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The head of Tennessee’s campaign finance watchdog advises former Sen. Brian Kelsey, who is trying to overturn his federal campaign finance conviction, that he can’t use political action committees to pay his lawyers. did.
Kelsey, a Germantown Republican, transferred $196,833 from his state campaign account to Red State PAC last summer and changed attorneys twice before deciding whether the money could be used to pay for legal fees in a federal case. A legal opinion was sought.
Bill Young, executive director of the Office of Ethics and Campaign Finance, told Memphis Red State PAC Chair Jennifer Martinez in November 2023 that state law “restricts the transfer of a candidate’s campaign funds from a candidate’s campaign account.” issued an advisory opinion that prohibits spending. personal use,” which prevents PAC funds from being spent on Kelsey’s legal costs.
Young said he believes Red State PAC “should not use” the funds for this purpose and that such use would violate state law.
Mr. Kelsey pleaded guilty two years ago to directing a scheme in which money from his state account was funneled through two PACs to the American Conservative Union, which was responsible for Mr. Kelsey’s unsuccessful 2016 U.S. Congressional campaign. made significant radio/digital spending. Because state and federal campaign funds fall under different guidelines, such a transfer of funds violates federal law.
The former state lawmaker reversed his guilty plea, claiming his decisions were influenced by the birth of his twin sons and the illness of his father, who has since passed away. He also said he doesn’t understand the criminal justice system, even though he earned a law degree from Georgetown University and served as chairman of the Senate Judiciary Committee.
U.S. District Judge Waverly Crenshaw sentenced Kelsey to 21 months in prison, but ordered him to be released on bond while Kelsey makes his arguments before the Sixth Circuit Court of Appeals. He has admitted to the crime and is aiming to have his charges overturned or at least not serve time in prison.
Need money to hire a new lawyer
Martinez, the PAC chairman, wrote in the letter that the majority of Kelsey’s legal costs were fixed payments to attorneys who Kelsey subsequently fired. Martinez said he personally spent $422,570 in legal fees and received $107,000 from his defense fund, for a total of $529,570.
Kelsey initially hired defense attorneys Paul Bruno, David Rivera and Jerry Martin, but fired them when he decided to withdraw his guilty plea. He also released another lawyer, David Warrington, before settling on Alex Little and Zachary Lawson, who will represent him from mid-2023.
In a letter to the registry, Martinez said Red State PAC has received numerous donations from Kelsey’s reelection account over the years to support other candidates, including in 2023. That includes a $196,883 donation received on June 1, after which Kelsey said he closed his reelection account. . Martinez said in her letter that Kelsey is a director of Red State PAC and that she solicits, accepts and makes recommendations for donations to the PAC, but that she has “sole authority” to spend her funds. states that she has one.
But Young noted that the money would be used to pay for legal fees on matters that are “at best unrelated” to Kelsey’s candidacy for state senate. Additionally, Young said the funds would be used to defend Kelsey’s “individual capacity to violate federal law,” making it a personal use prohibited by state law.
Furthermore, Mr. Young said that given Kelsey’s position as a PAC officer and the possibility that Red State PAC would be involved in an investigation that would lead to criminal proceedings, it was unclear whether PAC would be allowed to pay for the litigation. “I couldn’t accept it,” he said.
Ultimately, Young said Tennessee law “prohibits” Red State PAC from using the $196,883 it received from Kelsey’s campaign account to pay for legal fees in the federal case. He said it was his own opinion. Mr. Young encouraged Mr. Martinez to seek guidance and explanation from the Federal Election Commission and the U.S. Attorney’s Office.
Young also said in a separate advisory opinion that Red State PAC cannot hand over money to nonprofits to pay for Kelsey’s legal costs.
Young encountered backlash from registry members for issuing an advisory opinion, even if it was informal.
Tom Lawless, a member of the Registry Committee, expressed concern that the Registry Committee would not like to be “weaponized” and “delay judicial action, especially in criminal matters”, as it has been in the past. He said no. Mr Lawless explained that this was why he did not want to accept the recommendation.
But Young noted that the board has directed an informal advisory opinion to be prepared and that registry officials feel they need to form an opinion, otherwise Red State PAC will face Kelsey’s legal liability. He added that there is a possibility that people will think it is okay to spend the money. Fee.
“This is not the opinion of the registry committee. This is the opinion of the executive director and the attorney,” Young said.
Registry Chairman Hank Fincher also questioned whether the board should be obligated to get involved in the matter and answer any potential questions.
Registry Counsel Lauren Topping told board members that the recommendation proved to be more “formal” because of the way the questions were posed. Registry staff typically don’t answer hypothetical questions, she says.
Topping also noted that registry staff had no role in the prosecution, but added: “This very much seems like an attempt to get him into trouble already.” We didn’t want people to think we were just not expressing an opinion. ”
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