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Carter-Smith said money to Maddox was loan payoff

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CLOSEVIDEOS: FBI INVESTIGATION INTO THE TALLAHASSEE CRA
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CLOSEVIDEOS: FBI INVESTIGATION INTO THE TALLAHASSEE CRA
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Watch it: FBI Investigation Timeline (updated January 2018)
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CLOSEVIDEOS: FBI INVESTIGATION INTO THE TALLAHASSEE CRA
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Intelligent Utility Conservation lists its address as this strip mall on the outskirts of Nashville. However, the address is actually home to a UPS store. IUC’s purported owner may be an undercover FBI agent and his business an FBI front.
David Boucher/The Tennessean

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CLOSEVIDEOS: FBI INVESTIGATION INTO THE TALLAHASSEE CRA
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The city of Tallahassee turned over 90,000 pages to the FBI. We help you picture it.
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CLOSEVIDEOS: FBI INVESTIGATION INTO THE TALLAHASSEE CRA
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City attorney Lew Shelley advises the mayor and commissioners about an FBI investigation involving the Community Redevelopment Agency. Tallahassee Democrat
Jeffrey Schweers/Democrat

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CLOSEVIDEOS: FBI INVESTIGATION INTO THE TALLAHASSEE CRA
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CLOSEVIDEOS: FBI INVESTIGATION INTO THE TALLAHASSEE CRA
Erwin Jackson Blasts Commissioner Maddox and City Hall | 2:32

Frequent City Hall critic Erwin Jackson blasts Commissioner Maddox

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CLOSEVIDEOS: FBI INVESTIGATION INTO THE TALLAHASSEE CRA
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A federal grand jury has asked the city of Tallahassee for records involving the Community Redevelopment Agency involving top local developers and business people.
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CLOSEVIDEOS: FBI INVESTIGATION INTO THE TALLAHASSEE CRA
Watch it: What is the Tallahassee CRA? | 0:52

An explanation of the Tallahassee Community Redevelopment Agency.
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Tallahassee Downtown Improvement Authority Executive Director Paige Carter-Smith during a DIA board meeting Monday. Board members voted 4-3 to make no changes to Carter-Smith‘s employment status with the authority following revelations that she is the under federal investigation in connection to an alleged pay-to-play scheme involving City Commissioner Scott Maddox.(Photo: Hali Tauxe/Democrat)Buy Photo

Paige Carter-Smith, the longtime friend and associate of City Commissioner Scott Maddox, said through her lawyer there is nothing illegal or improper about payments her company Governance Services made to Maddox and his family.

They were payments on a real estate loan for the purchase of nine condominium units at Adams Street Lofts.

The Lofts in the headlines: Maddox in the middle: Adams Street players at heart of Governors Walk project, FBI probe

More:Condo owners sue Adams Street Lofts for financial records

An FBI search warrant released last week outlined a pay-to-play scheme in which Maddox allegedly referred clients to Governance. The firm then made payments to Maddox in exchange for using his position to get favorable action for Governance clients.

According to the warrant, an analysis of financial records showed that since November 2012, Governance made $392,000 in payments to Maddox and his wife, and $191,000 in payments to Maddox’s immediate family, including payments on credit cards owned by Governance and used by Maddox and his family.

“Recent news reports have referenced payments that Paige Carter-Smith has made to the Maddox family over the past several years. The purpose of this statement is to provide much needed context surrounding those payments,” the letter from her attorney, Stephen Webster, begins.

Today‘s headlines:

‘Presumption of innocence’: Maddox denies allegations in FBI warrant, vows not to resignMaddox colleague told FBI agent ‘Whitesnake’ to ‘back off’ Downtown Improvement Authority votes to delay action on Paige Carter-Smith‘s CEO statusBuy Photo

City Commissioner Scott Maddox during a Sep 25 CRA meeting at City Hall.  (Photo: Hali Tauxe/Democrat)

“In 2008, Paige Carter-Smith purchased real estate from the Maddox family and signed a promissory note which outlined the terms for her repayment of that loan. The contract was prepared by counsel and included a reasonable interest rate on the note. As such, the payments between Paige Carter-Smith and the Maddox family were in furtherance of servicing the debt she lawfully incurred and owed. Any attempt to categorize these debt payments as unlawful is without basis in fact.”

Carter-Smith, Governance and Maddox are named in subpoena related to the FBI investigation.

Scott and Sha Maddox and Spectrum Resources, a company listing Scott Maddox as manager, sold nine units at the Adams Street Lofts in June 2008 for $500,000 to Governance Services, which was founded and operated by Carter-Smith.

Four years later, Carter-Smith got a $500,000 note on four of the units from the now defunct Pro Bank in December 2012 and sold the other five units for $475,000 to Hunter Harp Holdings, a company owned by J.T. Burnette and Chad Kittrell. Both men and their associated businesses also were named in FBI subponeas served on City Hall and the Community Redevelopmetn Agency last yaer.

“The information that has thus far been supplied to the media and reported on is in many instances incomplete or distorted,” the statement reads. “Ms. Carter-Smith is intent on correcting the record and providing the appropriate context when the appropriate time comes, but the importance of correcting the record as to her repayment of the loan could not be ignored.”

Contact Schweers at jschweers@tallahassee.com. Follow him on Twitter @jeffschweers.

Fallout from the FBI investigation

Downtown Improvement Authority votes to delay action on Paige Carter-Smith‘s CEO statusKim Rivers resigns from Downtown Improvement Authority boardCommissioners shocked by FBI warrant; two say Scott Maddox should consider stepping downWhat happens if Scott Maddox vacates his commission seat?’Presumption of innocence’: Maddox denies allegations in FBI warrant, vows not to resign

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