Stokes funds still stoking Tennessee political fires

By: Ken Whitehouse, NashvillePost.com
October 2, 2008

While the financial and political worlds remain in turmoil as we await word on bailout packages and such, one person who was very much active in both worlds and who now sits in prison remains an issue for Tennessee Democrats and Republicans.

Barry Stokes, who pleaded guilty last month to charges of wire fraud, criminal contempt, money laundering, mail fraud and embezzlement, was a major contributor to the campaigns of Tennessee Democrats, but also sent some cash to Tennessee Republicans.

State Sen. Mark Norris of Collierville, who is the Republican caucus leader in the Senate, says that his caucus has divested itself of Stokes donations and questioned why Democrats had not done so.

Norris told NashvillePost.com: "Barry Stokes pled guilty to embezzlement Sept. 9. I contacted the Trustee in Bankruptcy to return a $1,000 contribution we had escrowed in 2006 when allegations were first levied against Stokes. The trustee appreciated my call and confirmed that such contributions were inappropriate under the circumstances and belonged to the bankruptcy estate. The funds were returned Sept. 17.

"We made good on our commitment." Norris added. "Stokes' 1Point Political Action Committee was apparently funded by a confessed embezzler. The victims are working folks whose retirement funds are at stake. I call upon the Democrats to do the same. It's blood money – innocent victims' blood, sweat and tears. How could they even think about funding their political campaigns with such ill-gotten gains?

"Unlike the Republicans, rather than return over $52,000 in contributions to the Democratic Party, the trustee said the Democrats had hired a lawyer."

Asked about Norris's charge, Tennessee Democratic Party Chairman Gray Sasser said that he was in a "unique situation."

Sasser told NashvillePost.com that "past and present employees of the Tennessee Democratic Party were victims of the fraud perpetrated by Barry Stokes. These employees lost thousands of dollars as a result of Mr. Stokes criminal activities. We are in a unique situation as both a debtor and creditor to the bankruptcy estate, and we are working with our legal counsel to make sure we safeguard the interests of our present and former employees."

Asked what that means going forward, Sasser replied, "We are working with the bankruptcy trustee to make sure we take care of the interest of our employees and remain committed to doing the right thing."