Nashville club owner to plead guilty in campaign finance case against state Sen. Brian Kelsey

A Nashville club owner has struck a plea agreement for his role in what prosecutors have described as a campaign finance conspiracy to benefit state Sen. Brian Kelsey’s failed 2016 campaign for U.S. Congress.

Joshua Smith filed court documents last week indicating he would plead guilty to a single count, per an agreement with prosecutors. Smith owns The Standard, an exclusive members-only club that also operated its own state political action committee.

The move suggests Smith is now cooperating with prosecutors ahead of Kelsey's trial, scheduled for January. Kelsey, R-Germantown, has pleaded not guilty to five federal charges and last year called the case a "political witch hunt."

Kelsey continued to serve in the General Assembly this year, but he is not seeking reelection for his seat.

Kelsey and Smith were indicted last fall after federal prosecutors said they illegally shuffled "soft money" from Kelsey's Tennessee state Senate campaign committee to his authorized federal campaign committee.

The Tennessean first reported on the questionable campaign finance donations in 2017. A watchdog group later filed a complaint with the Federal Election Commission and sent a letter to the U.S. Department of Justice accusing Kelsey of potentially illegal straw donations and other campaign finance wrongdoings.

Under campaign finance law, state lawmakers cannot use their state campaign funds to benefit federal campaigns. Federal prosecutors say Kelsey shifted money from his state campaign account through Smith's PAC to spend tens of thousands on radio ads for Kelsey's failed congressional bid.

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More:More Sen. Brian Kelsey campaign transactions hint at possible straw donor issues

This article originally appeared on Nashville Tennessean: Nashville club owner Joshua Smith strikes plea in Brian Kelsey case