The three-decade director of the Tennessee Legislature Office of Legislative Administration testified Friday that former state representative Robin Smith took an unusual interest in getting payments pushed through for a company called Phoenix Solutions.
Connie Ridley said she eventually found out that Phoenix Solutions was a sham company that was really operated by Cade Cothren, former chief of staff to former House Speaker Glen Casada.
Cothren and Casada are facing criminal charges in Nashville Federal Court. They face up to 20 years in prison if convicted by a jury that is now hearing the case.
Ms. Smith, of Hixson, pleaded guilty to a single count of honest services fraud and is due to testify for the state. Her sentencing is in June.
Ms. Ridley said Ms. Smith was heavily involved in a legislative program that gave $8,000 annually to senators and $3,000 per year to representatives for constituent mailings.
Ms. Smith had a consulting firm called Rivers Edge Alliance, and Casada had a consulting firm called Right Way Consulting. Many legislators have second jobs.
Prosecutors said Phoenix Solutions was set up after "the scandal" that prompted Cothren to step down from his $200,000 per year legislative post and Casada to vacate the House Speaker's seat. The scandal involved alleged salacious and racist emails.
Ms. Ridley said there were some 10 vendors to choose from for the mailers, including Ms. Smith, though she said doing so by a legislator "was considered somewhat of a conflict of interest."
Prosecutors said Casada and Ms. Smith received "kickbacks" from Cothren on the mailing jobs they lined up.
Ms. Ridley said Ms. Smith complained to her about slow payment for Phoenix Solutions invoices. The witness said, "I was not aware that this company involved her."
Ms. Ridley said an email from Phoenix said they were "concerned that this had not been paid." They said it was "a poor reflection on the state of Tennessee."
She said she told Ms. Smith that the company needed to submit a W9 tax form. She said when that eventually came in it listed a Matthew Phoenix as the owner. Prosecutors said that was a made up individual because those involved with the firm knew legislators would not want to work with a firm headed by Cothren.
Ms. Ridley said Ms. Smith also brought in mailer work for Reps. Patsy Hazlewood and Esther Helton-Haynes and others. She said there was "an urgency from her to get the invoices paid." She said she told her W9s were needed for each of those.
Ms. Ridley said the Legislature decided to tighten the rules on the constituent mailers and that brought "some pushback" from Robin Smith, "who was concerned about the expanded requirements." Ms. Smith wrote, "Is something going on?"
Ms. Ridley, who retired last year, said it was necessary to set up Phoenix Solutions on direct pay. She said this involved emails from Matthew Phoenix and a Candice McKay. One email complained of "unnecessary drama" in the payment process and said Tennessee "is not the easiest state to deal with." She said Ms. Smith forwarded her the emails.
The direct deposit money was to go - not to New Mexico where Ms. Smith said Matthew Phoenix was living in Santa Fe, but to the firm's "Nashville office."
It was testified earlier that New Mexico is a state where the names of the owners of businesses are confidential.
Ms. Ridley said she became curious about Phoenix Solutions and she obtained a cancelled check from the bank for the firm in May 2020. She said, "It was signed by Cade Cothren."
She said she continued to approve invoices for Phoenix Solutions for several more months after the FBI advised her to do so as their investigation continued.
Ms. Ridley said had she known that Cade Cothren was the owner of Phoenix Solutions "I would not have approved him as a vendor. I do not have confidence in his judgment and decision making."