$500M RICO Lawsuit Rocks Memphis City Council: Lawsuit Seeks State Takeover of Memphis in ‘More for Memphis’ Scheme
Public Affairs Staff on December 2, 2024
MEMPHIS, TN— In a scandal that could upend Memphis politics and governance, Minister Monique Wade filed a staggering $500 million RICO (Racketeer Influenced and Corrupt Organizations Act) and Viewpoint Discrimination lawsuit against the City of Memphis, City Council members J.B. Smiley and Jerri Green in their official capacities, and others tied to the controversial “More for Memphis” ordinance. The 73-page lawsuit accuses city officials of fraud, racketeering, and constitutional violations, with allegations so severe they demand immediate federal and state intervention.
Adding to the controversy, City of Memphis employees Brooke Hyman, Chief Administrative Officer, and Brianna Owens, Assistant Council Attorney, refused to accept service of the lawsuit on December 2, 2024. According to the server, they called Attorney Allen Wade, who instructed the server to return another day, causing delays and raising questions about obstruction of justice.
The lawsuit seeks far-reaching remedies, including the suspension of the council’s authority to allocate taxpayer funds, emergency injunctive relief, and a state takeover of city operations. It alleges an elaborate scheme to misuse public funds and enrich political donors connected to More for Memphis, Seeding Success, and Tennessee Prosperous.
Joe B. Kent: The Media – The 4th Branch of Government- Memphis’ Watchdog Exposes More for Memphis and a Web of Corruption
Joe B. Kent, a renowned investigative journalist and relentless public corruption fighter, has long been a thorn in the side of Memphis’ entrenched political establishment. Known for his deep dives into questionable public projects and misuse of taxpayer funds, Kent was the first to blow the whistle on the “More for Memphis” scheme. His groundbreaking reporting not only exposed the glaring lack of transparency behind the $100 million funding claim but also raised critical questions about its ties to politically connected entities like Seeding Success and Tennessee Prosperous.
But Kent’s fight against corruption didn’t start with More for Memphis. Simultaneously, he has been a watchdog for Memphis and Shelby County, uncovering systemic mismanagement and corruption across various public agencies, including:
- Memphis Light, Gas & Water (MLGW): Kent exposed financial irregularities and mismanagement in the state’s largest utility provider, raising alarms about the misuse of ratepayer dollars.
- The Shelby County Agricenter: His reporting uncovered a pattern of cronyism and fiscal mismanagement in initiatives.
- Memphis Area Transit Authority (MATA): Kent highlighted operational inefficiencies and a lack of oversight in the city’s public transportation system, which has struggled to serve Memphis residents effectively.
- Greater Memphis Workforce Development Board: His investigative work revealed how funds meant to uplift the city’s workforce were mishandled, with little to show in terms of tangible benefits for job seekers.
Kent’s coverage of the More for Memphis scheme, in particular, laid the groundwork for the RICO lawsuit filed by Minister Monique Wade, amplifying the voices of those demanding transparency and accountability. Kent’s reporting has not only revealed the depth of corruption in Memphis but also underscored the urgent need for federal and state oversight. His contributions to the fight for good governance are a testament to the power of investigative journalism in holding public officials accountable.
A Scheme to Defraud Taxpayers
At the heart of the lawsuit is the “More for Memphis” ordinance, which claims to have secured $100 million in private philanthropic funding to promote economic mobility. Wade’s lawsuit asserts that this claim is false, a fabrication intended to deceive the public into approving a fraudulent scheme.
The complaint accuses council members and city officials of concealing material facts about the ordinance and its funding, asserting that taxpayer dollars were earmarked to benefit entities tied to political donors. The ordinance, not yet officially passed, has already caused public outrage for its lack of transparency and alleged conflicts of interest.
Counts in the Lawsuit
- Fraud
Wade alleges federal and state fraud violations, including false representations about $100 million in funding. Under 18 U.S.C. § 1343, wire fraud charges could arise from interstate communications used to propagate these false claims.
- RICO Violations
The lawsuit accuses the defendants of operating an enterprise under 18 U.S.C. § 1962(c), engaging in a pattern of racketeering activities such as:
- Wire Fraud: Disseminating false claims electronically.
- Mail Fraud: Circulating fraudulent information via public records.
- Conspiracy: Collaborating with affiliated organizations to advance the scheme.
- Official Misconduct
Under Tennessee Code Annotated § 39-16-402, the defendants are accused of abusing their public positions to benefit private interests, a felony under state law.
- Fraudulent Concealment
The complaint alleges deliberate withholding of material facts to mislead taxpayers and push the ordinance forward without scrutiny.
- Viewpoint Discrimination
The lawsuit cites First Amendment violations, highlighting how dissenters were mocked, interrupted, and harassed during the November 26 City Council meeting, while ordinance supporters were given extended speaking time and deference.
- Obstruction of Justice
By refusing to accept service of the lawsuit, Hyman, Owens, and Allen Wade are alleged to have obstructed justice under 18 U.S.C. § 1505, further delaying legal accountability.
Relief Sought
Wade’s lawsuit demands sweeping measures, including:
- Emergency Injunctive Relief: Halting the ordinance’s enactment until:
- Proof of the $100 million funding is provided.
- Certified audited financial statements are submitted to the court.
- State Takeover: Calling for the Tennessee Comptroller of the Treasury to assume control of Memphis governance, mirroring the state’s intervention in Mason, Tennessee.
- $500 Million in Damages: Compensatory and punitive damages for harm caused to taxpayers and public trust.
- Transparency Reforms: Mandating audits and disclosure of political donations tied to More for Memphis and its affiliated entities.
- Criminal Accountability: Seeking charges against public officials for fraud, conspiracy, and racketeering if the allegations are substantiated.
Criminal Consequences for Public Officials
If the allegations are proven, city officials and council members involved could face severe legal repercussions, including:
- Fraud: Up to 20 years in prison for wire or mail fraud under federal law.
- RICO Violations: Treble damages, asset forfeiture, and up to 20 years in prison for racketeering.
- Obstruction of Justice: Federal charges for interfering with legal processes, carrying significant penalties.
- Official Misconduct: Removal from office and imprisonment under Tennessee law.
Intended Misuse of Taxpayer Funds
The lawsuit highlights that the ordinance’s claims were designed to pass under false pretenses, potentially misdirecting millions in taxpayer dollars to benefit politically connected entities. Wade’s complaint alleges that the ordinance was never about poverty alleviation but rather a calculated scheme to enrich a select few at the expense of Memphis residents.
Kash Patel’s Corruption Crusade and Why Memphis Could Be His Next Target
Kash Patel, the former Chief of Staff to the Department of Defense and a staunch advocate for rooting out government corruption has consistently emphasized the need for transparency and accountability in public office. Known for spearheading high-profile investigations into political and financial misconduct, Patel’s leadership at the FBI under President Trump could make Memphis a prime focus. With allegations of fraud, racketeering, and systemic corruption surrounding the More for Memphis ordinance, Patel’s FBI would likely be drawn to this case as a potential landmark investigation. The scale of the alleged intended misuse of taxpayer funds, coupled with the involvement of high-ranking city officials, fits Patel’s mission to expose and dismantle corruption that undermines public trust and misappropriates public resources. Should he take interest, Memphis may find itself at the epicenter of a federal investigation aimed at restoring integrity to its governance.
FBI and DOJ Investigations Likely
With allegations of racketeering, fraud, and obstruction, the case could attract federal attention. The FBI and Department of Justice are expected to scrutinize the role of elected officials, city employees, and affiliated organizations in this elaborate scheme.
”This is not just a local issue—it’s a national concern,” said a local political science professor who spoke on conditions of anonymity. “If these allegations are true, Memphis could become a cautionary tale of what happens when political power is exploited and abused for personal enrichment or to favor politically connected donors at the expense of public trust and taxpayer funds.”
Conclusion
Minister Monique Wade’s lawsuit is more than a legal battle; it’s a call to arms for accountability, transparency, and the restoration of trust in Memphis governance. With the city’s credibility hanging in the balance, the outcome of this case could set a precedent for how municipalities nationwide handle allegations of corruption and fraud. For Memphis residents, the stakes couldn’t be higher.
About Post Author
