Robin Smith, former state Republican chairman, Congressional candidate and state representative, pleaded guilty Tuesday afternoon to a federal felony.
She appeared in Nashville before Judge Eli Richardson and admitted guilt to the charge of honest services wire fraud.
In the plea agreement, she agreed to cooperate with prosecutors.
Prosecutors said Ms. Smith was involved in a bogus company with individuals identified as disgraced former House Speaker Glen Casada and his former aide Cade Cothren. Charges have not been filed against Casada or Cothren.
The Smith plea agreement indicates that the government will make a recommendation on her sentencing based on her cooperation.
The sentencing was set off until Oct. 17. She faces a maximum prison sentence of 20 years and a maximum fine of $250,000.
The plea papers indicate that she will face some sort of fine, which will be largely dependent on the government's recommendation.
Afterward, she issued this statement, "Earlier today, I entered into a plea agreement with the federal government. I have pled guilty to one count of honest services fraud. Once the Department of Justice informed me of the nature of my activities, I took full responsibility for my actions, culminating in my guilty plea. There are no excuses. I intend to cooperate fully as a witness with the federal government and do whatever I can to assist the government in this regard.
"I have resigned as Representative of the Tennessee House. I did so out of respect for the honor of Tennesseans, my commitment to public service over the last several decades, and of course, my Christian faith. I believe in forgiveness and I hope to earn yours over time..
"Serving is an honor. Rather than continuing to serve in the General Assembly, I intend to remain active in my community and my church. While this has been a difficult time in my life, I remain convinced that something positive will come out of it.
"As you can imagine, I am not able to provide any additional comment at this time. If you have any questions or need any additional information, I would refer you to the plea agreement, which speaks for itself."