wildasin, U.S. Attorney for the Middle District of Tennessee and Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.
The 20-count indictment, unsealed this morning, also charges Casada and Cothren with using a fictitious name to carry out a fraud; theft concerning programs receiving federal funds; eight counts of money laundering; six counts of honest services wire fraud; and two counts of bribery and kickbacks.
According to the indictment, beginning in and around October 2019, Casada, while representing Tennessee House District 63, Cothren, and another conspirator, also a member of the Tennessee House of Representatives, engaged in a fraudulent scheme to enrich themselves by exploiting Casada and the other conspirator’s official positions as legislators to obtain State approval of Phoenix Solutions as a Mailer Program vendor to provide constituent mail services to members of the Tennessee General Assembly. Casada, Cothren, and the other conspirator further sought to obtain State funds for Phoenix Solutions, Casada’s political consulting business, and a political consulting business owned by the other conspirator. It was further part of the conspiracy for Casada and the other conspirator to enrich themselves by obtaining bribes and kickbacks from Cothren, in exchange for securing the approval of Phoenix Solutions as a mailer program vendor.
The indictment alleges that Casada and the other conspirator told members of the Tennessee General Assembly that Phoenix Solutions was run by an individual named “Matthew Phoenix,” an experienced political consultant who had previously worked for a Washington, D.C.-based consulting firm. In fact, Cothren operated Phoenix Solutions, and Casada, Cothren, and the other conspirator knew that “Matthew Phoenix” was a fictitious person and secretly profited from the fraudulent venture. Casada, Cothren, and the other conspirator concealed their involvement in Phoenix Solutions by submitting sham invoices to the State of Tennessee in the names of political consulting companies owned by Casada and the other conspirator, for the purpose of secretly funneling money from the State to Phoenix Solutions through the bank accounts of these companies. In 2020, these companies and Phoenix solutions received approximately $51,947 from the State in payments associated with the mailer program.
The indictment also contains a forfeiture allegation in which the United States seeks to recover all proceeds of the crimes, including a money judgement representing the value of the proceeds traceable to any offense of conviction.
If convicted, Casada and Cothren each face up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI. Assistant U.S. Attorney Amanda J. Klopf and Trial attorney John P. Taddei of the Justice Department’s Public Integrity Section are prosecuting the case.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
New TNJ edition alert: Ogles files a lawsuit, but not his campaign finance disclosure
The latest edition of The Tennessee Journal is out. Here is what’s in it:
— Outside super PACs ramp up attack ads in 5th District, and one candidate takes his complaints to court
— Andy Ogles, who has been targeted for his late property tax, has now missed the campaign finance disclosure deadline by a week.
— A look at key donors to Beth Harwell and Kurt Winstead (and some who hedged their bets by giving to both).
— From the campaign trail: Todd Warner cries foul over mailers highlighting FBI raid and connections to “disgraced former speaker,” competitive primaries for two open House seats in Williamson County, and Scott Cepicky’s fight for reelection.
Also: Larry Arnn says he “will likely say it again,” John Mark Windle retires from the National Guard, Torrey Harris gets arrested, and Registry member Tom Lawless blasts the attorney general’s office.
As always, access the your copy of the TNJ here.
Or subscribe here.
Challenger drops the boom on embattled Rep. Todd Warner
Forget beating around the bush. Freshman Rep. Todd Warner (R-Chapel Hill) is getting the full treatment from Republican primary challenger Jeff Ford, a former Williamson County commissioner. A mailer sent out to voters in District 92 notes that Warner is under investigation by the FBI, with the agency’s initials appearing in bright yellow letters. “We deserve better!” the piece says.
The mailer notes that Warner’s home and office were raided by federal agents — “along with disgraced former speaker Glen Casada.” The latter lost his bid for Williamson County clerk by a 3-to-1 margin in March.
Here’s the other side of the mailer:
Grip and grin: News photo shows figures at center of federal investigation
An August 31, 2021, photo in the Elk Valley Times shows Cade Cothren, the disgraced former chief of staff to then-House Speaker Glen Casada, at a ribbon cutting for a new location of his family’s Highway 55 restaurant chain in Fayetteville. Cothren is joined by Rep. Todd Warner (R-Lewisburg) and Ava Korby, the daughter of suspended legislative staffer Nadine Korby.
Cothren, Warner, Casada, and the elder Korby were among the subjects of FBI searches in January 2021. So was Rep. Robin Smith (R-Hixson), who pleaded guilty this week to a federal wire fraud charge over the creation of a front company called Phoenix Solutions, which obtained contracts to design, print, and send political mailers on behalf of Republican lawmakers.
According to the charging document, Cothren posed as a man calling himself Matthew Phoenix. He and an unnamed girlfriend calling herself “Candice” allegedly corresponded on the company’s behalf. A source with knowledge of the investigation tells The Tennessee Journal the girlfriend in question was Ava Korby.
Sydney Friedopfer, another woman once romantically involved with Cothren, testified to the Registry of Election Finance in January that she had created a PAC called the Faith Family Freedom Fund on his behalf. She told the panel she didn’t know anything about the group’s subsequent attacks on then-Rep. Rick Tillis (R-Lewisburg) in his primary campaign against Warner.
Warner spent $75,500 on a vendor called Dixieland Strategies of Rainbow City, Ala., which had never before done work in Tenenssee and didn’t appear to be registered as a business. Warner told reporters later he couldn’t remember whom he had dealt with at the outfit. Rainbow raised eyebrows in the Tillis race for using the same postal code out of Chattanooga as Phoenix Solutions and the Faith Family Freedom Fund. Another campaign vendor told reporters that Cothren had commissioned him to do work that was billed to both the FFFF and Phoenix Solutions.
No one other than Smith has been charged so far.
Casada blasts Registry as ‘biased,’ Ogles threatens legislative action to halt subpoenas
Former House Speaker Glen Casada (R-Franklin) on Friday called the members of the Registry of Election Finance “biased” for subpoenaing information from him about a political action committee allegedly created at the behest of his onetime chief of staff, Cade Cothren.
Speaking at a Williamson Inc. forum, Rep. Brandon Ogles (R-Franklin) also blasted the move, saying the House plans to take a “deep dive” into the powers of the campaign finance board’s powers. Ogles is close friends with Cothren and was a prominent Casada loyalist before his speakership collapsed in 2019.
Casada is retiring from the House and running for Williamson County clerk this year. The Registry in 2020 hit Casada with a $10,500 civil penalty for failing to keep receipts for $99,000 worth of expenditures made by his PAC. He also had his home and office searched by FBI agents early last year.
The Registry last week voted to issue subpoenas after a former girlfriend of Cothren’s testified under oath that she had set up a political action committee called the Faith Family Freedom Fund at his urging, but then had nothing to with it as it bankrolled attacks on the re-election bid of then-Rep. Rick Tillis (R-Lewisburg). Email correspondence between someone purporting to be herself and the Registry did not come from her, she said.
Here is a transcript of the Williamson Inc. meeting on Friday:
Dave Crouch, moderator: The elephant in the room maybe this morning is you’ve been in the paper with some questions been asked about various things here recently. Is there anything you would like to say?
Glen Casada: I feel like a kid sitting on the side of the road, and someone’s just some come and punched me in the nose for no reason. If you didn’t know, the election registry of finance has subpoenaed me to ask me questions on a PAC. And the frustrating thing is, Dave, I have no knowledge of this PAC, I have no association, and there’s no reason to think that I do. And I realize three years ago, I was quite involved politically across the state on elections and getting people elected. But I just feel like the board has a bias, you know? And so, so let me just be very clear. And I was very clear [when I ] contacted them. Guys, not only do I not know, or never heard of this PAC, or no association with it. Why would you even reach out and punch me in the nose like you did? You know, there’s no reason to do that. So, so let me just put that to bed. And thank you for this opportunity to address it.
Crouch: I’m gonna push back a little just for conversation here. Cade Cothren was your chief of staff?
Casada: Yes. Three years ago.
Crouch: When you were speaker of House?
Casada: He was.
Crouch: And apparently he’s the one that had his girlfriend set this PAC up. That’s correct?
Casada: Yes.
Crouch: And why would he have done that?
Casada: You could ask Sam [Whitson], Brandon [Ogles], or Jack [Johnson] that question. I don’t know. I mean, there’s no association. It’s been three years ago when he was employed by me. So again, it’s just a bias on that board’s opinion. And the legislature gave them certain powers to be deliberative, and to be fair, and not biased. And I feel like you’re exhibiting biases by just assuming because he once worked for me three years ago, you know, that somehow I’m involved. And that’s not the way we run public policy.
Crouch: I just, I didn’t want to totally ignore the subject. I want to just air it out some. Brandon, you’ve got a comment?
Brandon Ogles: I’d like to speak to this because there was a conversation yesterday with members of the Judiciary Committee in the House. The fact that some of the things that were said in the press, they were so sloppily said by these committee members. For them to issue a subpoena that’s not signed by a judge, there’s going to be ramifications for that when you start threatening people to subpoena them. Some of these boards that we’ve set up in the state of Tennessee, these pseudo-entities, even entities within the state of Tennessee, that threaten people. And to issue subpoenas that have no weight, or credit, or value – and are not signed by a judge – circumvents every judiciary process we have in this state, both criminally and civilly. So we’re going to deep dive into this, this threat to subpoena people. And if this continues, remember: also the House committees can subpoena as well. So this will be interesting to watch play out. I’m going to enjoy being a member of Judiciary and seeing this come to light.
Ex-girlfriend testifies Cothren had her register PAC that attacked Casada foe Tillis
In remarkable sworn testimony to the Tennessee Registry of Election Finance on Thursday, the treasurer of a mysterious political action committee testified she had registered the outfit at the behest of her then-boyfriend, Cade Cothren, and had nothing further to do with it thereafter.
“I asked him if it was illegal to open it for him,” said Sydney Friedopfer, a former Vanderbilt student who now lives in Utah. “And he said no. And he said he just couldn’t have a name on it, considering everything he had gone through.”
The Family Faith Freedom Fund PAC was involved in attacking then-Rep. Rick Tillis (R-Lewisburg), a foe of Cothren and his former boss, House Speaker Glen Casada, in the 2020 primary won by now-Rep. Todd Warner. (Just as a reminder, Cothren, Casada, Warner, and Rep. Robin Smith had their homes and offices searched by the FBI around this time last year).
Here is a transcript of Friedopfer’s testimony to the Registry on Thursday. The other speakers are Registry chair Paige Burcham Dennis, general counsel Lauren Topping, executive director Bill Young, and members Tom Lawless, David Golden, and Hank Fincher.
Paige Burcham Dennis: Miss Sydney, are you on the phone today?
Sydney Friedopfer: Yes, I am.
Paige Burcham Dennis: OK, before we get to you. I want to remind you, we’re going to have Lauren, give us a little bit of background on the Faith Family Freedom Fund case. But I do want to remind you that you are under oath today even though you’re participating by phone.
Sydney Friedopfer: OK, yep, no problem.
Paige Burcham Dennis: OK. Lauren, can you give the Registry a little bit of background on what’s going on with the Faith Family Freedom Fund case?
Lauren Topping: So as you’ll recall, this case came about as a result of a complaint that was filed with the Registry. As a result of that, there was an audit that was ordered. Up until this point in time, we had been unable to reach Ms. Friedopfer. And so the audit report basically says that we were unable to obtain any information. I think that’s all in your packet. But since then, we have been able to contact her and so she is here on the line today to tell you what she knows. So that’s kind of where we are.
Paige Burcham Dennis: OK, so at this time, Sydney, I understand you’re in Utah. Is that correct?
Sydney Friedopfer: Yes, that’s correct.
Paige Burcham Dennis: OK. I’m Chairman Burcham Dennis, and we’re going to let you tell us what you would like to tell us concerning the case.
Sydney Friedopfer: OK. So I guess I don’t have the exact date, sometime in end of 2019, early 2020. I had a friend of mine that I met when I was back at Vanderbilt ask me to open a political action committee for him. I was advised that I should tell you the name. The name is Cade Cothren. And I trusted him.
Paige Burcham Dennis: Could you repeat that? His name was what?
Sydney Friedopfer: Cade Cothren.
Paige Burcham Dennis: OK.
Sydney Friedopfer: Being a 22, 23-year-old at the time, I, unfortunately, did not have any information about politics. I asked him if it was illegal to open it for him. And he said no. And he said he just couldn’t have a name on it, considering everything he had gone through, which I’m sure everyone’s aware. But yeah, he resigned from his position as chief of staff to Glen Casada. And he didn’t want his name on the political action committees. Like being young and dumb, honestly, regarding this, I –
Paige Burcham Dennis: So Sydney, you had an involvement, a relationship or friendship, with him. And he asked you to do this on his behalf. That’s what you’re saying?
Sydney Friedopfer: Yes. I mean, yeah. At the time, I thought I loved him, I guess. But I was young and he’s 10 years older than me. And I trusted him. And so I opened the political action committee for him. And I filed the papers, signed my name, and that was the last I heard of it. I received the e-filing thing in the mail. And I just sent him a picture of that. And he took over from there. And I didn’t hear about it again until a reporter started calling me. But the first time I had anyone call me from a reputable source that I was going to talk to was when Lauren called me a few weeks ago.
Continue readingFormer House Speaker Casada to retire amid FBI scrutiny
Former state House Speaker Glen Casada (R-Franklin) announced he won’t seen another term in 2022. The decision comes after federal agents searched his home and office before the start of the legislative session in January. No charges have been filed.
Casada stepped down as speaker in 2019 following a text messaging scandal with this former chief of staff, Cade Cothren, and a revolt among Republican lawmakers over his heavy-handed leadership style.
Casada has denied offering inducements to lawmakers to vote in favor of Gov. Bill Lee’s signature school voucher bill, which narrowly passed the chamber after the speaker kept the voting board open to cajole holdouts to switch their votes. Rep. Jason Zachary (R-Knoxville) ultimately changed his vote from no to yes after being promised his home county would be kept out of the bill.
Here’s the release from Casada:
Franklin, TN – Glen Casada (Republican, Dist. 63) announced today that he will not seek re-election to the State House, marking the end of a 20-year career as state representative. Casada has served as Caucus Chairman, Majority Leader and Speaker of the House. “This decision comes after much prayer and thought,” said Casada. “I am blessed and grateful to have served Williamson County and to have achieved many goals for my constituents, but it is time for a new chapter of public service.”
Casada sponsored the landmark constitutional amendment to ban the personal state income tax, and has successfully sponsored numerous conservative, pro-life and pro business initiatives. Several organizations have honored Casada as Legislator of the Year throughout his public service career.
Rep. Sam Whitson (Republican, Dist. #65) commented, “I strongly feel that Katie Beckett will be Glen’s legacy,” referring to the 2019 law that gave access to life-saving medical treatments and therapies to children with special needs. Casada secured funding for the program. “This law would not have been possible without his support and leadership.”
Elected to the Democrat-controlled State House in 2001, Casada worked tirelessly to support conservative candidates across the state. Those efforts were successfully rewarded in 2008 when voters flipped the State Assembly to a Republican majority for the first time since 1868.
“Glen’s strong conservative voice will be greatly missed,” said Rep. Brandon Ogles (Republican, Dist. #61). “Tennessee is better off today because of Glen’s investment in our state.”
Senator Jack Johnson (Republican, Dist. #23) remarked, “Rep. Casada is a great friend and a tremendous asset to our community. I am grateful for his conservative leadership and service to Williamson County and Tennessee.”
Report: Feds asked lawmaker if he knew Casada, Cothren were owners of Phoenix Solutions
State Rep. Kent Calfee (R-Kingston) tells the Tennessee Lookout’s Sam Stockard federal agents asked him whether he was aware of the roles of former House Speaker Glen Casada and his onetime chief of staff, Cade Cothren, in a mysterious campaign vendor.
“They asked me if I knew Cade Cothren and Glen Casada were owners of Phoenix Solutions,” Calfee told the publication.
The FBI raided the homes and offices of Casada, Cothren, and Reps. Robin Smith (R-Hixson) and Todd Warner (R-Chapel Hill) on the eve of the legislative session in January.
Calfee said FBI agents searched the computer of his assistant, Nadine Korby, who has been placed on administrative leave along with Casada aide Carol Simpson and interim chief of staff, Holt Whitt.
Calfee, a critic of the way school voucher legislation was passed in 2019, told the Lookout he believes the FBI is conducting three investigations, but declined to give specifics.
As first reported by The Tennessee Journal, federal agents had conducted interviews throughout the legislative session of lawmakers who engaged Casada and Smith for political consulting work.
As recently as the last day of the session, state Rep. Jason Zachary (R-Knoxville) told colleagues he had spoken to federal agents in his office. Zachary spent $4,408 with vendor Phoenix Solutions (though he misspelled it as “Phenoix Solutions” on his disclosures), the outfit believed to be at the center of the FBI probe.
Several colleagues have said Smith was a vocal advocate for steering more political work to Phoenix Solutions. She and Casada have both declined to say whether they have an ownership stake in the business.
“They did not tell me I couldn’t disclose the information that we discussed,” Zachary explained to Chattanooga Times Free Press reporter Andy Sher earlier this month, adding “even with my colleagues, I’ve still tried to be very careful about disclosing what we discussed.”
“Everything centered around the investigation with my colleagues, specifically Rep. Casada, Rep. Smith… I did a survey with Glen and it went through the Phoenix Solutions,” Zachary told the paper.
