Possible ‘straw donor scheme’ seen in Kelsey campaign money transactions with other legislators

When state Sen. Brian Kelsey ran unsuccessfully for Congress last year, he was giving political money to state legislators who also gave money to him, reports The Tennessean, and a Washington attorney who specializes in campaign finance law says the transactions could be a “straw donor scheme” that warrants a federal investigation.

The story – declared part of “an ongoing USA Today Network-Tennessee investigation” – lists seven Republican state legislators and one unsuccessful GOP candidate for a state House seat who gave to Kelsey and received funds from his state Senate campaign account or a PAC he operates. It also says Kelsey also donated from his Senate account to eight legislators who did not give to his congressional campaign and sent money through his Red State PAC to 10 legislators who did not donate to his campaign.

The legislators with back-and-forth donations: Sens. Todd Gardenhire of Chattanooga, Steve Dickerson of Nashville, Delores Gresham of Somerville and Bill Ketron of Murfreesboro; Reps. Glen Casada of Franklin, Ron Gant of Rossville and Martin Daniel of Knoxville. Steve Glover, who lost a race against Democratic Rep. Darren Jernigan of Nashville, is also listed. An excerpt:

A political consultant with knowledge of the Tennessee lawmaker’s transactions said Kelsey asked multiple state legislators to make a federal contribution in exchange for a donation to their own state campaigns.

While Kelsey and his donors denied coordination, the dates and amounts of the transactions and previous evidence involving campaign contributions are enough to warrant a Federal Election Commission investigation, (Brendan) Fischer said.

“It’s even further evidence that there was some sleazy business happening in Tennessee with these transfers of funds,” Fischer said.

Fischer is “an attorney and Federal Election Commission reform program director with Washington, D.C.-based Campaign Legal Center.”

Note: The newspaper had a report last week questioning the legality of money shifting between Kelsey’s campaign, two PACS and a major GOP donor. There’s a post on that article HERE.

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Former Knoxville News Sentinel capitol bureau chief Tom Humphrey writes about Tennessee politics, government, and legislative news.
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