Their charges followed the abrupt resignation in March of Republican Rep. Robin Smith, who pleaded guilty to federal wire fraud charges involving Casada and his chief of staff, Cade Cothren. Speculation has swirled about what additional charges might emerge in the corruption probe. The 20-count charging document alleges that Casada and Cothren took advantage of their positions of power by working with another unnamed lawmaker to funnel money to themselves using a political consulting firm — known as Phoenix Solutions, LLC — that concealed their involvement. “It was further part of the conspiracy for Casada and the other co-conspirator to enrich themselves by taking bribes and kickbacks from Cothren in exchange for securing Phoenix Solutions’ approval as a mailing program supplier,” a Justice Department press release said. FBI agents arrested Casada and Cothren at their homes Tuesday morning. If convicted, each faces up to 20 years in prison. House Speaker Cameron Sexton, who succeeded his Republican colleague in the leadership post, was among several lawmakers and former or current officials who testified before a grand jury in March. Sexton praised the FBI on Tuesday, saying it would continue to assist in the investigation if a trial is needed. Smith also promised to cooperate as a potential witness. Revelations about the case also prompted lawmakers to pass stricter state campaign finance and ethics requirements this year. “Today is a good day for the people of Tennessee because we didn’t turn a blind eye to these criminal activities,” Sexton said. Casada stepped down as speaker in 2019 but stayed on after revelations that he and Cothren had exchanged sexually explicit text messages about women years earlier. He is not running for re-election this year. Cothren lost his legislative job in the texting scandal, but remained involved in Republican politics. FBI agents searched the homes and offices of several state legislators in January 2021, including those of Casada and Smith, and Cothren’s home. Charging documents unsealed Tuesday say Cothren started Phoenix Solutions with the “knowledge and support” of Smith and Casada to offer mailing and consulting services to lawmakers. All three claimed the company was run by a “Matthew Phoenix,” when in fact it was a made-up alias for Cothren, and Casada knew the name was fictitious, the documents allege. The documents claim that Smith emailed Cothren at one point saying he “might have to take on the role of Matthew again.” He answered saying, “Matthew, reporting for duty!” and included a GIF with “a salute from Harrison Ford’s character Han Solo in the Star Wars film,” officials said. Federal investigators said a separate message exchange showed Casada texted Cothren in late 2019 saying “I think this is off to a good start, I’m happy!” Cothren later warned that “we just have to make sure nobody knows I’m involved,” they said. When Casada raised concerns about lawmakers wanting “representatives from Phoenix” to make an in-person presentation, Cothren responded that they would remind lawmakers “that they live in New Mexico. I’ll have to call about it and I might cover my voice if I do.’ Phoenix Solutions received about $52,000 from the state in payments related to the mail program, according to charging documents. Meanwhile, Cothren continues to fight a subpoena related to state campaign finance regulators’ investigation into the Faith Family Freedom Fund PAC. Ahead of the 2020 GOP primaries, the political action committee targeted then-Rep. Rick Tillis, the brother of North Carolina US Senator Tom Tillis. Rick Tillis lost to Republican Rep. Todd Warner, who was among those under FBI investigation in January 2021. The Tennessee Registry of Elections Finance decided to reopen its investigation into the PAC after its treasurer testified in January that she was Cothren’s ex-girlfriend and opened the PAC because Cothren asked her to. She said Cothren assured her he did nothing wrong and took no further action. Cothren informed the Register that he is invoking his Fifth Amendment right against self-incrimination and will not comply with his subpoena. The secretariat handed over the case to the prosecutors. The state sued over Cothren’s refusal. Casada was also subpoenaed and told the Register that he was not affiliated with the PAC. Casada chose to run for Williamson County clerk this year instead of his state seat and lost in the GOP primary.
