UPDATE: Smith strikes plea agreement with feds
State Rep. Robin Smith (R-Hixson) has struck a plea agreement with federal prosecutors over a kickback scheme related to a political vendor called Phoenix Solutions, according to court records.
“Ms. Smith submits that the parties have reached a plea agreement to resolve the pending charges in this case and that she is ready to change her plea in this matter,” according to a filing on Smith’s behalf on Monday afternoon.
A hearing on the matter has been scheduled for Tuesday at 4:30 p.m. Central in Nashville.
Earlier Monday, federal prosecutors made charges agaisnt Smith public alleging she was was joined by two unnamed individuals who are nonetheless easily identified as former House Speaker Glen Casada (R-Franklin) and his onetime chief of staff Cade Cothren.
Smith, a former state Republican Party chair, resigned from the House after being charged.
“I want you to know that serving the great people of this district, and indeed, all of Tennessee, has truly been an honor,” Smith wrote in her letter to House Speaker Cameron Sexton (R-Crossville) “I have resigned with the deepest of humility and out of respect for the role of public service.”
Correction: An earlier version of this post mistakenly referred to an indictment. The charging document was filed as an information.
Read the full charges here:
THE UNITED STATES CHARGES:
BACKGROUND ALLEGATIONS
At all times material to this Information unless otherwise indicated:
1. Defendant ROBIN SMITH was a member of the Tennessee House of Representatives (“Tennessee House”), representing District 26, which included part of Hamilton County, Tennessee. SMITH was first elected to the Tennessee House in or around November 2018. SMITH also owned and operated a political consulting company called Company I. Company 1 provided political consulting, mail, and project management services.
2. Individual 1 was a member of the Tennessee House, first elected in 2003. Individual I served as Speaker of the Tennessee House from in or around January 2019 until in or around August 2019. In or around August 2019, Individual 1 resigned as Speaker after a scandal became public. Individual 1 also owned and operated a political consulting company called Company 2. Individual 1 started Company 2 in or around October 2019 to provide fundraising services to Political Party 1 lawmakers.
3. Individual 2 was a businessman and former Chief of Staff to Individual 1 when Individual 1 was Tennessee House Speaker. In 2019, multiple news forums published allegations that Individual 2 had committed inappropriate and illegal conduct. Based on public reporting, Individual 2 admitted certain allegations, and, on or about May 3, 2019, Individual 2 resigned his position as Chief of Staff.
4. The State of Tennessee (“the State”) allocated Tennessee Representatives $3,000 annually to fund postage and printing of items to be sent to the legislators’ constituents (“the Mailer Program”). According to Tennessee House guidelines, Representatives were permitted to use Mailer Program funds to design and mail “legislative update mailers” and legislative surveys to their constituents. Representatives were permitted to use campaign funds to offset additional expenses beyond the $3,000 allocated under the Mailer Program.
5. The Tennessee House Speaker’s Office had the authority to approve or deny a vendor to provide services or any mailing funded by the Mailer Program.
6. In or around November 2019, Individual 2 established Phoenix Solutions, LLC. Phoenix Solutions was established, with SMITH and Individual l’s knowledge and support, for the purpose of offering mail and consulting services for legislative members facing primary challengers, and was later expanded to offer constituent mail services to members of the Tennessee General Assembly. SMITH, Individual 1, and Individual 2 told others, including members of the Tennessee General Assembly and the House Speaker’s Office, that Phoenix Solutions was run by an individual named “Matthew Phoenix.” SMITH, Individual 1, and Individual 2 claimed that Matthew Phoenix was an experienced political consultant who had worked for Consulting Firm 1, a real company based in Washington, D.C. In truth and in fact, Individual 2 ran Phoenix Solutions and SMITH, Individual 1, and Individual 2 profited from it.
7. SMITH, Individual 1, and Individual 2 knew that Matthew Phoenix was a fictitious person and was, in truth and in fact, Individual 2.
8.SMITH, Individual I, and Individual 2 concealed Individual 2’s involvement in Phoenix Solutions from the State and members of the Tennessee General Assembly due to the expectation that Phoenix Solutions would not be approved by the Tennessee House Speaker’s Office, acting on behalf of the State, or hired as a vendor by individual members if Individual 2′ s involvement was disclosed. SMITH, Individual 1, and Individual 2 also concealed the fact that Individual 2 kicked back a portion of the profits from the State and members of the Tennessee General Assembly to SMITH and Individual 1 due to the expectation that Phoenix Solutions would not be approved by the Tennessee House Speaker’s Office, acting on behalf of the State, or hired as a vendor by individual members Individual 2’s operational involvement and financial interests in the business and the kickbacks to SMITH and Individual 1 were disclosed.
9. SMITH and Individual 1 received kickbacks from Individual 2 in exchange for using their positions as members of the Tennessee House of Representatives to perform official acts, including pressuring the Tennessee House Speaker’s Office to approve Phoenix Solutions as a Mailer Program vendor and disburse State funds to Phoenix Solutions.
10. Individual 2, with SMITH and Individual’s knowledge and support, set up an email account for Matthew Phoenix, matthew@powerofphoenix.com, which Individual 2 used to conduct business on behalf of Phoenix Solutions.
11. Individual 2 incorporated Phoenix Solutions as a limited liability company (LLC) in New Mexico. Individual 2 set up a United States Postal Service post office box for Phoenix Solutions there and forwarded the mail received by that post office box to his home address in Nashville. Individual 2 later explained to SMITH that he established the post office box in New Mexico because that state allows the anonymous registration of LLCs.
12. In or around January 2020, SMITH was informed by an employee of the Tennessee House Speaker’s Office that the Speaker’s Office needed to work directly with the third-party vendor, which was a change in the existing guidelines employed by legislative members for constituent mail. SMITH informed Individual 2 of this fact. Individual 2 was notified that the State could not pay Phoenix Solutions without an Internal Revenue Service Form W-9 on file. In response, Individual 2, assuming the identity of Matthew Phoenix to disguise his true identity, sent a W-9 signed by “Matthew Phoenix” from the matthew@powerofphoenix.com email address to the Tennessee House Majority Caucus Advisor for the purpose of filing it with the State.
13. On or about December 18, 2019, SMITH emailed Individual 2. Referencing a potential future conversation related to Phoenix Solutions with a Political Patty 1 employee regarding a campaign mailing list that each incumbent legislative member was to receive, SMITH told Individual 2 that he “may have to assume the role of Matthew again.” Individual 2 replied to SMITH, “Matthew, reporting for duty!” and included a graphic interchange format (“.gif”) picture of a salute from Harrison Ford’s character Han Solo in the movie Star Wars.
14. On or about January 24, 2020, SMITH emailed Individual 2, writing, “We’ll start with this…Matthew…you might expect some type of call, email.” Below, SMITH copied an email chain between SMITH, the Acting Chief of Staff to the House Speaker, and the General Assembly’s Director of Legislation. In the email chain, SMITH asked the officials about the status of Mailer Program payments to Phoenix Solutions and why there was an issue with processing them. The Acting Chief of Staff wrote SMITH, “I’m on it.” SMITH replied, “Don’t crush her, but [the Director of Legislation has] been telling this vendor that the check’s on the way for about two weeks.” SMITH falsely added, “It’s guys from [Consulting Firm 1] who did mail two years ago that left and started their own gig…tired of doing the DC/Trump stuff. Thanks.” SMITH then forwarded the email chain to Individual 2, adding the message, “Shhhhhhhhhh.”
15. Individual 3 was Individual 2’s girlfriend. At times, Individual 3 assumed the fictitious role of “Candice,” another alleged employee of Phoenix Solutions.
16. On or about June 16, 2020, Individual 3 and Individual 2 emailed each other as “Candice” and “Matthew.” The purpose of the email exchange was to falsely make it appear as if two employees of Phoenix Solutions were having an exchange about the need to secure payment on outstanding Mailer Program invoices that the State had not yet paid. Individual 2, using the matthew@powerofphoenix.com email account, then forwarded the exchange to SMITH.
17. On or about June 22, 2020, SMITH emailed the General Assembly’s Director of Legislation, copying the Acting Chief of Staff to the House Speaker, to complain about delays in Mailer Program payments from the State to Phoenix Solutions. SMITH forwarded them the June 16, 2020, email exchange between “Candice” and “Matthew” complaining about the delayed payments. Above that email chain, SMITH wrote, “[Director of Legislation], I was cc’d on this last week. … It would be either illegal or unethical to move to print without knowing payment was coming, so the bulk permit number is provided on the invoice. Simpler, asking a firm to be liable for the cost with the printing completed before knowing payment may or may not be approved is suspect. Is there something going on?” Enclosed within SMITH’s email were invoices from Phoenix Solutions for legislative mailers on behalf of two Representatives, for $4,547.50 and $5,537.
18. On or about May 20, 2020, SMITH discussed Phoenix Solutions with a member of the Tennessee House Political Party 1 caucus. SMITH described Phoenix Solutions as her preferred survey mailer company. SMITH falsely said that Phoenix Solutions was owned and operated by Matthew Phoenix, an experienced political consultant with whom SMITH did business when SMITH used Washington, D.C.-based Consulting Firm I for political work. SMITH falsely said that Matthew Phoenix and his associate, Candice, got tired of living in the Washington, D.C. area and decided to move back home to New Mexico, where Phoenix started Phoenix Solutions. SMITH falsely said that she used Phoenix Solutions because of the quality of its work.
19. On or about August 10, 2020, SMITH attended a meeting of the Political Party 1 House campaign committee. Present at the meeting were several Tennessee Representatives, officials from the Speaker’s Office, and a committee consultant. SMITH repeated the same false statements regarding Phoenix Solutions that she had made to the caucus member on or about May 20, 2020. She also falsely told the committee members that she did not make any money from Phoenix Solutions.
20. On or about April 2, 2020, Individual 2 sent an email to SMITH and Individual 1. The email stated, “Friends, Here’s our up-to-date printing spreadsheet. All of these checks have been collected and deposited. All bills related to these print jobs have also been paid. So, let me know what address is best for you and I will cut checks for each of you?” Individual 2 provided a breakdown of total profit earned from each client. SMITH, Individual 1, and Individual 2 shared the profits, with Individual 2 earning 30%. Individual 1 and SMITH each earned $4,143.64, which was 25% of the business, each. Individual 2 wrote that the remaining 20% of the profit was “left in business.” Individual 2 also discussed ways to cut Phoenix Solutions’ future costs.
21. From on or about June I, 2020, through on or about December 1, 2020, Phoenix Solutions took on more varied projects, but continued to receive payments from the State-funded Mailer Program and campaign accounts of members of the General Assembly. During that timeframe, a Phoenix Solutions bank account ending in x3886 received revenue of approximately $158,165, excluding payments from campaign accounts associated with SMITH and Individual 2. From on or about January 1, 2020, through on or about December 31, 2020, Phoenix Solutions, Company 1, and Company 2 received approximately $51,947 from the State in payments associated with the Mailer Program.
22. On or about September 10, 2020, SMITH endorsed and deposited check number 152, dated September I, 2020, in the amount of $12,003.16, from Phoenix Solutions’ account number x3886 into a bank account associated with her consulting firm, Company 1. Individual 2 signed the check in his given name and wrote “Consulting” on the memo line.
23. On or about December 17, 2020, SMITH endorsed and deposited check number 170, dated December 16, 2020, in the amount of $12,116.96, from Phoenix Solutions’ account number x3886 into a bank account associated with Company 1. Individual 2 signed the check in his given name and wrote “Consulting” on the memo line.
COUNT ONE
18 u.s.c. §§ 1343, 1346
(Honest Services Wire Fraud)24. Paragraphs 1 through 23 are incorporated and realleged as if fully set forth herein.
25. Beginning in or around November 2019 and continuing until in or around January 2021, in the Middle District of Tennessee and elsewhere, the Defendant, ROBIN SMITH, aided and abetted by others, including Individual 1 and Individual 2, devised and intended to devise a scheme and artifice to defraud and deprive the citizens of the Middle District of Tennessee and the government of Tennessee of their right to the honest services of a public official, namely the honest services of SMITH and Individual 1, members of the Tennessee House of Representatives, through kickbacks.
26. In the Middle District of Tennessee and elsewhere, SMITH, aided and abetted by others, including Individual 1 and Individual 2, having devised and intended to devise the above described scheme, and for the purpose of executing the scheme, transmitted and caused to be transmitted by means of wire communication in interstate commerce, writings, signs, signals, pictures, and sounds.
All in violation of Title 18, United States Code, Sections 1343, 1346, and 2.
FORFEITURE ALLEGATION
1. The allegations contained in this Information are re-alleged and incorporated by reference as if fully set forth in support of this forfeiture.
2. Upon conviction of Count One of this Information, the defendant, ROBIN SMITH, shall forfeit to the United States, pursuant to Title 18, United States Code, Section 981(a)(l)(C), by Title 28, United States Code, Section 2461, any property, real or personal, which constitutes or is derived from proceeds traceable to the offense, including but not limited to a money judgment in an amount to be determined representing the value of the proceeds of the offense.
3. If any of the property described above, as a result of any act or omission of SMITH:
a. cannot be located upon the exercise of due diligence;
b. has been transferred or sold to, or deposited with, a third party;
c. has been placed beyond the jurisdiction of the Court;
d. has been substantially diminished in value; or
e. has been commingled with other property that cannot be divided without difficulty, the United States shall be entitled to forfeiture of substitute property, and it is the intent of the United States, pursuant to Title 21, United States Code, Section 853(p), as incorporated by reference in Title 28, United States Code, Section 2461(c), to seek forfeiture of any other prope1iy of SMITH up to the value of the property listed above as being subject to forfeiture.
Mark H. Wildasin
United States Attorney
Middle District of Tennessee
In search of Phoenix Solutions
The Tennessee Journal has ventured deep into New Mexico in search of the elusive political mail vendor believed to be at the center of a federal investigation into three sitting state lawmakers.
The mailing address of Phoenix Solutions is a mailbox store in a strip mall in Santa Fe, located next to a shuttered vape shop. Other businesses in the complex include a Harbor Freight tool store, a Carl’s Jr. fast food restaurant, and a drive-thru coffee shop called Agapao. Felipe’s Tacos is located across the street. There was no sign of the vendor’s purported proprietor, Matthew Phoenix, whom nobody has been able to reach since last year.
The FBI in January raided the offices of Republican Reps. Glen Casada of Franklin, Robin Smith of Hixson, and Todd Warner of Chapel Hill, along with the home of Cade Cothren, the former chief of staff to Casada when he was House speaker. Investigators have been mum about the reasons for the raid, but speculation has centered on the sudden prominence of Phoenix Solutions starting in early 2020.
Holt Whitt, the interim chief of staff for Casada and current speaker Cameron Sexton (R-Crossville) has obtained a letter from federal prosecutors that he is considered a witness in the case. Suspended after he was questioned in the January raids, Whitt has now been hired as Human Resources adviser in Gov. Bill Lee’s adminstration.
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.
FBI agents interviewed lawmakers throughout session, Zachary says Casada promoted Phoenix
As first reported in the print edition of The Tennessee Journal, federal agents have been conducting interviews throughout the legislative session of lawmakers who engaged Republican Reps. Glen Casada of Franklin and Robin Smith of Hixson 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 following the Journal report, 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.
It’s the first time Phoenix Solutions has been publicly linked to Casada, a former House speaker. Others have said they were told to bill the vendor for work done at the behest of his former chief of staff, Cade Cothren, or at the urging of Smith.
Zachary said he didn’t feel he provided any new information to agents “because Glen never pressured me, he didn’t hound me” to use the firm.
Registered in New Mexico in December 2019, Phoenix Solutions ended up receiving $231,000 from Tennessee Republicans in 2020. According to federal tax documents filed with the state, the company was run by a Matthew Phoenix, who at least one state lawmaker said he spoke to on the phone, but none has said to have met in person.
Smith’s attorney, Ben Rose, told the Times Free Press it was “news to us that Zachary, No. 1, has been talking to the FBI and that Zachary was, No. 2, a client of Phoenix. And it certainly didn’t have anything to do with [Smith].” He added, “Our position has been we continue to cooperate with the FBI.”
Smith wants to cast wider net on banning lawmakers from doing business with state
A bill introduced by House Speaker Cameron Sexton (R-Crossville) is aimed at ending the practice of having lawmakers’ political consulting firms be paid with taxpayer dollars to send out constituent mailers for their colleagues. The measure would apply to two GOP lawmakers who recently had their homes and offices raided by the FBI, Reps. Glen Casada of Franklin and Robin Smith of Hixson.
Smith’s Rivers Edge Alliance last year billed the General Assembly nearly $11,000 for work on behalf of three colleagues. Casada’s Right Way Consulting billed $12,500 to six GOP lawmakers’ accounts. Smith and Casada have also refused to say whether they have a stake in a secretive vendor Phoenix Solutions that sprung into prominence last year.
Smith tells Chattanooga Times Free Press reporter Andy Sher she wants to amend Sexton’s legislation to make it “even better” by expanding it to also include legislators’ “consultant or agent.”
Smith didn’t tell Sher whom she was seeking to target with her amendment, but her attorney has been blaming Sexton adviser Chip Saltsman for the FBI probe into his client, calling the matter a “turf war between political consultants.”
Saltsman and Smith are both former political consultants to the House Republican Caucus. They have been at odds since a 2010 congressional race in which Saltsman client Chuck Fleischmann defeated Smith in the Republican primary.
Sexton is cool to the idea of Smith amending his bill.
“Her amendment and what she wanted to do would not fit the caption of my bill,” Sexton told the Times Free Press. “Nor has she come to me about adding an amendment to my bill. What she’s wanting to do would not fit the caption, therefore you can’t do it even if I gave her the approval, I would accept the amendment — which I have not.”
Warner files fundraising report after blaming FBI raid for delay
Freshman Rep. Todd Warner, one of three Republican House members who recently had their homes and offices raided by the FBI, has filed a campaign finance disclosure after previously saying he couldn’t access his records because they had been seized by the federal agents.
The Registry of Election Finance ruled this week that it didn’t have the authority to give Warner an extension due to the law enforcement activity and instructed him to reconstruct his report from online filings
According to the report, Warner’s top donations in the fourth quarter were $1,500 each from the PACs of Amazon and House Speaker Cameron Sexton (R-Crossville). He also received $1,000 each from CVS Health, the Marshall County Republican Party, and Rep. Tim Rudd (R-Murfreesboro).
Warner reported raising a total of $9,750 and spending $1,183 during the period.
The other lawmakers searched by the FBI were Reps. Glen Casada of Franklin and Robin Smith of Hixson.
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.
Casada PAC attacks from 2018 appear to be templates for hit pieces on Tillis
A political action committee that ran attacks last summer against former Rep. Rick Tillis (R-Lewisburg) used the same template as hit pieces issued by the PAC of former House Speaker Glen Casada (R-Franklin) two years earlier.
The mailers attacking Tillis were run by a group called the Faith Freedom Family Fund, or FFFF. The ones targeting Jonathan Mason, a Republican candidate running for a Hamilton County House seat in 2018, were sent out by Red Ivory Strategies for Casada’s CAS-PAC. Red Ivory is owned by Michael Lotfi, whom Casada later hired for a no-show job at the General Assembly.
“Lying Rick Tillis will say & do anything to get elected … Don’t let him fool you!” reads an FFFF mailer.
“Lying Jonathan Mason will say & do anything to get elected … Don’t let him fool you!” says a CAS-PAC mailer.
Red Ivory received at least $135,000 from House Republicans in 2020, including $57,750 from the GOP caucus (which isn’t supposed to work against its own members).
The Tennessean has reported that former Casada aide Cade Cothren, who helped run CAS-PAC, also assigned work on behalf of FFFF.
Casada’s preferred candidate in the 2018 primary was Esther Helton of East Ridge, who went on to win the primary and the general election. A mailer from that race carried a Chattanooga postal permit number, 383, that has featured heavily in the Tillis primary.
Permit No. 383 was used in August by Tillis’ opponent Todd Warner, the FFFF PAC, and a campaign vendor called Phoenix Solutions, which has run mailers for a variety of GOP candidates. Rep. Robin Smith (R-Hixson) was a major promoter of Phoenix.
Smith, Casada, and Warner had their homes and offices searched by the FBI earlier this month, which agents also went through Cothren’s apartment.
Phoenix calling: Mystery vendor received more than $200K in 2020 (UPDATED)
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.
McNally: Lawmakers should resign if arrested
Senate Speaker Randy McNally, an Oak Ridge Republican who wore a wire for the FBI in the Rocky Top investigation in the 1980s, says state lawmakers who who had their homes and offices searched by federal agents should resign if they are arrested.
“Of course nobody’s been arrested. They’ve just had search warrants,” McNally told the Chattanooga Times Free Press. “But, if somebody’s arrested, I think they should resign.”
The lawmakers who had their offices and homes raided on Friday include former House Speaker Glen Casada (R-Franklin), Rep. Robin Smith (R-Hixson), and Rep. Todd Warner (R-Chapel Hill). The FBI is also looking into former top Casada aide Cade Cothren, interim House Chief of Staff Holt Whitt, and two legislative staffers.
So far we’ve heard from the lawyers of Smith and Whitt:
[Smith] intends to cooperate fully with the investigation in all respects. while she would have preferred to do so voluntarily, Robin understands this may not have been possible…. [She] “is not the target of the investigation, and she has not done anything wrong. Please understand that due to the ongoing investigation, Robin will not be providing any further comment.”
— Smith attorney Ben Rose to the Chattanooga Times Free Press.
Holt Whitt was one of several individuals contacted by agents with the Federal Bureau of Investigation regarding an ongoing investigation. Mr. Whitt is a well-respected legislative aide with an impeccable reputation, and he has not been charged with any wrongdoing. He is cooperating fully with the investigation. Out of respect for the legal process, Mr. Whitt will have no further public comment regarding this matter.”
— Whitt attorney Ty Howard.
Federal agents descended on Rep. Warner’s home and business in Marshall County with search warrants, the contents of which remain shrouded in mystery by the government. Significantly, Rep. Warner has not been charged with any wrongdoing.”
— Warner’s attorney Peter Strianse
