MEMPHIS, Tenn. — State Sen. Brian Kelsey (R-Germantown) was indicted by a federal grand jury Friday along with a Nashville social club owner as part of an alleged campaign finance scheme, the Department of Justice said Monday.  The alleged scheme benefited Kelsey’s 2016 campaign for U.S. Congress. Joshua Smith of Nashville is also accused in the indictment.

If convicted, the DOJ says the men could face five years in prison on each of several counts. They are scheduled for their first court appearance Nov. 5. The FBI is also investigating.

Below is a press release from the Department of Justice:

“According to court documents, Kelsey, 43, of Germantown, and Joshua Smith, 44, of Nashville, conspired to and did secretly and unlawfully funnel what is commonly referred to as “soft money” from Kelsey’s Tennessee State Senate campaign committee to his authorized federal campaign committee.

“Kelsey and others also caused a national political organization to make illegal, excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy and to cause false reports of contributions and expenditures to be filed with the Federal Election Commission (FEC).

“The indictment alleges that Kelsey, Smith, and others orchestrated the concealed movement of $91,000 to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election, and that the conspirators caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated
expenditures.

“Kelsey and Smith are charged with conspiracy to defraud the FEC, illegally transferring “soft money” as a federal candidate and his agent, and illegally transferring “soft money” as a state officeholder and his agent. Kelsey is also charged with making excessive contributions to a federal campaign and accepting excessive contributions.”