After a year-long investigation, federal prosecutors have charged the Rutherford County sheriff for his role in selling e-cigarettes to inmates. Robert Arnold is accused of using his authority to make his side business more profitable and lying about his involvement.
In 2013, the U.S. Attorney in Nashville says Sheriff Arnold helped start a company called JailCigs with his chief administrative deputy Joe Russell and with his uncle from Georgia, John Vanderveer. The indictment says each of them invested $3,000 in the company. They planned to sell mail-order e-cigarettes to family members, who would then get them to inmates.
Prosecutors say Arnold’s name is not on the incorporating documents. But they do have a $3,000 check written within just a few days of the two other partners. “Investment” is written in the memo line.
JailCigs offered a commission to jail administrators — $5 per e-cigarette, according to the indictment.
Here’s a line taken from some of the company’s marketing materials: “You just mi$$ed the opportunity to easily earn THOUSAND$ for your jail!!!”
More:
Read the full 30-page indictment
The business itself wasn’t necessarily illegal. But prosecutors say Arnold used his position as sheriff to promote sales in Rutherford County’s jail and elsewhere. For instance, Arnold allowed the e-cigarettes to not be considered contraband.
Acting U.S. Attorney Jack Smith says Arnold also misrepresented his involvement. Arnold told multiple reporters during a series of TV interviews that he didn’t make any money from the venture.
“The indictment alleges that the day before this statement [to reporters] was made, Arnold had deposited a check for $3,900 from JailCigs into his own bank account,” Smith said at a press conference Friday.
In total, prosecutors say Arnold made nearly $67,000 from 2013 to 2015. Russell and Vanderveer made slightly less money and also face felony charges in the 14-count indictment. The charges include fraud, bribery, extortion, and conspiracy. There’s also an obstruction of justice charge. The men are accused of trying to destroy evidence in April 2015 as they first learned of the investigation.
If convicted, they could face more than five years in prison. Arnold turned himself in to federal authorities this morning and was released on a $250,000 bond.
On Friday, fellow Republican lawmakers began suggesting Arnold, who was re-elected in 2014, should resign.
“This distraction makes it impossible for Sheriff Arnold to continue to uphold the duties of his office, including keeping the good people of Rutherford County safe,” state Sen. Jim Tracy said in a
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