phoenix solutions

Paperwork for mystery vendor appears to have been improperly filed in registered agent’s name

Phoenix Solutions, the campaign vendor that has come under scrutiny following an FBI raid on Tennessee lawmakers last month, appears to have improperly filed its application to do business in the state.

A Spokane, Wash.-based company called Northwest Registered Agents LLC had been hired to originally register Phoenix Solutions in New Mexico in November 2019. When the company filed its papers with the Tennessee Secretary of State four days later, it submitted an electronic signature in the name of the same Northwest employee, Morgan Noble. The problem is that Noble did not submit the latter filing for Phoenix Solutions, according to her employer.

“We did not do that,” Jed Smith, a spokesman for Northwest Registered Agent LLC, told The Tennessee Journal. “It was unauthorized.”

The company remains a client of Northwest in both New Mexico and Tennessee, but Smith said “we weren’t hired” for registration purposes in the latter.

Phoenix Solutions did $231,144 worth of business with Tennessee Republicans — almost entirely from House members — in the year since emerging on the scene. Rep. Robin Smith of Hixson, a former state GOP chair and then a freshman lawmaker, was a chief proponent of directing caucus business toward Phoenix Solutions.

Smith, newly elected Rep. Todd Warner (R-Chapel Hill), and former House Speaker Glen Casada (R-Franklin) had their homes and offices searched by federal agents. Smith and Casada have declined to answer questions about whether they or former aide Cade Cothren (whose home was also searched) had any financial ties to Phoenix Solutions.

A phone number for Phoenix Solutions listed in invoices filed with the Tennessee General Assembly is disconnected.

Phoenix calling: Mystery vendor received more than $200K in 2020 (UPDATED)

Reps. Robin Smith (R-Hixson), left, and Mark Cochran (R-Englewood) are sworn into the 112th General Assembly on Jan. 12, 2021. (Erik Schelzig, Tennessee Journal)

A mystery campaign vendor believed to be at the center of an FBI investigation into three sitting House members and a former chief of staff was the beneficiary of more than $200,000 in Republican spending.

As of Monday evening, Phoenix Solutions was reported to have received $82,450 during the fourth quarter to bring its total haul for the year to $200,850. About $72,000 of that has come from Rep. Robin Smith, a Hixson Republican who was among the lawmakers who had their homes and offices searched, and her Leadership Pioneers PAC.

Smith and the PAC spent $14,500 on the company in the quarter, with the money going toward get-out-the-vote efforts, a digital fundraising campaign, and independent expenditures in support for Reps. Mark White of Memphis, John Gillespie of Germantown, and Mike Sparks of Smyrna.

Also reporting spending on Phoenix in the quarter were Republican Reps. Esther Helton of Signal Mountain ($10,700 for advertising), Charlie Baum of Murfreesboro ($7,300 for advertising) and Patsy Hazlewood of Signal Mountain ($5,600 for consulting fees). The state Republican Party spent another $44,500 on Phoenix’s services, including on Gillespie and unsuccessful House candidates John Dawson of Clarksville and Patti Possell of Cordova.

The subjects of the FBI searches were Reps. Todd Warner (R-Chapel Hill) and Glen Casada (R-Franklin), along with Cade Cothren, who was Casada’s top aide when he was speaker.

“I am fully cooperating. I plan to be doing that,” Smith told reporters after the FBI raids. Her attorney said in a statement that Smith was not a “target” of the investigation.

Pressed by the Chattanooga Times Free Press’ Andy Sher about whether she had any connection to Phoenix, Smith replied: “All I will tell you is we’ve issued a statement. I’m fully cooperating. I don’t want to do anything to jeopardize what’s going forward. And I look forward to being able to issue another statement in the future.”

Phoenix has become a new player since Smith’s election to the General Assembly, with several lawmakers saying she was a major advocate for using the New Mexico-based outfit.

Before Monday’s disclosures, Phoenix had received $118,400 in 2020, including $22,800 from Kent Calfee of Kingston, $21,900 from Paul Sherrell of Sparta, $6,200 from Dan Howell of Cleveland, $4,400 from Jason Zachary of Knoxville (who misspelled the name of the company as “Phenoix” in his disclosure), $1,900 from Baum, $1,700 from Hazlewood, and $1,700 from Mark Hall of Cleveland.