William Cotton
County Commissioner William Cotton was arrested on extortion charges by federal authorities late Thursday morning in the Operation Tennessee Waltz scandal.
He was taken in handcuffs to the Federal Courthouse.
Cotton was charged with taking a bribe to get a resolution passed on the County Commission dealing with the E-Cycle firm getting outdated equipment from the county. E-Cycle turned out to be a bogus company set up by the FBI.
He faces up to 20 years in federal prison.
Cotton, still in handcuffs, appeared before Magistrate Susan Lee at 2 p.m. along with his attorneys, Hank Hill and Mike Little. Attorney Hill said they were making a limited appearance and had not finalized arrangements. Cotton said he needed a month to do so, but Magistrate Lee said he would have to be ready by his next hearing on Oct. 14 at 2 p.m.
The charges were brought on a criminal complaint. They are expected to be taken to a federal grand jury on Oct. 12.
Cotton was released after the initial appearance. Magistrate Lee told him he has to get rid of any guns he may own.
The arrest came shortly after he attended a County Commission meeting.
He was followed to his home in Alton Park by a convoy of officers.
FBI Agt. Scott Barker said in an affidavit that E-Cycle represented itself to Cotton and others that it was in the business of obtaining and disposing of outdated electronic equipment and sending it out of the country for salvage.
He noted that former County School Board member Charles Love, a longtime close associate of Cotton, was introduced to an agent posing as an E-Cycle official. Love was indicted earlier in the sting, and he pleaded guilty. He is awaiting sentencing.
Agt. Barker said last Dec. 16, the undercover agent and Love had a meeting to discuss how E-Cycle could procure a resolution from the Hamilton County Commission to obtain the county's outdated equipment.
He said Love "indicated Cotton was the person they needed on the County Commission to make sure E-Cycle obtained the resolution from the County Commission giving E-Cycle the ability to salvage Hamilton County's outdated electronic equipment."
The agent said on Jan. 16, Love and Cotton had a phone conversation in which they discussed E-Cycle wanting a resolution from the County Commission. Love told Cotton he had told E-Cycle it would take $1,600 to $1,700 to get started in Hamilton County. Love had previously told the undercover agent it would take $3,500 to get Cotton's support for the E-Cycle resolution, the agent said.
Agt. Barker said on Jan. 20, Love, Cotton and the undercover agent met for lunch at the Southside Grill. During lunch, the undercover agent passed a white envelope that contained $3,500 to Love. After lunch in the parking lot of the Southside Grill, Love was observed removing $1,750 of the money from the envelope and placing the money in his pocket.
The envelope with the remaining $1,750 was given to Cotton, Agt. Barker said.
Agt. Barker said he and FBI Agt. Jeffrey Blanton watched Love remove the money from the envelope.
Immediately after Cotton drove away from the restaurant, Love telephoned Cotton and told him he needed to thank the E-Cycle official. Cotton said, "I appreciate your help. You have a friend for life, doc."
The undercover agent thanked Cotton for his support of the proposed resolution, and the undercover agent told him if there was anything else he needed to let him know.
On Jan. 25, Love and Cotton had a phone conversation setting up meetings with other county officials to advance the business of E-Cycle in the county.
Cotton said, "You go ahead and tell your boys to get ready to bring their package in here. I hope it is bigger than the first one."
On Jan. 29, Love and Cotton had a phone conversation in which Cotton told Love not to take money from the undercover agent at the table like he did the last time.
Cotton: The next time that guy wants to do what he did last time at the table, don't take it that way, Charles. Go to the bathroom or whatever, get in the car and ride or whatever. That was too open. They should have did it before you sat at the table. If they say anything like that, just say, well the commissioner is very funny about things being passed around.
Love: That is why I had him call and you say I appreciate it. See what I am saying? That is the way it is supposed to be done. You ain't supposed to witness s---?
Cotton: Right, I was supposed to say I appreciate lunch.
Love: Yeah, you ain't suppose to witness a d--- thing.
Cotton: That's right.
Love: If you are ever called to testify, you can say with the truth, I ain't seen nothing.
Cotton: You can always say it wasn't that. When it is open like that, remember now that is how they got Gass. (Charles Gass was a County Commissioner who was convicted for a Hobbs Act extortion in 1988, federal authorities noted)
On Feb. 21, Cotton and Love met the undercover agent at the E-Cycle office in Nashville. The purpose was to pay Cotton $6,000 for his continued support of E-Cycle obtaining the resolution from Hamilton County.
During the meeting, the following conversation occurred:
Undercover Agent: Charles has indicated to us you want to help out.
Cotton: Right.
Undercover Agent: We've shown you our gratitude in the past, and I guess from my understanding that gratitude was for a favorable vote if it comes across the County Commission.
Cotton: So we stay legal. It is something we would like to do. We have to be careful how we say it. I am in the legal committee, so I will make sure it gets through for a final vote when it gets to my committee. It will go through unless I get struck by lightning.
The undercover agent told Cotton that Joe Carson (who was posing as the president of E-Cycle) has to be happy that E-Cycle is going to get their money's worth from the commissioner.
Cotton: I will do my part.
Undercover Agent: That was your understanding that it was going to six ($6,000)?
Love: Give it to me, and I will give it to him later. He don't see it.
Undercover Agent: I want to make sure he is a happy man.
Cotton: I am always happy. I am cool with it.
Undercover Agent: Will Joe be alright with you (Love) getting the money?
Love: Yes, because he knows that he (Cotton) is going to get the money.
Cotton: I'm alright. I'm straight.
Love: It can't be said you gave it to him.
Cotton left the room and the undercover agent told Love that Cotton would need to confirm over the telephone that he had received the money just as Cotton had done on Jan. 20. Love told the undercover agent that Cotton would call him in a few minutes. Shortly after Cotton and Love left the E-Cycle office, Cotton called the undercover agent and the following conversation occurred:
Cotton: I want to thank you very much for everything you have done. I'm looking forward to working with you and getting your proposal through as soon as I get it. We can move on from there."
Undercover Agent: Sounds good, sir. Thank you.
Cotton: I feel good with this and let's make it happen.
Undercover Agent: I just wanted to make sure Charles is showing our appreciation towards you.
Cotton: I appreciate that too, sir.
The FBI said Cotton received $3,000 and Love got $3,000 from the $6,000 given Love by the undercover agent.