x
Breaking News
More () »

DOJ: State Rep. Glen Casada, former chief of staff arrested for bribery and kickback scheme

The two pleaded not guilty in court Tuesday. They had been under investigation for years for a kickback scheme devised to defraud Tennesseans.

NASHVILLE, Tenn. — Rep. Glen Casada (R-Franklin) and his former chief of staff, Cade Cothren, have been arrested on conspiracy charges following a years-long federal investigation into a bribery and kickback scheme, according to the U.S. Department of Justice.

The DOJ said Casada and Cothren are charged with conspiracy to commit theft from programs receiving federal funds, bribery and kickbacks concerning programs receiving federal funds, honest services wire fraud, and conspiracy to commit money laundering. 

The two pleaded not guilty to the charges in front of a U.S. magistrate judge Tuesday afternoon. Casada did not make any comments to the press as he left the courthouse. Cothren's lawyer spoke and said he intends on "strongly defending the charges."

Credit: WSMV

The FBI is investigating the case. If convicted, the two could face up to 20 years in prison for some of the counts. 

According to the DOJ, Casada, Cothren and at least one other conspirator who was a member of the Tennessee House of Representatives engaged in a scheme to defraud Tennesseans in 2019. The DOJ said Casada and the other House member used their official positions to obtain state approval for a company called Phoenix Solutions as a vendor to provide constituent mail services to members of the Tennessee General Assembly.

Casada formerly served as the Tennessee Speaker of the House before stepping down in 2019 following a scandal. 

"Casada, Cothren, and the other conspirator further allegedly sought to obtain State funds for Phoenix Solutions, Casada’s political consulting business, and a political consulting business owned by the other conspirator. Casada and the other conspirator are alleged to have enriched themselves by obtaining bribes and kickbacks from Cothren, in exchange for securing the approval of Phoenix Solutions as a mailer program vendor," the DOJ said Tuesday.

The federal indictment alleged the conspirators told members of the Tennessee General Assembly that Phoenix Solutions was run by a man named "Matt Phoenix," claiming the person was an experienced political consultant who previously worked for a Washington, D.C.-based consulting firm.

The DOJ said Casda, Cothren and the other conspirator knew "Matthew Phoenix" was a fake person and secretly profited from the fraudulent venture. The three concealed their involvement by submitting sham invoices to the State of Tennessee in the names of political consulting companies owned by Casada and the other conspirator in order to funnel money from the state to Phoenix Solutions, according to the indictment.

In 2020, the companies and Phoenix Solutions allegedly received nearly $52,000 from the state in payments associated with the mailer program.

The news of Casada's arrest comes months after several Tennessee lawmakers received subpoenas from federal authorities, including Rep. Jason Zachary (R-Knoxville) and House Speaker Cameron Sexton (R-Crossville).

Sexton said Tuesday was "a good day for Tennesseans" because of the arrests.

“In Tennessee, we will not tolerate public corruption, defrauding our state, or bribery at any level. I commend the Federal Bureau of Investigation for its hard work, diligence, and dedication that resulted in this morning’s arrests," he said. "As I have previously stated on several occasions, shortly after becoming speaker in 2019, I began assisting the federal authorities during and throughout their investigation — including leading up to today’s indictments, and I will continue to do so if a trial is needed."

In January 2021, federal agents were seen taking boxes out of Casada’s Franklin home. Agents also raided Casada’s office along with three other House members inside the Cordell Hull Building. One of them was Cothren. Casada’s fellow house republicans, Rep. Robin Smith (R-Hixson) and Rep. Todd Warner (R-Lewisburg) also had their legislative offices raided. 

Sexton said at the time the raid was part of an ongoing investigation related to Casada.

Earlier in March 2022, Rep. Robin Smith (R-Chattanooga) resigned after federal prosecutors charged her with wire fraud. According to the court document from March, Smith helped others, including two unnamed individuals believed to be Casada and Cothren, devised and intended to devise a scheme to defraud the citizens of the Middle District of Tennessee. The document also alleged that in September and December 2020, Smith received two checks from Phoenix Solutions totaling more than $24,000, which she deposited into her consulting firm’s bank account.

Before You Leave, Check This Out