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Major political scandal led to ethics reform in Tennessee: Notorious Nashville
An invoice scam by a low-level government employee in Memphis led to a police investigation that culminated 20 years ago in a federal probe that brought down some of the state's biggest political figures.
A dozen local and state officials were arrested in 2005 on bribery charges and convicted in a case led by the FBI dubbed "Tennessee Waltz," aptly named after the famed song about a stinging betrayal. It remains one of the biggest political scandals in state history.
The case is part of the state's infamous past, but its impact stretched across decades with ethics reforms that still serve as guardrails for politicians today.
The highest-ranking public servants arrested after betraying their oaths of office include two former state senators from Memphis − John Ford and the late Roscoe Dixon. Ford, the most powerful politician caught in the FBI investigation, was convicted of accepting $55,000 in cash payoffs from an undercover agent posing as a corrupt businessman. Ford's chicanery included shepherding a bill tailored to benefit the fake company − even using the wording proposed by the undercover agent.
Dixon was convicted on bribery and extortion charges for accepting $9,500 in bribes to help pass legislation.
Police in Memphis initially investigated a tip about an invoice scam in which a contractor for the Shelby County Juvenile Court Clerk's Office accepted money for work never performed. When investigators realized the corruption extended all the way to the state capitol in Nashville, they sought help from the FBI, which has no jurisdictional boundaries.
FBI agents created a fake electronics recycling company, E-Cycle, and used informants to infiltrate state government. They also used undercover agents to pay bribes and record conversations with politicians.
An FBI agent used the name "Joe Carson" and posed as the head of E-Cycle, meeting with lawmakers, passing out fake business cards, making campaign contributions and hosting a reception with live music for politicians at the Sheraton Nashville Hotel. Federal agents were surprised at how easy it was to bribe lawmakers − and to write a new state bill the politicians were ready to pass that would have favored the fake company.
The case lasted more than three years and ensnared politicians in Memphis, Chattanooga and at the state capitol in Nashville. Those convicted and sentenced to prison included: Chris Newton, a former Republican representative from Cleveland; William Cotton, a Democratic Hamilton County commissioner; Charles Love, who had been a member of the Hamilton County school board; and Darrell Catron, a former Shelby County Juvenile Court aide.
The FBI sting led to the arrest of a father-son duo from a Memphis political dynasty. Michael Hooks Sr., a powerhouse Democrat and son of a Civil Rights pioneer − pleaded guilty to accepting $24,200 in bribes while chairing the Shelby County Commission. His son, Michael Hooks Jr., pleaded guilty to theft from a federally funded program when he was a Memphis city school board member.
The scandal resulted in the creation of new state ethics laws and an independent ethics commission.
The Tennessean is publishing a Notorious Nashville story for each year from 2000-2024. Catch up on the series here.
Beth Warren can be reached at bwarren@
This article originally appeared on Nashville Tennessean: Nashville, Memphis political corruption led to ethics reform
