Feds probe campaign finances of Tenn. state lawmaker

Stacey Barchenger, Dave Boucher and Joel Ebert, The Tennessean8:22 p.m. EDT August 29, 2016

(Photo: Larry McCormack, The Tennessean)

NASHVILLE — Federal prosecutors have opened an investigation into the campaign expenditures of a Tennessee state representative accused of inappropriate conduct with 22 women, his lawyer said Monday.

The federal government has issued two subpoenas to Rep. Jeremy Durham, a Republican from Franklin, Tenn., for records related to campaign finance and a possible tax violation, said Peter Strianse, a criminal defense that Durham recently retained.

"The U.S. Attorney's Office in Nashville has opened up a matter based on the allegations that were carried in your newspaper," Strianse said. "I think the government has an open mind about what they're investigating."

The embattled lawmaker is complying with those orders, his lawyer said.

We feel confident once they take a look at the records and understand what happened they'll see there's no violation of any law," Strianse said.

Rep. Glen Casada is also a Franklin Republican and the House Republican Caucus chairman who has been a longtime supporter and mentor of Durham. He encouraged Durham to comply fully with the investigation

"If you break the law, you must be held accountable," he said.

The U.S. Attorney's Office for Middle Tennessee would not confirm or deny any investigation.

Durham has been the subject of several investigations, including one from the Tennessee attorney general that resulted in findings of sexual misdeeds against 22 women. During the course of that investigation, former Durham employee Benton Smith approached the attorney general in May and accused Durham of using his campaign money for his personal business.

Durham denied the allegations at the time, saying Smith — a former legislative assistant, campaign worker and employee at Durham's private business — was disgruntled.

In June, the Tennessee Registry of Election Finance opened an investigation into the campaign-finance records. Earlier this month the registry said investigators found a roughly $191,000 discrepancy between Durham's campaign finance records and his bank account records.

The investigation also referenced investments made by Durham's campaign and loans from Durham's campaign accounts.

Casada withdrew his support for Durham when the state's investigation into his campaign finances began.

Drew Rawlins, executive director of the state Bureau of Ethics and Campaign Finance that has the election finance registry within it, said it violates state law to use campaign money for personal purposes.

On Monday, Rawlins confirmed that he talked to the U.S. attorney but did not provide them with any information from the state's audit.

"We will not stop our audit because of the U.S. attorney's probe," Rawlins said.

Tom Lawless, chairman of the registry board, said earlier this month that the registry would refer any findings of illegal behavior to appropriate officials.

“There are indications there may be some serious violations, and we want to garner the facts so we can take the appropriate remedies,” Lawless said.

State officials did not have a target date to complete their investigation.

The state attorney general began investigating Durham after The Tennesseanpublished a report in January detailing allegations from three women who had received inappropriate late-night text messages from Durham's cellphone. Although Durham initially denied wrongdoing, he resigned as House majority whip and removed himself from the GOP caucus.

In July, after the final attorney general report was released, Durham also denied any sexual malfeasance but said some of the interactions in the report were true. He suspended his re-election campaign and lost to Sam Whitson, a retired Army colonel and 16-year Franklin resident, in the GOP primary in August.

Strianse worked as a federal prosecutor in Florida and Middle Tennessee before going into private practice. He has represented many high-profile clients, including former Vanderbilt University football player Cory Batey.

Batey's family hired Strianse after Batey was convicted of aggravated rape for his appeals.

Strianse also represented Brian Whitfield, the former head of Sommet Group, who was found guilty in 2014 of stealing money from clients for whom his company provided payroll services.

Sommet Center is the former name of Bridgestone Arena, which the Nashville Predators NHL hockey team calls home.