An FBI special agent disclosed communications between ex-politicians and an aide, revealing a covert operation. Former Rep. Robin Smith resigned after admitting to honest services fraud involving a scheme with ex-Speaker Glen Casada. They directed lawmakers to use Phoenix Solutions for taxpayer-funded programs. Casada and the aide face multiple charges including fraud and money laundering. Messages suggest efforts to conceal involvement in gaining additional business from the House Republican Caucus. Prosecutors detailed how funds were allegedly laundered through various companies.

Financial transactions were outlined by an FBI forensic accountant showing how money flowed among entities linked to the accused. Over $50,000 was reportedly laundered in early 2020. Funds initially invoiced by Rivers Edge Alliance were redirected to Phoenix Solutions and eventually reached the aide despite his lack of formal association with the company. The financial distribution revealed specific percentages allocated to each party involved.

Secret Communications and Deceptive Tactics

Communications between key figures exposed their attempts to mask involvement in illicit activities. Messages indicate strategic planning to avoid detection while securing additional campaign business from the House Republican Caucus. These exchanges highlight the lengths they went to maintain secrecy.

Former aide Cade Cothren suggested altering his voice during calls with caucus members to remain undercover. In November 2019, Cothren reminded Casada to deny any connection to Phoenix Solutions. Casada believed public memory would fade within a year, minimizing potential repercussions. Such tactics underscore their intention to manipulate perceptions and evade scrutiny, demonstrating premeditated actions to cover their tracks.

Money Laundering Mechanism Uncovered

Testimony from an FBI forensic accountant delineated the complex pathway of funds among interconnected entities. Payments originating from state resources were funneled through various companies controlled by the accused. This intricate network facilitated the transfer of substantial amounts without immediate detection.

Rivers Edge Alliance, managed by Smith, issued invoices totaling nearly $11,000 for mailers produced on behalf of several representatives. After receiving payment from the state, Rivers Edge Alliance transferred most of the funds to Phoenix Solutions, which subsequently passed them to Cothren. Despite not being affiliated with Smith's company, Cothren received almost all the money. Charts presented by the forensic accountant demonstrated the precise allocation: 25% to both Smith and Casada, 30% to Cothren, with the remainder reinvested into Phoenix Solutions. This systematic redistribution reveals a deliberate effort to disguise the origin and destination of these funds, illustrating the depth of their alleged conspiracy.