Lawmakers expected to testify in FBI probe
A swath of federal subpoenas issued to Tennessee legislators and legislative staff last week suggests investigators might be examining more than one political consulting firm connected to former House Speaker and current Rep. Glen Casada.
Lawmakers are expected to testify before a grand jury beginning Monday morning. Grand jury testimony is shielded under federal law, and at least one legislator said the subpoenas do not specify the subject of the investigation.
The subpoenas came Tuesday, two weeks after the rapid resignation and guilty plea of former Rep. Robin Smith, who was implicated in a kickback scheme related to political consulting firm Phoenix Solutions.
Smith, R-hixson, agreed to cooperate with prosecutors in an ongoing investigation, while her charging documents alleged Casada and his former top aide Cade Cothren were involved in the kickback scheme that netted business from multiple lawmakers and House legislative services. Neither have been charged.
Rep. Bud Hulsey, R-kingsport, confirmed Thursday he received a subpoena to appear before a federal grand jury next week.
Hulsey did not conduct business with Phoenix Solutions, but he did spend money with Right Way Consulting, another political consulting firm set up by Casada, R-franklin, in the months following his resignation as House speaker amid a scandal involving Cothren and racist and sexist text messages.
Hulsey said this week Casada approached him about using the firm for a constituent survey, which was completed.
“He did the survey, and I know it was done because I got the responses from people in my district,” Hulsey said. “He invoiced me, and I paid it.”
Casada’s consulting firm, which he ran from his home, raised ethical questions at the time as he approached his colleagues to use his business.
Casada appeared at a Williamson County Policy Talks forum Friday, where he declined to answer from The Tennessean about the federal probe.
“Don’t ask me any questions about it, y’all know I can’t talk about it,” Casada said.
Lawmakers spent $21K with Right Way Consulting
An analysis by The Tennessean found 13 Republican representatives and one political action committee spent around $20,948 with Right Way Consulting in 2019 and 2020.
About $14,133 was spent from campaign accounts, while the other $6,815 was spent with taxpayer money through legislative accounts.
The Tennessean reached out to all 13 lawmakers who spent money with Right Way consulting. Only Hulsey responded to questions, while Rep. Dan Howell, Rcleveland, said he had not been subpoenaed.
At the time of Right Way’s formation, the firm was legal under a state law that only banned state officials from selling goods, not services.
In 2021, House Speaker Cameron Sexton, R-crossville, introduced legislation closing the services loophole. State law now prevents a state official or employee from selling any good or service while in office or in the six months following their departure.
Sexton on Tuesday confirmed he was subpoenaed in the probe, which he said was not unexpected given his cooperation with investigators. Director of Legislative Administration Connie Ridley, who manages legislative invoices and signed off on multiple Right Way Consulting invoices filed by legislators, was also subpoenaed.
Casada has not responded to multiple Tennessean requests for comment since Phoenix Solutions was implicated in Smith’s charging documents.
Sexton last week demurred when asked if Casada should resign in light of the allegations contained in Smith’s plea deal.
The Tennessee Registry of Election Finance in March also voted to send an investigation of Casada and related political action committees to Williamson County prosecutors.
“There’s been nothing levied against him except allegations, so we just simply have to wait for an investigation to continue and see how it works out,” Sexton said.
House Democrats continued to criticize their Republican counterparts Thursday, with several mentioning the federal investigation and lack of subpoenas issued to their party members.
“I’ve been screaming for three years, if we don’t clean up our house, someone else will,” Rep. Bo Mitchell, D-nashville, said Thursday in response to the subpoenas.. “Well, the feds and the FBI are starting to clean up.”
Reach Melissa Brown at mabrown@tennessean.com. Reach Adam Friedman at afriedman@tennessean.com