Scott Maddox, Paige Carter-Smith indicted in FBI corruption probe
Scott Maddox, Paige Carter-Smith indicted in FBI corruption probe of Tallahassee
Jeff Burlew, Tallahassee Democrat Published 11:24 p.m. ET Dec. 11, 2018 | Updated 11:24 a.m. ET Dec. 12, 2018
Jeff Burlew and Jennifer Portman breakdown FBI warrant. The search warrant seeks to require computer giant Apple to disclose communications, government records, and other information from the Apple IDs and iCloud account of Scott Maddox.
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City Commissioner and former Mayor Scott Maddox, one of Tallahassee’s most prominent politicians, has been indicted by a federal grand jury on charges he shook down city vendors for bribes, pocketing hundreds of thousands of dollars in cash in exchange for official action.
Also charged in the 44-count, 66-page indictment was Downtown Improvement Authority Executive Director Paige Carter-Smith. The sealed indictment was handed down Tuesday, according to federal court records.
Federal court documents filed today unsealing the indictment says Maddox was arrested this morning by FBI agents and Carter-Smith was scheduled to surrender to the FBI this morning. Their first appearance before a judge is set for 3 p.m.
Neither Maddox nor his aide returned phone calls from the Democrat. Maddox appeared to delete his Facebook page over night. Carter-Smith also could not be reached for comment.
The latest:
- Indictment: Scott Maddox and Paige Carter Smith face 44 counts in FBI corruption probe
- Read the indictment of Scott Maddox and Paige Carter-Smith
- As FBI indictments drop, Paige Carter-Smith resigns from Downtown Improvement Association
Maddox, in a written statement he issued in February, denied the allegations and vowed to remain in office. Carter-Smith's lawyer has also said she will be cleared of any wrongdoing.
More: 'To clear my name': Maddox paid $125K to lawyers from campaign account
City Commissioner Scott Maddox, left, and Paige Carter-Smith at the Saturday night banquet of the Greater Tallahassee Chamber of Commerce's 2017 Community Conference at the Omni Amelia Island Plantation August 12. (Photo: Hali Tauxe/Democrat)
TANGLED WEB: For complete coverage of the FBI investigation, click here.
The indictments were the first to arise out of the FBI’s investigation into alleged public corruption in Tallahassee, which began more than three years ago with the arrival of undercover agents posing as out-of-town developers and medical marijuana entrepreneurs.
Maddox’s indictment opens the door for Gov. Rick Scott to suspend him from office, which would create a vacancy on the five-person City Commission. If Maddox were suspended, commissioners would have 20 days to appoint someone to fill his seat. If they don’t, the governor gets to make the appointment.
Maddox in the middle:
- What happened in Vegas? Photo emerges of Maddox with undercover FBI agents
- 'It connects the dots': Ex-FBI agents weigh in on 'barn burning' case against Scott Maddox
- What happens if Scott Maddox vacates his commission seat?
- FBI search warrant lays out bribery case against Scott Maddox, Paige Carter-Smith
- Read the search warrant demanding Scott Maddox communications from Apple
- Adams Street players at heart of Governors Walk project, FBI probe
- Maddox's deals intersect FBI investigation
- City Commissioner Scott Maddox, associates caught up in FBI's 'big net'
On Sept. 6, 2017, the grand jury issued a subpoena at the city for communications between Maddox and his aides, including Carter-Smith. Two weeks later, the Tallahassee Democrat published a front-page photo of Maddox posing in a Las Vegas hotel room with local developer John "J.T." Burnette, three individuals he apparently didn’t realize were undercover FBI agents and a little person entertainer.
Scott Maddox and J.T. Burnette are pictured with at least three undercover FBI agents. After internal discussions and conversation with the FBI, the Democrat decided to blur the faces of the undercover agents and three unidentified individuals. (Photo: Special to the Democrat)
In February, the Democrat obtained federal court documents showing Maddox and Carter-Smith were central figures in its public corruption probe. A search warrant affidavit for Maddox’s personal emails and texts said the two engaged in a pay-to-play scheme involving their firm, Governance, Inc., and city vendors. The affidavit was sealed by a federal magistrate judge but later inadvertently posted on a federal court website.
The FBI alleged that Maddox sold Governance, a firm he started in 1999 when he was mayor, to Carter-Smith sometime between 2010 and 2012. But he continued to secretly control the company and profit from it, the documents said. Over a roughly five-year span, Governance made nearly $400,000 in payments to Maddox or Maddox and his wife and nearly $200,000 more to his family members.
The affidavit said Maddox took official actions to benefit a “ride share delivery service” that appeared to be Uber Technologies but was identified only as “Company One.” It also referred to a “waste services provider” that appeared to be Waste Pro USA but was identified only as “Company Three.”
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Photos: FBI fake-out? Anatomy of an undercover operation
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Uber hired Carter-Smith in 2015 as part of its lobbying and consulting team around the same time the City Commission began revising its regulations on vehicles for hire. She never registered as a lobbyist for the firm, however. Maddox later voted in favor of an ordinance that included provisions favorable to Uber.
Waste Pro, a trash vendor for the city and county that has longtime ties to both Maddox and Carter-Smith, paid Governance more than $170,000 over a period of years, the court documents said. The company later acknowledged it was cooperating in the federal investigation. In July, one of the company’s top executives, Ralph Mills, was spotted going into the federal courthouse in Tallahassee while the grand jury was meeting.
Maddox, an attorney who earned bachelor’s and law degrees from Florida State University, served on the City Commission from 1993 to 2003, including a stint as mayor. After several bids for statewide office, he returned to the commission in 2012.
On the night he was re-elected in 2016, Maddox was surreptitiously recorded instructing one of the undercover agents to pay $20,000 a month to Governance. Maddox allegedly told the agent that Carter-Smith was “on board” with the scheme. The agents later sent four checks for $10,000 to Governance.
Burnette was later recorded telling an undercover agent that he should not stop paying Governance and threatened to pull out of a deal if the money stopped coming.
This photo shows the three men believed to be undercover FBI agents who used aliases and cover stories as part of an investigation in Tallahassee. Pictured from left are Mike Miller, Mike Sweets and Brian Butler. The Democrat decided to blur the physical characteristics of the men after discussions with the FBI. (Photo: Special to the Democrat)
Anatomy of an FBI Fakeout:
- Southern Pines Development site offers promises but no substance
- Sean Pittman encountered 'Mike Miller,' too
- 'Mike Miller': Developer or FBI agent?
- Mystery 'developer' Mike Miller identified in photo
- Photos: FBI fake-out? Anatomy of an undercover operation
- Photos: Those under the federal microscope and those related to them
- Maddox colleague told FBI agent 'Whitesnake' to 'back off'
