By Brian Lazenby and Ashley Rowland Staff Writers
Federal authorities Thursday arrested four Tennessee lawmakers, including longtime Sen. Ward Crutchfield, D-Chattanooga, and charged them with taking bribes to help pass legislation.
Gov. Phil Bredesen in a statement called the situation "a challenge and a sadness to us all" that "cannot help but shake the confidence of the people of Tennessee."
Also arrested and indicted were Rep. Chris Newton, R-Benton; Sens. John Ford and Kathryn Bowers, both D-Memphis; and Memphis-based lobbyist Barry Myers.
Former Sen. Roscoe Dixon, a Memphis Democrat who resigned from the Senate in January, also was arrested and indicted.
Charles Love, a member of the Hamilton County Board of Education and a lobbyist, was indicted and is expected to turn himself in to federal authorities today, officials said.
The two-year sting operation, dubbed "Tennessee Waltz," is an investigation into bribes lawmakers allegedly accepted to support legislation beneficial to E-Cycle Management, an undercover company set up by the FBI, said Terrell Harris, U.S. attorney for the Western District of Tennessee. "Public corruption is always a top priority," Mr. Harris said. "Government is not for sale." Federal agents representing E-Cycle Management Inc., based in Atlanta, sought legislation to allow them to seek state contracts to recycle outdated electronic equipment. Authorities said the agents paid bribes in an effort to get the legislation passed.
The Chattanooga Times Free Press broke the story of E-Cycle Management and the proposed legislation on Saturday. Rep. Newton, the House sponsor of the bill, withdrew it Wednesday after questions were raised in a Times Free Press story about Mr. Love’s role as a lobbyist for it.
COURT APPEARANCES
Sen. Crutchfield, Sen. Bowers and Rep. Newton appeared just after noon Thursday in a Nashville courtroom in handcuffs. Sen. Crutchfield wore a blue jacket and tie, Rep. Newton wore khaki pants and a navy polo shirt, and Sen. Bowers wore a lime-green pants suit and silver shoes. All three were released on their own recognizance.
Sen. Bowers said afterward she was "doing as well as can be expected."
Upon leaving court, Sen. Crutchfield said he was "not going to say anything."
Sen. Crutchfield returned to the Senate chamber as legislators resumed their regular schedule.
Later, Sen. Crutchfield told the Times Free Press he will fight the charges and prevail. "I’m not guilty of this," Sen. Crutchfield said after Thursday’s Senate session. "I’ll address it at the appropriate time and in the appropriate manner."
Federal marshals in Memphis led Sen. Ford, Mr. Dixon and Mr. Myers handcuffed and shackled into a packed courtroom in the Clifford Davis Federal Building on Thursday afternoon.
U.S. Magistrate Judge S. Thomas Anderson released Mr. Dixon and Mr. Myers on their own recognizance, but prosecutors are seeking to have Sen. Ford held in custody.
Martin A. Grusin, who represents Sen. Ford in pending civil matters and in ethics complaints against him, told Judge Anderson that he would not be able to represent the senator in this matter and that he was helping him find legal representation.
Mr. Grusin said he spoke with three lawyers Thursday, but each wanted more money than Sen. Ford could pay.
Judge Anderson postponed Sen. Ford’s detention hearing until today, when a decision will be made whether he will be held in custody until trial. If Sen. Ford does not have a lawyer today, he may appoint a federal public defender, Judge Anderson said. Assistant U.S. Attorney Tim DiScenza said he did not oppose delaying the hearing.
"We are prepared to hold a detention hearing for Mr. Ford today, tomorrow or any other time," he said.
The Senate Ethics Committee also is investigating Sen. Ford’s involvement with companies that have contracts with TennCare, the state’s health insurance program for 1.3 million residents.
INSIDE THE CHARGES
Sen. Crutchfield and Mr. Love each are charged with illegally receiving $12,000 from E-Cycle, according to the Thursday indictments.
Rep. Newton is charged with Mr. Love in a separate indictment with receiving $4,500 from the company.
According to the indictments, Mr. Love and Mr. Myers each told officials with E-Cycle that they had influence over and each was a "bag man" for certain legislators. The two men introduced E-Cycle officials to the legislators who would support certain legislation in exchange for money, agents stated.
After paying Sen. Crutchfield $3,000 on Sept. 14, 2004, Mr. Love told investigators posing as E-Cycle officials that Sen. Crutchfield had agreed to sponsor legislation beneficial to the bogus company, an indictment states.
Several more payments totaling $12,000 were made to Sen. Crutchfield between September 2004 and Feb. 15, 2005, the indictment states.
The indictments also charge that Mr. Myers paid Sen. Bowers $11,500, Sen. Ford $55,000 and former Sen. Dixon $9,500 in bribes.
Sen. Ford also is charged with three counts of attempting to intimidate a witness by threatening to shoot him if he was working with the FBI.
Officials said the investigation was a joint effort involving FBI agencies in Memphis, Nashville, Chattanooga and Knoxville, the Tennessee Bureau of Investigation and U.S. attorneys’ offices in the Middle and Eastern Districts of Tennessee.
All four indicted lawmakers were sponsors of the legislation for E-Cycle, but six other cosponsors were not charged: Sen. Jeff Miller, R-Cleveland; Rep. Ulysses Jones, D-Memphis; Rep. Charles M. Sargent, R-Franklin; Rep. Larry Miller, D-Memphis; Rep. Paul Stanley, R-Germantown; and Rep. Joe Armstrong, D-Knoxville.
Staff writers Michael A. Weber and Michael Finn and The Associated Press contributed to this story.
E-mail Brian Lazenby at blazenby@timesfreepress.com
CHARGES AND MAXIMUM SENTENCES
Conspiracy to commit theft or bribery — 5 years (Sen. Crutchfield, Mr. Love, Rep. Newton, Sen. Ford) Conspiracy to commit extortion — 20 years (Sen. Crutchfield, Mr. Love, Sen.
Bowers, Mr. Myers, Rep. Newton, Mr. Dixon, Sen. Ford) Accepting bribes — 10 years (Sen. Bowers, Sen. Ford, Mr. Dixon) Attempting to intimidate a witness — 10 years (Sen.
Ford) Each charge carries a possible fine of up to $250,000. Source: Terrell Harris, U.S. attorney for the Western District of Tennessee
THE BILLS
HB0037 — Sponsored by Rep. Chris Newton, R-Benton; co-sponsored by Rep. Ulysses Jones Jr., D-Memphis, Rep. Charles Michael Sargent, R-Franklin, Rep. Kathryn Bowers (now a state senator), Rep. Larry J. Miller, D-Memphis, Rep. Paul Stanley, R-Germantown, Rep. Joe Armstrong, D-Knoxville. SB0094 — Sponsored by Sen. John Ford, D-Memphis; co-sponsored by Sen. Ward Crutchfield, D-Chattanooga, Sen. Jeff Miller, R-Cleveland. The bills proposed broadening types of surplus computer and electronic equipment available to local education agencies. The legislation would have required all surplus computer and electronic equipment not disposed to local education agencies to be disposed of by a qualified electronic recycling company by negotiated contract for sale to be disposed of out of state. The bill amended Tennessee Code Annotated Title 12, Chapter 2. Rep. Newton withdrew the House bill on Wednesday.
