School Board Member Charles Love Charged As "Bag Man"
posted May 26, 2005
 Sen. Ward Crutchfield |
County School Board member Charles Love was also among those charged, the FBI said.
Also arrested were Sen. John Ford of Memphis, Sen. Kathryn Bowers of Memphis, former Sen. Roscoe Dixon of Memphis, and Barry Myers, an associate of Dixon.
Sen. Crutchfield was taken into custody as he was going into his office in Nashville.
All those charged were due to go before federal magistrates today. After a hearing in Nashville, Sen. Crutchfield told reporters, “I’m not guilty of anything. I’ll make a statement at the appropriate time.” His attorney, Bill Farmer, said Crutchfield planned to return to his work in the Legislature.
Federal prosecutors at a late morning press conference in Memphis said the FBI set up a dummy company, E-Cycle Management, that was seeking to obtain favorable legislation.
They said the legislators accepted money from the dummy corporation, including $12,000 to Sen. Crutchfield and Love.
Officials said $4,500 went to Love and Newton.
There was a payment of $11,500 to Myers and Bowers and $9,500 to Myers and Dixon, officials said.
Authorities said the undercover operation was set up "to respond to allegations of corruption by government officials."
A 14-page indictment against Crutchfield and Love says it was part of the conspiracy that Love "would represent to certain individuals, including individuals associated with E-Cycle, that he had influence over, had collected money for, and was in essence a 'bag man' for certain members of the Tennessee General Assembly who could be influenced in sponsoring and voting for certain legislation that would benefit E-Cycle."
It says Love introduced E-Cycle officials to Crutchfield, "who would co-sponsor, support, and vote for legislation beneficial to E-Cycle in exchange for illegal payments of money."
The indictment says last July 30, Love had a telephone conversation with an E-Cycle representative "and indicated that he could deliver cash to Ward Crutchfield."
Love then met Aug. 20 in Memphis with the E-Cycle officials, and he "indicated that if E-Cycle had 'gifts to bear' they would get more attention concerning the legislation which they wished to get passed. Charles Love further indicated that he had worked in the past 'bearing gifts' to legislators, including Ward Crutchfield. Charles Love further discussed the fact that he would initially need approximately $15,000 to pay legislators and that the defendant Ward Crutchfield would need more money than some others."
It says on Sept. 8, Love and a representative from E-Cycle met with Crutchfield in Chattanooga. "Charles Love explained to Ward Crutchfield that E-Cycle had a bill which it wished to have Ward Crutchfield support." It says on Sept. 9, Love had a telephone conversation with an E-Cycle representative and indicated that he had personally talked to Ward Crutchfield and that it would take 'three' for Ward Crutchfield to support the bill. On or about Sept. 12, 2004, the defendant Charles Love received a wire transfer from the Western District of Tennessee to his bank account in Chattanooga in the amount of $6,500. On or about Sept. 14, 2004, defendant Charles Love met with Ward Crutchfield in Chattanooga and paid him $2,500 on behalf of E-Cycle in order to gain his support for legislation proposed by E-Cycle."
The indictment says on Sept. 14, Love told E-Cycle he would be going to Ward Crutchfield's office and giving the cash "to one of Ward's staff people."
It says on Sept. 16, Love met with an E-Cycle representative and indicated that he had met with Ward Crutchfield on Sept. 14 and that he would sponsor the bill. Love said he had given Crutchfield $3,000.
The indictment says, "Charles Love further stated that the defendant Ward Crutchfield would not indicate that the cash came from E-Cycle and that he had given it to Ward Crutchfield through Ward Crutchfield's administrative assistant."
It says on Sept. 16 that Ward Crutchfield met with a representative of E-Cycle and "thanked him for 'being my friend.'" He indicated he would sponsor the bill.
The indictment says on Sept. 17, Love had a telephone conversation with E-Cycle and said Ward Crutchfield "would need to be given more money." On Sept. 28, he said the additional amount was $2,000.
Love on Oct. 5 said Crutchfield had agreed to the additional $2,000 amount. On Oct. 8, Love told E-Cycle that Crutchfield "was owed $2,000."
On Oct. 12, Love met with E-Cycle in Memphis and had a conversation about how the $2,000 would be paid to Crutchfield. The indictment says, "During that conversation, Charles Love indicated that he would go over to Ward Crutchfield's office and give the money to Ward Crutchfield by giving it to his secretary in Ward Crutchfield's presence."
On Oct. 12, Love and an E-Cycle representative traveled from Memphis to Chattanooga "for the purpose of delivering the money." It says Love had an envelope with the initials W.C. on it containing $2,000 in currency.
The indictment says on Oct. 13, Love and an E-Cycle representative met at Ward Crutchfield's office in Chattanooga, and Love "indicated that he had already given money to Ward Crutchfield's secretary."
It says Ward Crutchfield was told by his secretary "he was mighty nice to us today."
The indictment says Ward Crutchfield told the E-Cycle representative that "we will do whatever you want us to do."
It says on Feb. 15 of this year, Ward Crutchfield met with an E-Cycle representative and was handed two envelopes containing $1,500.
It says, "Ward Crutchfield and the E-Cycle representative discussed how they would deny the payments to Ward Crutchfield's secretary."
A 12-page indictment against Newton and Love says last July 30 Love spoke with E-Cycle officials and "indicated that he could deliver cash to Chris Newton."
It says on Sept. 8, Love and a representative from E-Cycle met in Chattanooga with Newton and "discussed payments to defendant Chris Newton."
The indictment says on Sept. 12, an E-Cycle representative told Love he would be faxing a copy of the bill to Newton and would talk to Newton over the phone the next day. It says Love "indicated that Chris Newton would probably need $1,500 in order to support the bill."
It says Love on Sept. 14 received a wire transfer of $6,500 to his bank account in Chattanooga, and that day he said he would be going to see Newton. It says he "acknowledged that Chris Newton was to receive $1,500 for supporting E-Cycle's legislation."
On Sept. 16, an E-Cycle official met with Love in Chattanooga, and Love said he had met with Newton the day before and he would co-sponsor the bill. It says, "During that conversation, the defendant Charles Love acknowledged that the defendant Chris Newton received $750 and was due another $750."
It says on Sept. 16, Newton had a meeting in Cleveland with an E-Cycle representative "and during that time acknowledged that he had spoken to the defendant Charles Love concerning the bill which E-Cycle wished to get passed. During the course of this conversation, Chris Newton acknowledged to the E-Cycle representative that Charles Love was taking care of him."
It says on Sept. 17, Love said he had met with Newton and "given him the remaining $750 of the initial $1,500 which was owed."
The indictment says on Sept. 24, Love told E-Cycle it "needed to give Chris Newton more money." On Sept. 28, he said another $1,000 was needed.
It says on Oct. 12, Love drove to Memphis and was given by an E-Cycle representative an envelope bearing the initials C.N. with $1,000 for Newton.
The indictment says on Oct. 13, Love and Newton met in Cleveland with an E-Cycle representative, and Newton had the envelope with him.
Newton filed the E-Cycle bill on Jan. 13.
The arrests are under the federal Hobbs Act, charging extortion. Charges are conspiracy to extort and attempted extortion and accepting bribes by an agent of the state of
Tennessee.
Those charged could face up to 20 years in prison on the former count and up to 10 years on the latter.
A bill had been drawn up for E-Cycle, and it was sponsored in the Senate by Sen. Crutchfield and Sen. Ford and in the House by Rep. Newton relating to the sale of surplus computers and equipment. It would have allowed electronic recycling companies to contract with the state to dispose of surplus state computer equipment not claimed by school districts.
Love had lobbied for the bill.
Indictments in the case were returned by a Grand Jury in Memphis.
The arrests were made by the FBI, and the legislators were taken away from Capitol Hill in handcuffs. Rep. Bowers had to be taken to Vanderbilt Hospital.
Authorities said Sen. Ford received $55,000 in illegal payments. They said Ford is also charged with three counts of attempting to intimidate or threaten witnesses. He could get 10 years on each of those counts.
Love last week filed for bankruptcy, citing debts totaling $275,651 and assets of $184,160.
He said he was "offering a compromise" to the Internal Revenue Service on $49,000 in taxes he owes the government.
It was reported recently that Love had lobbied state legislators on behalf of E-Cycle, though he was not registered to work for the firm. He said he thought E-Cycle Management had filed the required papers. Love this week submitted the papers to lobby for E-Cycle.
Sen. Crutchfield, a longtime power in Hamilton County politics, was formerly the Senate Majority Leader.
Sen. Crutchfield, 76, is also an attorney for the Hamilton County School Board.
Rep. Newton, 34, has served as assistant Republican floor leader.
Ford is accused of taking $55,000. Crutchfield is accused of taking $12,000. The others are accused of taking lesser amounts.
“Government is not for sale,” U.S. Attorney Terrell Harris said at the press conference in Memphis.
Officials said they plan to "vigorously prosecute those who violate the public trust."
They cited "the excellent investigation and the tremendous professionalism" of those involved in the probe.
Officials said it was "very labor intensive, but a very thorough and complete investigation. There were many months of tireless efforts."
The investigation was led by the Memphis Division of the Federal Bureau of Investigation and included the Knoxville Division of the FBI. The investigation was conducted by agents from the Memphis, Nashville, Chattanooga, and Knoxville FBI offices along with agents of the Tennessee Bureau of Investigation and with the cooperation and assistance of the United States Attorney's Offices in the Middle and Eastern Districts of Tennessee.
Assistant United States Attorney Tim DiScenza is prosecuting the case for the government.
 Charles Love |
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