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State Sen. Brian Kelsey is the subject of a grand jury probe into a complicated money trail related to his failed congressional bid, according to three people who have been interviewed by federal investigators.
Federal investigators, according to the three people interviewed, are asking questions about campaign finance transactions Kelsey made in 2016 when he sought the Republican nomination for Tennessee’s 8th Congressional District.
The grand jury probe comes more than two years after The Tennessean reported unusual interactions between Kelsey’s state campaign account, a private Nashville club with a political action committee, a federal advocacy organization and the state senator’s congressional bid.
Former Lt. Gov. Ron Ramsey told The Tennessean on Monday he was interviewed by an FBI agent in May or June.
“They wanted to subpoena me to appear before a grand jury,” Ramsey said.
Ramsey, a Republican who lives in East Tennessee, asked the agent how he could avoid being forced to appear in front of the grand jury in Nashville in response to the subpoena. Ramsey said the agent said it would require the former lawmaker to answer two questions.
The agent asked if Kelsey gave Ramsey campaign money with a request to “move it” to the West Tennessee lawmakers’ congressional campaign committee. Ramsey said Kelsey did not ask him to do such a thing.
Asked whether the FBI agent’s questions were mainly about Kelsey, Ramsey said, “Absolutely.”
Nashville councilman also interviewed by federal agents
Nashville At-large Councilman Steve Glover said he also talked to federal agents involved in the Kelsey investigation.
Glover said he participated in a brief in-person interview with the agents in Nashville in recent months, although he could not recall an exact date.
“They just had several questions about several things,” Glover said in a phone interview. “I just didn’t have much to share.”
Glover, a Republican who unsuccessfully ran for state office in 2016, gave money to Kelsey’s federal PAC months after receiving money from Kelsey’s state political action committee.
Federal agents also interviewed a current state lawmaker about Kelsey, that lawmaker confirmed Monday.
Federal investigators traveled to Nashville from Washington, D.C., to do the interview, which took place in August or September, according to the lawmaker, who spoke to The Tennessean on a condition of anonymity.
Kelsey, a Germantown Republican who represents Senate District 31 and served in the state legislature since 2009, provided an emailed statement Tuesday morning that was similar to comments he made earlier this year.
“I welcome any investigation because all donations were made in compliance with the law and on the advice of counsel,” he said, touting the contributions he received from his colleagues.
Watchdog group filed 2017 complaint
After The Tennessean’s 2017 report, a watchdog group filed a complaint with the Federal Election Commission and sent a letter to the U.S. Department of Justice saying Kelsey and others may have been involved in illegal straw donations, inappropriate coordination and other possible wrongdoing.
The letter and the complaint relied on The Tennessean’s investigation that highlighted how in July 2016, Kelsey’s state campaign account gave $106,000 to The Standard Club PAC, the political arm of a members-only club in Nashville.
The PAC later gave $37,000 to a federal political action committee called Citizens for Ethics in Government, which was founded by Andy Miller, a conservative political donor.
Citizens for Ethics in Government then gave $36,000 to the American Conservative Union, a national political group.
At the same time, The Standard Club PAC gave $30,000 to the American Conservative Union.
In the end, the American Conservative Union spent $80,000 on radio ads supporting Kelsey’s bid for Congress. Kelsey finished fourth in a crowded race for the GOP nomination, losing to David Kustoff, who continues to represent the district in Congress.
On Monday, the lawmaker interviewed by federal agents said the questions were “100%” about Kelsey’s congressional campaign and no questions were asked about The Standard.
Others could face scrutiny
While the three people interviewed were asked about Kelsey’s campaign activities, others, including Miller, could face scrutiny in the investigation.
Miller, along with former House Speaker Glen Casada, R-Franklin, and others were involved in a series of transactions between Kelsey’s state campaign accounts and the Standard Club’s PAC.
Another person who could face questions from the grand jury’s inquiry is Kelsey’s wife, Amanda Bunning.
Bunning, who previously worked as an assistant to U.S. Senate Majority Leader Mitch McConnell, R-Kentucky, and is the granddaughter of former U.S. senator and baseball player Jim Bunning of Kentucky, served as the director of government affairs for the American Conservative Union when the ads for Kelsey’s campaign ran in 2016.
Bunning signed a document filed with the Federal Election Commission related to the American Conservative Union’s $80,000 ad buy in support of Kelsey’s campaign.
Bunning and Kelsey married in January 2018. Bunning, who did not respond to a request for comment, currently works for The Ingram Group, a political consulting firm.
When the American Conservative Union bought the ads, the head of the group praised Kelsey. “If voters in western Tennessee are looking for a proven leader with a conservative track record, the decision is easy,” Matt Schlapp, who heads up the American Conservative Union, said at the time. “Brian Kelsey is the real deal.”
In his statement on Tuesday, Kelsey said, “I sought and was humbled to receive the public endorsement of the American Conservative Union in my congressional race. My reelection committee has never made a donation to ACU, nor did I have any conversations with anyone at ACU during my congressional campaign after they publicly endorsed me.”
Overall, Kelsey’s actions have raised questions about potential straw donations, a prohibited practice where contributions are made to a candidate on another person’s behalf.
In the Campaign Legal Center’s complaint, the group accused Kelsey of violating straw donor prohibitions by purportedly orchestrating the money trail from his state campaign account to the American Conservative Union. He may have also violated straw donor laws when he gave campaign contributions to lawmakers who provided donations to his federal campaign, according to the complaint.
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Reach Joel Ebert at jebert@tennessean.com or 615-772-1681 and on Twitter @joelebert29.
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