Multiple TN lawmakers, aides appear before grand jury in FBI probe
Lawmakers and legislative staff flowed in and out of the federal courthouse Monday as prosecutors entered the next stage in their investigation into a potential kickback scheme.
Last week, several lawmakers and aides received subpoenas to appear before a federal grand jury.
The probe appears centered around former House Speaker and current Rep. Glen Casada, R-franklin, and his former chief of staff, Cade Cothren.
Prosecutors have already secured the cooperation of former Rep. Robin Smith, R-hixon, who abruptly resigned and pleaded guilty three weeks ago to a single count of wire fraud in connection to a shadowy company called Phoenix Solutions.
In January 2021, FBI agents descended on the homes and offices of multiple lawmakers, including Casada and Smith.
Smith’s charging documents alleged Casada and Cothren were involved in the kickback scheme that netted business from multiple lawmakers and House legislative services. Neither have been charged.
Casada appeared at a Williamson County Policy Talks forum last week, where he declined to answer questions from The Tennessean about the investigation.
“Don’t ask me any questions about it; y’all know I can’t talk about it,” Casada said.
In 2019, Cothren resigned from his job and Casada stepped down as speaker amid a scandal involving racist and sexist text messages.
House speaker not ‘surprised’ by grand jury questions.
House Speaker Cameron Sexton, Rcrossville, was the first witness providing about 25 minutes of testimony to the grand jury.
Sexton told reporters after testifying prosecutors subpoenaed him as a witness, and none of the questions asked were “surprising.”
“I’ve been working and assisting them since 2019,” Sexton said. “I was pretty comfortable answering every question they had.”
Connie Ridley, director of legislative administration, and former Republican aide Holt Whitt were the only legislative staff to testify. Whitt works in the Tennessee Department of Human Resources but previously worked in various House Republican positions under Sexton and Casada.
Reps. Patsy Hazlewood, R-signal Mountain; Esther Helton, R-east Ridge; Bud Hulsey, R-kingsport; and Jason Zachary, R-knoxville; also appeared before the grand jury.
Each of the state representatives testimony lasted between 10-15 minutes. Grand jury testimony is shielded under federal law, but The Tennessean was able to stand outside and monitor who went in and out.
The appearance of Hulsey shows investigators may be investigating more things on Casada.
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.
Melissa Brown contributed to this report.
Adam Friedman is The Tennessean’s state government and politics reporter. Reach him by email at afriedman@tennessean.com.
The appearance of Hulsey shows investigators may be investigating more things on Casada. 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.