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Ethics complaint against Mt. Juliet mayor dismissed

Angie Mayes • Sep 14, 2018 at 9:25 PM

The Tennessee Ethics Commission dismissed an ethics complaint against Mt. Juliet Mayor Ed Hagerty filed by his 2016 mayoral election competitor, Jim Bradshaw.

Bradshaw, who lost the election, 7,000-5,621, filed the complaint April 6 that alleged Hagerty, violated the conflict of interest disclosure statutes for six years.

The complaint said Hagerty has rental property, which resulted in more income than Hagerty listed on his financial disclosure statements. He was required by state law to report any private income greater than $1,000.

Hagerty owns 10 rental properties, which Bradshaw alleged could generate possible rental income, according to the complaint. In Hagerty’s disclosure, he reported income from his wife’s job was the only income the family had.

Hagerty, in response to the complaint, submitted disclosure reports from 2013-2018 to the attorney general. On April 20, he submitted an amended financial disclosure statement that listed the rental properties.

On April 26, the complaint was forwarded to the Tennessee attorney general to conduct a preliminary investigation. The attorney general’s investigation was purely a fact-finding mission and did not determine an outcome for recommendation as to whether there was a violation of the rule.

Assistant Attorney General Anna Waller interviewed Bradshaw on May 9, 2018. 

“Bradshaw stated that, prior to the 2016 election, he learned from a few constituents that Ed Hagerty owned investment rental properties, which he did not disclose, as sources of income on his statements,” according to the paperwork associated with the investigation.

“Bradshaw stated that he did not want to initially disclose the information but decided to file the complaint after he learned that Hagerty had not disclosed the sources of income on his 2018 statement.”

Waller interviewed Hagerty on May 11. During the interview, he affirmed he did have rental properties in Mt. Juliet and Sevier County. He listed the nine residences, plus an additional one in Sevier County. In addition to those properties, Hagerty owns his home in Mt. Juliet.

Hagerty appeared before the attorney general on April 20, 2018 and stated that he did not list the rental properties, “he did not disclose the rental income on the statements because he did not earn substantial income on the properties during 2013-2018, after factoring in expenses associated with taxes and upkeep of the properties,” the report stated.

According to the report by the attorney general, “Hagerty stated that he uses money received as rental income to pay for taxes, upkeep, and maintenance of the investment properties. Mr. Hagerty stated that these costs include carpet replacement, interior painting, HV AC repairs, roof repairs, plumbing repairs, and other expenses when tenants vacate. He further stated that some of his rental properties have been vacant at times between 2013 and 2018.”

The complaint was then forwarded to the Department of Ethics and Finance on July 12. That board met July 25, and the case was dismissed. The information from the Tennessee Election Commission stated that Bradshaw had the right to “seek reconsideration of this order and/or judicial review.”
Bradshaw would have 60 days – until Sept. 23 – to request a judicial review, according to the Tennessee Election Commission. He said he will not file a grievance because, “I would have to pay [Hagerty’s] attorney fees. This has been a lot of pressure on me and has taken a lot of time.”

Bradshaw said he is not mad about the results.

“I am very disappointed with the result,” he said. “The commission, except for one person who was not there, voted unanimously to dismiss the complaint.”

He said despite what some people may say, he’s not upset about losing the race. In fact, he said he has run three times, against Hagerty, fire Chief Jamie Luffman and Linda Elam.

“I’m not upset, and this is nothing against Ed, but I think he should follow the same rules as everyone else. If he had omitted the information one year, that would be something. But he left it out from 2013 to 2018. That’s more than just a mistake.”
Bradshaw is running for District 4 city commissioner this year. Because he lost the other races, he said “I’m used to losing. There are 6,000 registered voters in District 4. There are also a lot of things to vote for, so I’m hoping more people will come out and vote.”

Hagerty said, “the decision speaks for itself” and had no further comment.

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