The videos and stories below (from credible sources, i.e., Newspapers, etc.,) reveal how widespread North Carolina's Public Corruption is and how far it reaches. From Charlotte-Meck. City-County Gov't branches, all the way to Raleigh (Governor's office), it runs deep. If your considering relocating here or doing business in NC, please do your research and know what your getting into.
North Carolina is a state that's beautiful on the surface but stinking with Public Corruption underneath.
(First Video: Guilford County, N.C. Sheriff Deputies under the direction of a Felon work out a deal to erase the criminal record of a UNC coed if she sexually induces an innocent victim with knowledge of public corruption into a trap where he would be neutralized. The FBI busted them of course.)
(Second Video: Tiffany Wright's biological Grandmother Shirley Boston, speaks out to the NY media about her granddaughter's death. Tiffany a Black Teenage girl who wanted to become an Attorney, lived in North Carolina and was murdered.
The DA's office (Charlotte-Meck. County) handling her case didn't want to proceed with the investigation even though there was sufficient evidence.
I also know that per Charlotte-Mecklenburg DSS Ms. Boston was not allowed to attend Tiffany's funeral, nor will Charlotte officials tell her where Tiffany is buried. This is a shame! I guess local Charlotte DSS and Law Enforcement Officials are desperately trying to hide Negligence in Tiffany's death.
A history of elections hearings
The State Board of Elections will convene hearings into the campaign finance activities of former Gov. Mike Easley.
The stakes for Easley will be high. Over the last decade, the board has established itself as a first step in Corruption Investigations. The board's hearings helped lead to the downfall of an Agriculture Commissioner, House member and House Speaker.
1998: Hog farmers and Republican House leaders
2002: Meg Scott Phipps
2006: Jim Black
2007: Mary McAllister
2007: Thomas Wright
2009: Mike Easley
Federal Judge Rejects BOFA Deal With SEC
A Federal judge on Monday rejected a $33 million settlement between the Securities and Exchange Commission and Bank of America, asserting that the agency bungled its basic job of protecting investors from the wrongdoing of executives.
In a scathing critique, Judge Jed S. Rakoff said the costs of the settlement would essentially be borne by the victims, in this case Bank of America's shareholders. The SEC had accused Bank of America of failing to adequately disclose plans to allow billions of dollars in bonuses to be paid to Merrill Lynch executives before shareholders were asked to approve a marriage between the two companies.
The SEC agreed to allow Bank of America -- and by extension its investors -- to pay $33 million to settle the charges without admitting fault. Rakoff called this arrangement a "contrivance designed to provide the SEC with the facade of enforcement" that nonetheless "victimizes" shareholders.
The ruling is a setback for an agency that is seeking to burnish its image after being roundly criticized for inaction in the months leading up to the financial crisis. And it comes as other regulators appear to be eyeing charges against top Bank of America executives. New York Attorney General Andrew M. Cuomo sent sharply worded letters to Bank of America recently that strongly signaled his intent to file securities fraud charges against the bank's executives related to the disclosures.
A person familiar with the Cuomo's investigation said Monday that his office is in the final stages of drawing up charges against senior Bank of America executives.
Rakoff did not only direct his criticism at the SEC. He also attacked Bank of America's top executives for attempting to shield themselves at the expense of the company's shareholders.
"This case suggests a rather cynical relationship between the parties: the S.E.C. gets to claim that it is exposing wrongdoing on the part of the Bank of America in a high-profile merger; the Bank's management gets to claim that they have been coerced into an onerous settlement by overzealous regulators," Rakoff wrote in his order. "And all this is done at the expense, not only of the shareholders, but also of the truth."
February Trial Ordered
Rakoff ordered that the case go to trial in February. The SEC and Bank of America each said Monday that they are reviewing their next legal steps. The SEC could move forward, drop the matter, appeal Rakoff's decision or renegotiate the agreement.
In reviewing the settlement, Rakoff said he wanted to know why the SEC didn't charge individual executives at Bank of America and Merrill Lynch who oversaw the allegedly faulty disclosures. The SEC said that Bank of America's executives relied on advice from their lawyers and that there was no evidence they intended to mislead shareholders. Bank of America, meanwhile, said it was settling to avoid the hassle of an extended, expensive case against one of its regulators. It also claimed that it had done nothing wrong.
Rakoff was not persuaded.
"It is not fair, first and foremost, because it does not comport with the most elementary notions of justice and morality, in that it proposes that the shareholders who were the victims of the Bank's alleged misconduct now pay the penalty for that misconduct," Rakoff wrote.
Rakoff also had harsh words for the SEC's contention that the settlement would punish Bank of America's executives by diminishing their reputation in the eyes of the bank's shareholders.
"The notion that Bank of America shareholders, having been lied to blatantly in connection with the multi-billion-dollar purchase of a huge, nearly-bankrupt company, need to lose another $33 million of their money in order to [quoting from the SEC's brief] 'better assess the quality and performance of management' is absurd," Rakoff wrote.
Injunction Criticized
In addition, as part of the settlement, the SEC is seeking an injunction barring Bank of America from violating securities laws again. But because Bank of America maintains that it did nothing wrong, such an injunction would mean nothing, Rakoff said.
"Notwithstanding the injunctive relief here sought by the S.E.C., the Bank would feel free to issue exactly the same kind of proxy statement [omitting bonuses] in the future," he wrote.
SEC spokesman John Nester said the agency continues to believe the proposed settlement "balanced all of the relevant considerations" and said it would review Rakoff's order.
Bank of America spokesman Scott Silvestri said the firm disagrees with Rakoff's ruling. "Bank of America believes the facts demonstrate that proper disclosure was made to shareholders about Merrill bonuses. We are prepared to prove that through litigation," he said.
Rakoff, of the Southern District of New York, is said to be a bit of a legal agitator who injects his views into settlements between other parties. For example, in 2003, he refused to consent to an SEC settlement with the telecommunications company WorldCom, which was accused of a massive accounting fraud. Rakoff boosted the financial penalty and altered the terms of the settlement to benefit shareholders.
What's next for Charlotte-Mecklenburg DSS Probe?
Mecklenburg officials prepared this update for the 2:30 p.m. Audit Review Committe meeting.
The suggestions were released in response to reports of misspending at the Department of Social Services. Officials cannot fully account for tens of thousands of dollars meant to help children and poor families.
Details emerged in June of missing and altered receipts from donations meant to buy Christmas gifts for needy kids. In one case, a $10,000 check was made out to a DSS employee. Charlotte-Mecklenburg police are investigating.
The Audit Review committee is overseeing an internal county probe into the matter.
Among the recommendations:
* Additional audits of Target vouchers, to identify any fraud or theft, and to learn why there was an increase in vouchers for the store.
* Studying whether to make county-wide changes to its financial structure.
* Considering the need for adding three members to the county's internal audit staff.
Also on today's agenda: The makeup of the Audit Review Committee itself.
Two of the five committee members are county administrators – County Manager Harry Jones and General Manager John McGillicuddy.
County commissioners Bill James and Harold Cogdell have said the arrangement undermines public confidence in the panel's work.
DSS hires politically-connected during "Freeze"
While Mecklenburg County is cutting some jobs, the county's Department of Social Services has been hiring.
The NewsChannel 36 I-Team discovered DSS has hired 30-40 positions, many of them managers and several filled with candidates who have political connections.
The DSS hiring freeze was in effect when Mary E. Wilson joined the department as director last July. But in the name of reorganizing the department, DSS has hired dozens of new employees, including the daughter of Charlotte's police chief, the daughter of a Superior Court judge and the wife of a city councilman who is running for mayor.
DSS hired Samara Foxx, the wife of at-large councilman and mayoral candidate Anthony Foxx, last July.
Her salary as Division Director II was $100,000 a year.
Foxx's hiring raised questions among some DSS staffers since the position was posted on July 17 and taken down the very next day.
For months, the I-Team has asked DSS in writing for public records showing when the job was posted. At first a department spokeswoman told us that legal counsel had advised her the records were confidential personnel records. After our repeated requests for only the public portion of the records, DSS sent us a two-page letter detailing the job posting.
The letter says in part, "The creation of Ms. Foxx's position was an initial step in the re-organization of DSS, which was approved by the county's executive team."
Charlotte-Meck. County Commissioners Chair Jennifer Roberts told us by phone from Washington, "I did not realize that opening was posted for such a short period of time. It's concerning. We pride ourselves on being open, transparent, equal and fair. I can't imagine why the posting period would not be available to reporters."
After DSS Director Mary E. Wilson gave Samara Foxx the job, Wilson's husband Cornell donated $4,000 -- the legal maximum -- to Anthony Foxx's mayoral campaign.
Foxx Campaign Manager Bruce Clark said Wilson and Foxx had worked together in the past but declined comment on the hiring, saying it was a county decision.
Foxx is not the only person with political connections to be hired by DSS since the "hiring freeze" went into effect.
Public records show DSS hired Hollye Monroe, the daughter of CMPD Police Chief Rodney Monroe, on Jan. 14 as a Management Analyst. Her salary: $46,613.60 per year. Our phone messages to Monroe's public information officer and chief of staff were not returned.
DSS also hired Tracey Evans, the daughter of Superior Court Judge Yvonne Mims-Evans, on Feb. 11 as a Social Services Manager at a salary of $57,380.95 per year. Judge Mims-Evans told us in a brief telephone interview that she had nothing to do with the hire.
County Manager Harry Jones e-mailed us a two-line response saying, "These individuals were hired within our policies and without regard to who their parents or spouses are."
Neither Jones nor DSS Director Mary E. Wilson responded to our requests for an on-camera interview.
But County Commissioner Bill James says the hiring smacks of political patronage and in his words "just smells bad." Commissioner James says the hiring should be investigated.
How system failed 15-year-old girl (Tiffany Wright) gunned down at a Charlotte, NC School bus stop
Tiffany Wright stood alone in the dark, waiting for her school bus.
It was just before 6 a.m., and her foster grandmother had walked back home to get Tiffany's water bottle.
Tiffany, 15, was eight months pregnant but determined to stay on track in school. She wanted to be a lawyer. And after just a few weeks at Hawthorne High, she had impressed teachers as smart and ambitious, despite a difficult childhood.
At 5:51, Tiffany sent a text.
"Wheres the bus?"
One stop away, replied her friend, already on the bus.
At 5:55, as the bus lumbered toward Tiffany's stop, people began calling police to report gunshots.
A school bus dispatcher radioed Tiffany's bus driver: Change course - something's happening ahead.
Tiffany lay dead in the road, shot in the head, that morning, Monday, Sept. 14. Her baby girl was delivered at the hospital and lived a week, but died Sunday.
Nobody's charged in the killings, but police call Tiffany's adoptive brother, Royce Mitchell, a "person of interest."
In the months before she died, local agencies took steps aimed at stabilizing her home life and keeping her safe. But her story exposes failures in the system that was supposed to protect her.
Among the missteps:
•In February, a Mecklenburg court clerk appointed Mitchell as Tiffany's temporary guardian — even though he was a felon who served time in federal prison. He was also tried in 2006 for murder, but found not guilty. And last year, he was accused of domestic violence, though the case was dismissed.
•In July, social workers told police that Mitchell, 36, might have committed statutory rape with Tiffany, but police didn't question him about it for seven weeks, and didn't charge him with the rape until after Tiffany was killed.
•This month, Mecklenburg social services failed to cut off communication between Tiffany, who was in foster care, and Mitchell, said a source close to the investigation.
On the day of Tiffany's killing, Charlotte-Mecklenburg police jailed Mitchell for statutory rape and indecent liberties with a child, naming Tiffany as the victim.
Police defend their work, saying they followed the industry's best practices - which takes time. Police didn't feel a need to rush, they say, because they believed Tiffany was secure, hidden in a foster home with no threat to her safety.
Police say it's hard to prove statutory rape: Of the 262 reports of statutory rape police received over three years, only 16 percent - 42 cases - were accepted by prosecutors.
Experts say statutory rape cases are complicated because they involve victims ages 13, 14 or 15 who often consider themselves voluntary participants in sex with someone at least six years older. So victims can be reluctant to help police.
But child advocates say in cases like Tiffany's, police should act more aggressively. An immediate arrest sends a signal to a suspect and can persuade them to stay away from victims.
"The cases may be difficult to win, but they're not difficult to charge," says Brett Loftis of Charlotte's Council for Children's Rights.
UNCC criminologist Paul Friday says: "Often, nothing is done in these kinds of cases because they're based on improper assumptions about the rationality of someone that age. But the minors are often unaware of disease, birth control and they can be exploited by someone."
Adopted by foster mother
Tiffany first entered the child welfare system as a toddler in Buffalo, N.Y., when her mother lost custody.
She was adopted at 4 by her foster mother, Alma Wright, an older woman with eight grown children, who was excited about raising another child.
One of Wright's grown sons was Royce Mitchell, a star quarterback in high school who'd gone on to play for a semi-pro team in Buffalo. But Mitchell also was indicted in 1999 as part of a drug trafficking ring and went to federal prison.
While he was in prison, authorities also charged Mitchell with an earlier murder, but a jury found him not guilty.
In 2004, Alma and Tiffany left Buffalo for North Carolina, settling near Kings Mountain. Tiffany made friends easily at school and church. She ran track at Bessemer City High School.
In 2007, Mitchell was released from prison and followed his mother to North Carolina.
But last fall, Alma Wright got sick. Friends at church helped out with Tiffany, inviting her for dinners and weekends. Tiffany spent time with Mitchell and his wife, too.
Alma Wright died Jan. 25, and Tiffany moved in with the Mitchells in Charlotte.
On Jan. 30, Royce Mitchell asked a Mecklenburg court to appoint him and his wife as Tiffany's guardians.
On his application, he wrote: "We are seeking guardianship because we were requested to do so by Mrs. Alma Wright before she died."
He wanted to transfer Tiffany to West Mecklenburg High School.
The court set a hearing for Feb. 5 and appointed a child advocate to study the situation and look after Tiffany's best interests in court.
There's no transcript of what happened in court, and the clerk who handled Tiffany's case declined to discuss his decision.
Frederick Benson, a Mecklenburg assistant clerk of superior court, appointed Mitchell the temporary guardian of Tiffany's welfare.
It's unclear if Benson, a lawyer, knew about Mitchell's criminal background. Court clerks are not required to perform background checks in guardianship cases, says Clerk of Superior Court Martha Curran. It's up to each clerk to decide what checks are necessary, and they often rely on court-appointed child advocates to advise them in such cases.
Tiffany's advocate, lawyer Martha Efird, declined to discuss her actions in the case.
It was in the weeks surrounding the Feb. 5 court hearing that Tiffany got pregnant, if hospital estimates are accurate.
But friends say Tiffany, who started at West Mecklenburg High in February, wouldn't realize for four or five months that she was pregnant.
On Feb. 27, clerk of court Benson ordered DSS to conduct a "home study" of the Mitchell household. Officials won't release their findings.
But Mitchell didn't keep custody long, according to several of Tiffany's friends in King's Mountain.
In late March, Mitchell left Tiffany at a group home called With Friends in Gastonia, according to Marlene Jefferies and Cruceta Jeffeirs, two adult family friends who watched Tiffany grow up.
The group home wouldn't confirm that. But the friends say the home reported to social services that Tiffany was abandoned. And she was soon back in foster care.
On March 31, Jeffeirs, a Shelby pastor, wrote a letter to Benson seeking custody of Tiffany: "My desire is to see Tiffany accomplish all the goals that she has set for herself and I believe she can do that in a stable environment with lots of guidance and love."
DSS officials in Gaston and Mecklenburg won't discuss Tiffany's case or answer questions about what steps they took to protect her.
But friends and family say Tiffany was eventually placed in the care of foster parent Susan Barber, in a townhome off Mallard Creek Road in Derita.
By July, it was clear Tiffany was pregnant, friends say.
Barber tried to shield Tiffany from talking to those she believed might be bad influences, according to Tiffany's cousin Brittany Page. But a source close to the investigation said Tiffany and Mitchell continued communicating.
Despite repeated attempts, Barber could not be reached.
As the school year approached, Tiffany prepared to change schools again, this time to Hawthorne High in Charlotte, which offers a special program for pregnant students.
Delayed Investigation
On July 27, social workers reported to police that Royce Mitchell might have committed statutory rape with Tiffany.
It took eight days for a detective to look at the case, and three days more for it to be officially assigned to Teresa Johnson, a detective with CMPD's youth crime and domestic violence unit.
Another 12 days passed before Johnson interviewed Tiffany.
It's unclear when detective Johnson discovered Mitchell's background, but it wasn't enough to ramp up the investigation. Investigators say they believed Tiffany was safe in a foster home and faced no threats from Mitchell.
Police say their performance in the case followed procedure and met standards.
Police interview alleged victims immediately if the crime has occurred within the previous 72 hours, so they can gather evidence that may remain. But in cases like Tiffany's - where months had elapsed since the alleged offense - police try to arrange just one interview when children and teen victims of abuse are involved.
Police acknowledge that strategy takes time but minimizes trauma and reduces the chances that young victims might be led into inaccurate testimony by repeated questioning.
Police also let such victims decide when they want to be interviewed at the county's child-victim center called Pat's Place. There, specially trained interviewers talk to victims, while social workers, psychologists, police and others watch from another room.
Tiffany chose an Aug. 19 interview. She didn't say much during the formal interview. But later that day, Johnson won her trust and obtained enough information to move forward with the investigation.
No response from Royce Mitchell
The next day, Aug. 20, the detective made her first call to Mitchell to ask him about the charge, she says. Johnson left a message and gave him a few days to call back.
When Mitchell didn't respond, she made calls over the next two weeks to social workers and a federal probation officer to ask Mitchell to come talk to police.
Police say they didn't immediately arrest him because they believed they could get better information if he talked voluntarily.
On Sept. 9, a federal probation official told Johnson that Mitchell was not coming in.
On Sept. 10, a team of social workers, police and other agencies held a standard follow-up meeting to discuss how to proceed in Tiffany's case.
On Friday, Sept. 11, detective Johnson phoned Mitchell's wife and left a message. She asked her to call back to discuss Tiffany, Johnson says, but didn't give details of the rape allegation.
That Monday, Tiffany was shot and killed.
As emergency vehicles rolled to the scene, Tiffany's school bus was diverted from its normal route. But the students could see flashing lights. Tiffany's friends on the bus, Cimone Black and Tamia Corpening, began to worry.
"I kept texting her phone...," Cimone said. Then she started calling, but all she got was voice mail.
The bus continued on to Hawthorne. For Tamia, the hourlong ride was excruciating.
Nobody said a word.
Mike Easley's Troubles Threaten Former Governor's Place in N.C. History
North Carolina Gov. Mike Easley preferred sending an e-mail to getting on the phone, meeting in small groups instead of giving speeches, and spending a quiet weekend at home rather than traveling the Democratic Party's rubber-chicken circuit.
"I like to get to work and solve problems," Easley said in a 2005 interview before his second inauguration, adding that for all the pomp, "I don't like it as it applies to me personally."
While the former governor has a jocular side, Easley's reticent, all-business persona stands in contrast to the swirl of allegations surrounding him and former first lady Mary Easley.
Authorities want to know more about free flights on privately owned aircraft and loaner cars from dealerships, a land purchase in a gated coastal community and how Mary Easley got her job at N.C. State University in 2005 that now pays her $170,000 a year.
So far, Easley has released a one-sentence statement defending himself and has not responded to several requests for interviews from The Associated Press. And Mary Easley stood silent next to a podium at a news conference late last week, something her lawyer said was prudent as he explained she had no plans to resign.
"It is my considered judgment that this is the best course of action," Mary Easley's attorney, Marvin Schiller, told reporters.
The Easleys haven't been charged with any crimes and it may be months or longer before it's determined whether the Easleys did anything unethical or illegal. What is clear is that scrutiny of the largely silent couple threatens to damage the public's view of Mike Easley's accomplishments as governor and attorney general.
"It's difficult to see how (his) legacy won't be tarnished," said David McLennan, a political science professor at Peace College in Raleigh. "The difficulty with the lack of transparency is it creates the perception that they're hiding something."
A federal grand jury received testimony last week from a Highway Patrol trooper who was the supervisor of Easley's former security detail. The FBI subpoenaed travel records about privately owned aircraft on which the Easleys and their son rode, and asked for Mary Easley's personnel records at N.C. State.
The State Board of Elections is investigating if the airplane travel violated campaign finance laws and why Easley's campaign failed to put its use of a sport utility vehicle from an eastern North Carolina dealership on campaign reports years ago.
Some political observers say it's too early to make assumptions.
"You've got to try to back away, and say, 'All right, what happened here?"' said Gary Pearce, a longtime Democratic consultant whose former clients include former Gov. Jim Hunt and then-U.S. Sen. John Edwards. "And we're not going to know that for some time."
While the legal machinations are complicated, the alleged preferential treatment of the Easleys is simple for the public to grasp, said Carmine Scavo, a political science professor at East Carolina University.
"There's his wife's job. Everybody understands that. And there's flying on planes," Scavo said. "In office, he pretty much had a squeaky-clean reputation, and now a lot of people are re-examining that."
Easley's behind-the-scenes governing style during his eight years as governor largely served him well.
He won praise for legislative victories that expanded his nationally recognized public school reforms such as free preschool for at-risk 4-year-olds and two-year college degrees for teenagers before they leave high school. He also helped pass a state lottery with profits going to education.
"It's important for the current chroniclers of the day, including the media, that they will provide a fair and balanced view of his record," said Eddie Davis, former president of the North Carolina Association of Educators, the state's top teacher lobbying group.
But Easley also took heat during his final year in office. He defended his wife's expensive taxpayer-funded trips to Europe, got sued over destroyed e-mails in his office and was criticized for failing to fix a tattered mental health treatment system.
"He was in a hole and kept trying to work his way out of it," said Andy Dedmon of Cleveland County, who was House majority whip during Easley's first two years as governor.
Republicans have jumped on the allegations, demanding independent investigations and that Mary Easley resign.
Few Democrats have come to the Easleys' defense. Current Gov. Beverly Perdue, who as lieutenant governor didn't have a close relationship with Easley, and many legislators are taking a wait-and-see attitude.
"We've heard a whole lot of suppositions and what-ifs and what-abouts," said Senate Majority Leader Tony Rand, D-Cumberland, Easley's closest ally in the Legislature. "I would hope that people would withhold their judgment on all of this until we know something about this."
Former N.C. State Fundraiser Talks to Federal Agents About Mary Easley
A former North Carolina State University fundraiser has talked to federal agents and a university official says information about her work was subpoenaed by a federal grand jury.
An attorney for Wendy Brown said she talked with authorities for several hours Wednesday, The News & Observer of Raleigh reported. She sued the university after she was dismissed in March.
N.C. State Chancellor James Woodward said the university has received a subpoena for documents about Brown's work.
Federal prosecutors have issued subpoenas seeking information about former first lady Mary Easley's job at the school as well as family travel and a marina renovation when former Gov. Mike Easley was in office.
Attorney Philip Isley said Brown "was cooperating with a request to discuss her job duties at N.C. State."
Records showed that Brown raised about $1.5 million for the university and was paid about $58,000 a year.
The Easleys have said through a spokesman Mary Easley's fundraising efforts were appropriate. Mary Easley oversaw a lecture series and was developing a public safety center, were appropriate.
The university terminated Mary Easley's $170,000-a-year contract last month. Her attorney said she would use the university's appeal process to challenge the action.
N.C. State's chancellor, top academic officer and board chairman have resigned over their involvement in Mary Easley's hiring. The former chancellor, James Oblinger, testified last month to a federal grand jury about her position.
North Carolina Slashes Medical Assistance Funding For State's Poorest Citizens
Legislative leaders who monitor North Carolina’s mental health system are surprisingly positive after negative actions they took last month to close a budget hole.
They’re pleased with new Department of Health and Human Services leaders who oversee treatment for more than 300,000 mentally ill patients, substance abusers and the developmentally disabled.
However, spending cuts for treatment reaching as high as $400 million this fiscal year mean there’s no doubt patients will lose local treatment options and see other services curbed.
“I’d be optimistic if we didn’t cut the budget 20 percent,” said Dave Richard, executive director of the Arc of North Carolina, which advocates for the mentally disabled. “You can’t do what they’re doing without hurting thousands upon thousands of people in the state.”
The cuts had to be deep, according to Democrats who calculated the budget gap for this year at more than $4 billion. But improved cooperation with the department helped prevent patient cuts from getting worse, said Sen. Martin Nesbitt, D-Buncombe.
“We now have people we can work with,” said Nesbitt, co-chairman of the Legislature’s mental health oversight committee. “This (reduction) is what we had to do to preserve the system.”
The good feelings contrast with eight years of frustrations and setbacks for a mental health reform effort that a legislative watchdog agency said in July ultimately wasted up to $635 million in government money on one initiative alone.
The positive vibes are traced to Secretary Lanier Cansler, who was hardly a newcomer when Gov. Beverly Perdue appointed him in January. The former House member, from Buncombe County like Nesbitt, was deputy secretary during then-Gov. Mike Easley’s first term before a brief consulting career.
Under Easley, the department struggled to carry out a 2001 law designed to shift the state’s mental health programs away from institutional care to community-based treatment offered by private providers.
Lawmakers and advocates clashed with the department under then-Secretary Carmen Hooker Odom because they said she didn’t seek their input enough. But advocates say Cansler wasn’t part of the problem.
Relations improved in late 2007 when Dempsey Benton, a career bureaucrat in state and municipal government, succeeded Hooker Odom and pledged to fix the department. But his time was short and marked by the fallout from hospital patient deaths and hemorrhaging cash with the Community Support program.
Cansler, a Republican in a Democratic administration, seemed to have bipartisan support on the oversight committee last week. Nesbitt said he had never seen committee members listen so intently to a department secretary.
“I think we’ve got somebody that’s very capable,” said Rep. Fred Steen, R-Rowan, a committee member who acknowledged the panel has been accused at times of micromanaging.
Cansler acknowledged current cuts, among them $55 million less to “local management entities” that evaluate patients and find them community treatment, a $16 million reduction for in-home services and lower Medicaid reimbursement rates for providers, will hurt families and those that treat patients but his agency is working to minimize the harm.
“There will be some Providers out there that will not survive,” Cansler said. “There are going to be repercussions and there’s no way to avoid it when you take $350, $400 million out of the system.”
Cansler talked about a new effort to provide more financial accountability within the department and get divisions to work together to meet common goals.
He’s also hired outside the department, a Tennessee behavioral health consulting firm director, a Lumberton hospital executive and Sandhills-area local treatment manager among them, to take key mental health positions.
“Sometimes when you have a new set of eyes with a different background, different understanding, you see issues that those who have been within the forest for many years don’t see,” Cansler said during a break in last week’s meeting.
The good relations were tested in last week’s oversight meeting, the first since the session ended.
Legislators complained how Cansler’s department allocated $55 million in cuts to the 24 local management entities.
They spent most of the afternoon peppering new state Medicaid director Dr. Craigan Gray over the phaseout of the Community Support program, which provides non-medical care for 33,000 mental health patients living at home.
The Legislature agreed to eliminate the program by next June after a series of unflattering reviews that found overpriced care — such as paying $61 per hour to take clients to the movies or shopping.
But lawmakers were worried that patient transition to other treatment programs left out more fundamental assistance like teaching patients life skills.
By meeting’s end, Cansler said the department would provide more data to legislators to help them decide if they believed lower-skilled treatments needed to be restored, according to Nesbitt.
Nesbitt quipped: “Isn’t that refreshing?”
Mackey Facing Disciplinary Complaint from Bar
"North Carolina state Rep. Nick Mackey wants dismissed a State Bar complaint alleging he failed to file timely tax returns and failed to disclose his internal affairs problems while a police officer.
The Bar released Monday Mackey’s response to a disciplinary complaint filed in July against the Mecklenburg County Democrat. A hearing is set for December." WCNC
Thomas Wright headed to prison for Fraud
A Superior Court judge today sentenced former Rep. Thomas Wright to 70 to 95 months in prison after his conviction on three felony counts of fraud.
Wright, who was immediately taken away, was kicked out of the state House last month because of allegations that he used his political sway to obtain a bogus letter from a state official to get a $150,000 bank loan. The loan was for his charitable foundation to build a museum commemorating Wilmington's 1898 race rights.
Wake prosecutors also accused him of pocketing three charitable contributions, totaling $8,900.
Jurors convicted him of fraudulently taking the loan and $7,400 in charitable conditions. They acquitted him of one fraud count.
Before the sentencing, Wright's attorney, Doug Harris, blamed the verdict on the publicity surrounding the case.
"They were prejudiced coming in," Harris said about the jurors.
Harris gave notice that he would appeal Wright's conviction and predicted that the jury's decision would be overturned.
Wright testified last week in the criminal trial, telling jurors that he didn't do anything illegal and suggesting he had been targeted because of political ill will.
Wright was sentenced by Judge Henry Hight, who presided over the trial.
In a statement this afternoon, House Speaker Joe Hackney said Wright had been "a champion for people who often couldn't help themselves, but that doesn't excuse him from having to follow the law."
"I regret that his legislative career ended this way," Hackney said, "but I look forward to moving ahead in our chamber and making sure the people of District 18 get the representation they deserve."
Jim Black Sentenced to 63 Months in Prison
Former NC House Speaker Jim Black was sentenced Wednesday to 63 months in prison on a federal corruption charge.
U.S. District Judge Terrence Boyle also ordered the 72-year-old Mecklenburg County Democrat to pay a $50,000 fine and placed him on probation for three years. Black must report to prison by July 30.
Black pleaded guilty in February to accepting more than $25,000 in illegal contributions from chiropractors -- prosecutors said the payoffs were made in restaurant bathrooms -- in exchange for supporting legislation favorable to the industry.
"Today is the end of the line for Jim Black and his corruption," U.S. Attorney George Holding said at a news conference after the sentence was handed down. "He earned every day of (the sentence)...Jim Black took corruption to a new level in North Carolina."
Black declined to comment as he left the courthouse amid a swarm of reporters and photographers.
Longtime Black critic Joe Sinsheimer said he felt the sentence fit the crime.
"I think its clear the speaker sold his office," said Sinsheimer, who filed campaign-finance complaints against Black with the State Board of Elections. "A 63-month sentence for a 72-year-old man is a heavy term, and I think it will send a powerful message."
But Park Helms, a former state lawmaker and a friend of Black's, said the prison term is too harsh.
"He was tenacious, and it was perhaps that tenaciousness that go him into trouble because he did not allow defeat to set him back," Helms said. "The Jim Black I know will not let this defeat him. He's made serious mistakes."
Black held power in the state House for a record eight years before mounting criticism and dual state and federal investigations brought him down. Before his sentencing, he apologized to family, friends and colleagues for what he called "stupid mistakes."
The Federal courtroom in Raleigh was packed with onlookers, including former state Rep. Michael Decker.
Decker helped topple Black by telling federal investigators that he had been paid $50,000 in January 2003 to switch from the Republican to the Democratic party to help Black retain a share of the speaker's position.
Decker pleaded guilty last August to accepting a bribe and has been sentenced to four years in prison.
"I hate to see him have to serve that kind of time, but of course, the opposite side of that coin is when we do things that are against the law, we have to face up to that," he said.
In addition to Decker, other Black colleagues were also brought down in the swirl of investigations that eventually caught the former speaker.
* Former lottery commissioner Kevin Geddings, who was appointed by Black, is serving four years in federal prison for trying to hide his financial ties to a lottery company.
* Political ally Scott Edwards, the director of the state Optometric Society political action committee, pleaded guilty to obstruction of justice.
* Meredith Norris, Black's former political director, was found guilty of violating state lobbying laws last year.
Defense attorney Ken Bell argued that a prison term for Black wouldn't serve justice, calling it a "waste of his talents." He asked Boyle to allow the optometrist to to serve his sentence on house arrest and perform community service by providing free vision exams to needy children.
But prosecutors said Black deserved a stiff sentence for abusing his position and for not helping investigators ferret out other cases of public corruption. Prosecutors also alleged the money from the chiropractors was just the tip of the iceberg of Black's illegal money trail, noting he accepted a $500,000 payment from an unidentified lobbyist in 2000.
Boyle heard from no witnesses and declined to lecture Black from the bench. But he determined the payments from chiropractors amounted to bribes, which increased the federal sentencing guidelines from earlier estimates of three years in prison.
Holding said he hopes the sentence serves as a deterrent to other public corruption, noting such crimes harm democracy.
"This Corruption (was) so severe, so egregious that people not only lose faith in politicians, but lose faith in democracy itself," he said. "Why should an average, everyday citizen engage in the democratic process when a politician like Jim Black sneaks off to the bathroom and sells his office for cash?"
Black still must be sentenced on state bribery and obstruction of justice charges.
State leaders reacted with regret when they learned of Black's sentence. But they said there was no excuse for his crimes.
"I think the whole episode is unfortunate and sad, and it is a shame his career ended that way. It is a shame for North Carolina and it is just a sad day," Gov. Mike Easley said in a statement. "I am glad that we have got it behind us now and we can concentrate on the budget now so we can keep moving North Carolina forward."
House Speaker Joe Hackney, the Orange County Democrat who succeeded Black as the top lawmaker in the state House, said new regulations governing lobbying and financial reporting by legislators should correct the problems Black's dealings exposed.
“Jim Black was a valuable servant to this state for many years, but the sort of crimes he has admitted to can never be excused for a public official," Hackney said in a statement. "This prison sentence sends a strong message to all of us that neither the public nor the courts will tolerate dishonesty by their elected representatives.
"We have already put measures in place to restore confidence in our House of Representatives. I hope we are on our way to regaining the public’s trust.”
FBI Agent: Meg Scott Phipps Personally Received Illegal Payments
A hearing in Wake County Superior Court Tuesday adds a new twist to the investigation into Meg Scott Phipps' campaign finances.
FBI agent Andy Thomure told of two times in 2000 that Skyride operator Jimmie Drew handed over illegal payments directly to Phipps.
Thomure's testimony contradicts Phipps' past claims she never handled campaign cash. Last year, Linda Saunders, Phipps' former assistant, told members of the State Board of Elections in a hearing that Phipps did not handle money.
"Meg does not do money. I mean she does not keep up with the finances at home. She doesn't keep up with them in the campaign," she said.
Saunders has since pleaded guilty to conspiracy, fraud and extortion, along with Bobby McLamb. Phipps has already been indicted by the Wake County grand jury for lying and trying to cover up illegal loans and contributions.
Drew pleaded guilty Tuesday to a misdemeanor count of obstruction of justice. He said in court that he misled authorities about the scandal involving Phipps.
"Mr. Drew terribly regretted that he had not been fully forthcoming with his involvement," said Dan Boyce, Drew's attorney.
Drew admitted he made two illegal cash payments directly to Phipps, which never showed up in campaign finance reports. He said he plans to fully cooperate with state and federal authorities.
"The investigation is ongoing. There may be additional charges against other people," Wake County District Attorney Colon Willoughby said.
Officials said Drew made a third payment of $5,000 to the campaign in 2001. Shortly after, he received lucrative contracts to operate cable lift rides at the state fairs in Raleigh and Asheville. Those contracts have since been voided by the state.
State officials said they are not going to have a Skyride operator for this year's state fair.
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Sources: Washington Post, McClatchy Newspapers, Under The Dome, Charlotte Observer, WCNC, StopDSSCorruption, Chicago Tribune, FBI, WIVB, The Paper Trail, WRAL, NCGOP, The Daily Southerner, Youtube, Google Maps
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