Former Judge Casey Moreland arrested by FBI on obstruction of justice charges

A cash hand-off in a parking garage. Thousands of dollars stolen from a program meant to help drug addicts in recovery. Repeated attempts to push a witness to lie under oath.

In a stunning 17-page criminal complaint released Thursday, the FBI outlined new allegations against former Nashville Judge Casey Moreland, who is at the center of a yearlong corruption investigation.

Moreland was charged with interfering in that investigation last March, when investigators say he gave a $6,100 bribe to a purported former paramour in an attempt to pressure her to refute allegations against him.

The FBI says he continued to interfere with the investigation while he was awaiting trial on that charge.

Federal prosecutors on Thursday charged the embattled former judge with destroying evidence and tampering with a witness, two new obstruction charges that carry a combined maximum sentence of 40 years in prison.

More: Drug court foundation tied to Casey Moreland repays nearly $9,000

More: Casey Moreland pleads not guilty to tampering, bribery charges

The new criminal complaint, written by FBI Special Agent Mark Shafer, said Moreland orchestrated the theft of thousands of dollars from the Davidson County Drug Court Foundation over the course of several years. After the FBI launched an investigation into Moreland's conduct, Shafer said, the former judge asked an accomplice to destroy the evidence.

As recently as Feb. 13, Moreland suggested ways the accomplice — who was working with the FBI — could lie to a grand jury investigating the theft, according to the complaint. The complaint includes a summary of lengthy recorded conversations between Moreland and the female accomplice, identified only as "CS-1."

The new charges appeared to blindside Moreland and his attorneys.

Moreland was getting ready for work Thursday morning when agents arrived at his house to arrest him, according to his attorney Peter Strianse.

Strianse said he received the government's criminal complaint moments before Moreland made an initial appearance in federal court wearing a smudged black sweater and shackles around his ankles.

"We've not had an opportunity to evaluate the strength of the government's case," Strianse said outside of the federal courthouse in Nashville on Thursday. "It certainly caught me off-guard. I didn't expect to be here talking to you in the rain this afternoon."

During Moreland's Thursday court appearance, U.S. Magistrate Judge Joe Brown set a preliminary hearing on the latest charges for next Tuesday. Moreland will remain in the custody of the U.S. Marshals Service until then.

"I know I've gone over this form with you before," Brown said to Moreland, referring to documents enumerating his rights. "I doubt you have any questions."

Corruption investigation began in January 2017, followed quickly by attempts to obstruct, FBI says

The FBI investigation into Moreland began in January 2017 after allegations surfaced that he helped people he knew in exchange for benefits — including sexual favors, travel and lodging.

His attempts to hamper that investigation began early, authorities say, including the March 2017 attempt to bribe a former lover.

► More: Timeline: Investigation of Judge Casey Moreland

In the new complaint, Shafer suggests the $6,100 bribe came from the stash of money Moreland had siphoned from the addiction recovery program.

'Thousands' taken from Drug Court foundation, according to FBI

Moreland started the drug court program more than a decade ago to provide addicts with substance abuse treatment instead of sending them to jail.

The drug court foundation was started later to help support the court's work. Moreland "took an active role in the Drug Court Foundation's management," according to the complaint.

As a General Sessions judge in Nashville since 1998, Moreland heard mostly misdemeanor criminal cases. His 2017 resignation in the face of criminal charges brought scrutiny on the drug court's finances.

An audit ordered after his resignation forced the foundation to repay nearly $9,000 in public finds that sent private employees to conferences.

► More: Drug court foundation tied to Casey Moreland repays nearly $9,000

The Davidson County Drug Court Foundation has repaid the $8,868, fulfilling one of three recommendations from the internal city audit completed in August.

Around 2012, the foundation launched the Court Foundation Center, "an outpatient treatment facility designed to provide substance abuse counseling services" to people who passed through the court system, the complaint stated.

The woman identified as "CS-1" worked at the center, according to the complaint.

The complaint stated that the foundation paid for treatment for patients who were referred by the drug court. Other people paid for their treatment out of pocket.

The center kept records of those payments.

"Until in or about 2016, with Moreland's knowledge and approval, CS-1 kept the cash paid by self-pay clients for herself in addition to billing the Drug Court Foundation for her time," the complaint said. "Between the creation of the Court Foundation Center and the end of 2016, the volume of self-pay clients increased, and by early 2016 CS-1 was keeping thousands of dollars in cash each month."

In the spring of 2016, "CS-1 became uncomfortable with the large quantities of cash she was taking," the complaint said. Investigators say Moreland suggested that he start keeping half of her haul.

"He told her to bring half of the cash in an envelope to his personal office in the General Sessions courthouse" each month, the complaint said.

Later in 2016, the complaint said, "CS-1" began funneling all of the cash to Moreland, in monthly installments left in an envelope on his desk.

In February 2017, after the federal investigation began, Moreland and "CS-1" met in the courthouse parking garage, where he handed her an envelope of cash, the complaint said. Moreland, who was aware of the investigation, asked her to store the cash in a lockbox, according to the complaint.

Investigators believe Moreland used that cash in the March 2017 bribery attempt.

Later, the complaint said, Moreland "suggested that CS-1 destroy all records that would reflect cash paid to the Court Foundation Center."

"I believe there is probable cause to believe that Moreland knowingly directed the destruction of records in a Federal investigation," Shafer wrote.

In 2018, "CS-1" agreed to record conversations she had with Moreland about their scheme. During a Feb. 9 lunch, Moreland told the woman, "There's no way it'll come out. Unless you say something," according to the complaint.

Moreland also asked the woman to tell the grand jury he "never had anything to do with that place" and suggested explanations for the missing records and money, the complaint continued.

Then, on Feb. 14, "CS-1" recorded a phone call with Moreland recounting her testimony before the grand jury.

"CS-1 also advised Moreland that, during her grand jury testimony, she had 'told them about you talking to me about tearing up the receipt book. They know all of it now. I couldn't lie,'" the complaint read.

"After a long pause, Moreland responded. 'All right.'"

Reach Adam Tamburin at atamburin@tennessean.com and 615-726-5986. Follow him on Twitter @tamburintweets.