Obama Ignores North Carolina's Extreme Corruption For Votes (Health Care, 2012)

Pres. Obama is intentionally ignoring North Carolina Democrats' extreme Corruption and using Partisan politics in exchange for votes (Kay Hagan's Health Care Vote & 2012)?

It sure seems that way.

Jim Black, John Edwards, Harry Jones, Anthony Foxx, Jennifer Roberts, Park Helms, Peter Gorman, Tony Rand, Mike Easley & Gov. Bev Perdue.

I've listed the names of 10 Influential North Carolina citizens (all Democrats) whose questionable (Political Corruption) are being totally ignored by the Federal Gov't under Obama's administration.

What questionable, political corrupt actions am I referring to?


Here's 50 examples of what's really going on in North Carolina:

(Its quite possible Obama's Administration has ordered the Mainstream Media NOT to report this stuff probably as a result of some type of deal he made with either Gov. Bev Perdue or Senator Kay Hagan.)


1) Early releases from Federal Prison (Jim Black not African-American Inmates),

2) Crooked Campaign Finance deals, possible stolen Elections (ACORN helped NC in 2008), Unnecessary Gerrymandered Districts (12th), pushing or forcing Straight Ticket Voting from Minority Low Income citizens who are treated the worse in North Carolina (Democrats),

3) Not spending NC Education Lottery money on Education,

4) Extreme Racial Discrimination within the NC Job Market, Criminal Justice System and Education System,

5) Very Strong Allegations of Insider Trading by NC Senators,

6) Crooked Health Care deals with NC Blue Cross Blue Shield (BCBS raised its rates again this year),

7) Not reporting Campaign Flights to the State Board of Elections,

8) NC Politicians involved in Serious Conflict of Interest as it relates to Employment and Lobbying,

9) No-Bid Medicaid Contracts to Corrupt companies whose products may cause Deaths for Low Income, Senior Citizen Diabetes patients,

10) Spending Federal Stimulus Money on Political Favor projects (Cocaine research on Monkeys) instead of Real Jobs,

11) Re-Segregating Public Schools (Civil Rights Violation),

12) Huge Achievement Gaps & Disparities in Education between White and Minority Students (Civil Rights Violations),

13) Using Black Foster Care children to secure more Federal Revenue but not using the funding on those children,

14) DSS Funding Embezzlement by NC DSS employees (more than $100,000.),

15) Food Stamp Fraud by Charlotte DSS employees,

16) ABC Board bribes,

17) Serious Alcohol Law Violations,

18) Serious Misuse of Authority,

19) Illegally Firing Qualified, High Performing Teachers from Low Income Schools to save jobs for Teachers in Wealthy White Schools,

20) Medicaid Fraud by State Officials ($300 Million intentional Overbilling from NC Doctors & Hospitals),

21) DMV employees conducting Illegal Wiretapping and selling Driver Licenses,

22) Appointing Federal Judgeships in exchange for other favors,

23) Sheriff Deputies scrubbing Criminal Records for Sexual Favors,

24) Continuing to hire outside Contractors (Chicago based)even after Gov. Perdue promised to give NC Contractors first priority,

25) Creating Jobs for Politicians' spouses during Hiring Freezes after the vacancy is advertised for just one day,

26) Only collecting Taxes from the Middle Class & Low Income citizens, while allowing North Carolina's Wealthy White citizens and Businesses to forgo paying their taxes,

27) Only raising property taxes in NC Communities heavily populated by Black and Hispanic citizens,

28) Allowing Violent Federal Ex-Convicts on Probation to adopt Black Foster Care Children,

29) Trying to cover up deaths of Black Foster Care Children in order to save jobs of Black NC DSS Fraternity/ Sorority friends of NC Politicians,

30) Firing White DSS Social Workers to save jobs of Black Social Workers who are friends of NC Politicians, (Reverse Discrimination is still illegal)

31) Not awarding NC State Contracts to Minorities,

32) Continuing to award State Contracts to Contractors with records of Shoddy Products, Terrible Service and many Consumer complaints,

33) Luring Companies to North Carolina by promising them they can pay employees very low salaries and don't have to pay Taxes,

34) Cooking the numbers of North Carolina's Public School Drop Out rates especially among Minority Students who are currently receiving an Inferior Education,

35) Securing millions in Federal money for Homelessness Prevention but using it for other purposes and letting Homeless citizens freeze to death on the streets,

36) North Carolina Law Enforcement Officials refusing to provide the same protection for Minority citizens (Greensboro, N.C. A & T Students) as they do for White citizens and not sending out Amber Alerts for missing Black Children right away versus immediate responses for missing White Children,

37) Refusing to collect Child Support for Black Children (Charlotte) while doing so wonderfully for White Children,

38) Using Credit History as an excuse NOT to hire Black Job Applicants but doing the exact opposite for White Job Applicants,

39) Allowing serious Housing Discrimination to take place and dismissing numerous Complaints about Violations from Minority citizens on this issue,

40) Allowing Developers to build Shoddy homes for Minority citizens & Minority Homebuyers (Charlotte),

41) Intentionally sending raggedy City Buses into Minority communities but sending out nice, well-maintained buses to White communities while ALL riders pay the same fares (Charlotte). In Black communities the buses are often late or fail to even arrive thus hindering many Low Income people from getting to work on time.

Also securing Federal DOT & Mass Public Transportation Funding but only investing it in North Carolina's Wealthy White or Pre-Dominantly White communities,

42) Allowing North Carolina City Councils to make risky investments in the Stock Market using Taxpayer money,

43) Using Federal Neighborhood Revitalization Funds only in NC's White Communities and intentionally leaving Black Communities out of City Planning (except for West Charlotte where many Low Income Straight Ticket Voters live),

44) Giving Black Youth Life Sentences for committing Non-Homicidal, Non-Drug Related offenses while giving White Offenders much less jail sentences for committing worse crimes,

45) North Carolina Media organizations refusing to publish and report FACTS instead citizens keep getting Partisan Propaganda from the state's Corrupt Democrat party,

46) North Carolina Media organizations refusing to publish and report FACTS instead citizens keep getting Partisan Propaganda from the state's Corrupt Democrat party,

47) Allowing Bank of America to Foreclose on thousands of homes owned by Minority citizens. How? BOFA officials intentionally ignore or lose Loan Modification Applications,

48) Giving North Carolina's Black Colleges much less money than pre-dominantly White student populated Colleges & providing Financial Aid to fewer Black College Students than White College Students,

49) Refusing to provide Mental Health Counseling for Low Income Minority citizens. I'm NOT speaking of locking up people. Instead I'm referring to providing Mental Health Counseling to stop Child Abuse, Drug addictions, Alcoholism, etc.,

In North Carolina White citizens often receive State-Funded Mental Health Counseling, while Black citizens are sentenced to Prison.

50) Encouraging Low Income Women to have Abortions or to have more babies out of wedlock, in order to help secure more Federal Funding from the U.S. Dept of HHS.

etc.,

As you can see North Carolina Politicians within the Democrat Party can do whatever they please without any real consequences, unless your Black.

For Black North Carolina Democrats they may get a pass, they might not.

It depends upon how low their willing to go as it relates to selling out the North Carolina Black Community to help White constituents.


I'll ask again, is Pres. Barack Obama intentionally ignoring North Carolina Corruption in hopes of gaining an endorsement for his 2012 re-election bid and in exchange for Senator Kay Hagan's Health Care Vote?

Since Democrats reign in North Carolina politics, I'm speaking of Political and Public Corruption from Democrat Politicians.

I find it strange the Federal Gov't is suddenly no longer getting involved while all of this obvious Corruption is being committed by NC Politicians and State Officials (all Democrats).

Under President Bush's Administration NC Corruption was being cleaned up, however strangely since Pres. Obama has been in Office, the FBI Investigations have slowed considerably and NO one else is being prosecuted regardless of what they do (except Low Income Black citizens).

Perhaps its because he has cut a deal with North Carolina Governor Bev Perdue to look the other way if she and other Influential Dems will endorse his next campaign.

Maybe this explains why so many North Carolina Democrat and Independent Voters will be voting for Republicans come November 2010 and in 2012.


Check out the videos and article below to learn just how Corrupt North Carolina has become under Democrat Leadership.















Media Worried Corruption In North Carolina Might Cost Democrats Votes


"Never before have you seen an allegation of corruption going that close to the governor's office in modern history."

So said a Democratic consultant in North Carolina reacting to the latest casualty in the ongoing investigation of former governor Mike Easley.

The scandal has brought down Easley's wife, bankrupted his coffers, disgraced a state university, and now, most recently, set federal charges of extortion against Easley's own closest assistant - with more and more signs pointing back to Easley's doorstep.

How did the national media react to the latest turn? By burying the details and then complaining about citizens who might vote Republican as a result of the scandal.

To see the full scope of corruption afoot, behold this disturbing account from CBS's Raleigh affiliate last Friday:

The laundry list of charges facing a top aide to former Gov. Mike Easley could mean that federal investigators are mounting a serious case against Easley, a former federal prosecutor and a former FBI agent said Friday.

A grand jury on Thursday indicted Ruffin Poole, who was Easley's top aide and legal counsel during the governor's two terms in office, on 51 counts of extortion, bribery, racketeering, mail fraud and money laundering.

Easley isn't named in the indictment, but observers said the level of detail in the 64-page indictment show that investigators have interviewed witnesses extensively and might have made deals with some as they continue to work on the case.

"The U.S. Attorney's Office came down with a sledgehammer here," said Dan Boyce, a Raleigh lawyer who spent seven years as a federal prosecutor.

The indictment noted that Poole became known among Easley's top contributors as "Little Governor" because he was the person tasked with resolving any problems donors faced with state regulators and with lining up appointments for them to serve on state boards and commissions.

Sounds pretty bad - unless you're the Washington Post. That news outlet chose to cover the indictment in quite a different tone:

"Never before have you seen an allegation of corruption going that close to the governor's office in modern history," Crone said.

In previous election years, the corruption associated with Black and Wright didn't bleed over into other legislative districts by hurting the prospects of other Democratic incumbents just by association. It shouldn't happen this year, either, Hackney said.

"I don't see how Ruffin Poole's indictment affects somebody running for a House seat in eastern North Carolina if there's no direct connection," said Gary Pearce, a Democratic strategists who used to work with former four-term Gov. Jim Hunt.

Hackney and other Democrats are hopeful the economy will turn around by the November elections so they'll have some more positive things to talk about with voters.

So you see, even though federal agents exposed systematic corruption all over the state, Easley and Poole don't reflect anything bad about the Democratic party, and shouldn't be lumped in with other Democrats.

Except for the fact that before this all came out, Easley was a powerful Democrat who was known for his influence as a superdelegate.

Back in 2008 when Barack Obama had grand ambitions of winning key states in the Bible belt, Easley was almost a rock star.

In May of that year, the NY Times used its blog to ooze about his "powerful endorsement" in the primary. US News called him a "coveted" recruit. Over at Politico, Ben Smith gushed that Easley was a "meaningful ally" with "a popular name and a symbolic validation."

Easley spent all of 2008 hobnobbing with DNC brass, even traveling to Chicago for a meeting with Obama. Democrats treated him like royalty, and the mainstream media couldn't get enough of him.

Of course, if Easley had been governor of a state no one cared about, the Democrats might have been more pro-active about shunning him. Even before North Carolina held its primary, signs of corruption had begun to trickle out:

Several media organizations sued Gov. Mike Easley on Monday, claiming his administration has routinely flouted the state's public records law by deleting official e-mails.

The suit seeks a court order preventing state employees from deleting government e-mails and requiring officials to ensure that people in their departments comply with the state public records law.

The e-mail debate has raged in the weeks since a fired Department of Health and Human Services spokeswoman said Easley's administration had an unwritten policy to delete e-mails daily.

Easley was already viewed with suspicion for his botched handling of the Mike Nifong Duke lacrosse fiasco. As the email story broke, voters inside the state became increasingly disconnected from the fawning adoration in the national media.

The email fiasco was the beginning of a massive unraveling. As more revelations appeared, Democrats reacted...by not doing anything. Easley kept his seat as a superdelegate, and party loyalists in NC defended him to the end.

In May 2009, federal agents arrived to address the growing accusations. The Associated Press covered it with a bland report that mentioned his party affiliation at the very end:

The state Board of Elections is investigating at least 25 trips that Easley took on private jets after The News & Observer of Raleigh reported that he didn't pay for some flights.

The Democrat stepped down earlier this year because term limits prevented him from running again. He is now a partner at a law firm.

Easley did not immediately return a telephone message.

That was it. A year after being the center of attention, Easley's status as a Democrat was suddenly a footnote, a detail that wasn't important to the story.

By June, Easley's wife Mary was removed from a cushy job at NC State University, along with three prominent leaders of the school who resigned, under exploding suspicion the job had been a campaign gift.

The Associated Press covered the story by promoting school officials who called it a "distraction." The piece managed to talk about the Easley couple - and longtime Democrat Erskine Bowles who runs the UNC system - without a single mention of the word "Democrat" anywhere.

Just a few months later in October, Easley was fined by the Board of Elections in an official tribunal. Apparently those "distractions" had been illegal. The Greensboro News and Record reported that the Democratic party was also held responsible:

Already, federal prosecutors have used a grand jury to probe Easley's dealings while in office. Judging by subpoenas and witnesses connected to those hearings, the probe extends beyond campaign finances.

But the elections board was focused on whether Easley or his campaign intentionally skirted a variety of campaign finance laws. In its ruling on Friday, the board said the state Democratic Party, the Easley campaign committee and Easley himself bear some level of responsibility.

The mainstream media basically ignored this development altogether. This once "powerful" and "popular" trendsetter among Democrats was now just an obscure governor who had nothing to do with national politics.

Three months after the Board of Election tribunal, enter the indictment of Poole. Finally faced with indisputable proof of statewide corruption, the media have no choice but to report the story - not to ask why Democrats keep ending up on trial, but to pout because Republicans are getting an advantage.

The Easley scandal is a prime example of how the media love Democrats who are useful in winning elections, but suddenly disinterested when that same person embarrasses the Democrat party. Mike Easley was a darling, a celebrity, and a mover and shaker, until he became a liability.

Oh, and lest the media try to convince you it ends with Poole, check out this little detail about Beverly Purdue, the current sitting governor of NC:

Since last summer, the campaign has uncovered a total of 31 flights aboard private planes that were previously unreported. The donors who provided 21 of the flights have been reimbursed, while the others were included on amended campaign finance reports as in-kind contributions.

The combined value of the 31 flights was more than $25,400.

State campaign finance laws forbid corporate donations to candidates and limit individual contributions to $4,000 per election cycle.

Campaign treasurer Oscar Harris said that campaign officials have been auditing Perdue's campaign finances after the campaign shifted to a new software program. The officials have come across the previously unreported flights in the process, he said.




Cindy Brady vs. Jennifer Roberts


That is what the county’s DSS investigation has come down to at this point. It is also pretty obvious that Brady and county audit director Cornita Spears were essentially pitted against each other by County Manager Harry Jones. Jones is emerging as a very manipulative figure in this sorry episode.

Brady’s account of the disputed spending was kept from Spears, the very person the county charged with finding out what happened to the money. On top of that, Jones then suspended Spears for not knowing about the $33,000 restitution/repayment that someone still unknown — the only logical candidate is Brady — made to the county.

At this point I believe Jones and probably DSS head Mary Wilson knew full well about the $33K mystery money and threw Spears under a bus to further confuse matters. The important point is that Spears now says that over $100,000 cannot be accounted for from the Giving Tree program. And for her part, Brady credibly alleges that the county never really cared how the money was spent or documented.

Meanwhile, the county continues to hide behind personnel laws in an effort to keep facts away from the public. In fact, I think Jones suspended Spears precisely in an attempt to shroud her audit and the facts around it behind the “personnel matters” dodge.

In any event, the time is long past for Roberts and her fellow commissioners to demand answers from Jones. Not join him in a further whitewashing of this matter. State law gives the commission the power to waive — in order to preserve public confidence in the operation of county government — any confidentiality shields that otherwise might be in place. The time has come for our elected leaders to take that step.

Or we go get new elected leaders next year.



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Sources: Civitas Institute, The State, WRAL, McClatchy Newspapers, Meck Deck Blog, John Locke Foundation, Conservative Blog Watch, Recovery.gov, WCNC, Youtube, Google Maps

2010 Republican Tsunami Possible; Mass Exodus Of Dem Lawmakers

Top Democrats Head For The Exits



The grim outlook for Democrats in the 2010 midterm elections just got a little worse.

Four top Democrats — including veteran Sens. Chris Dodd and Byron Dorgan — all prepared to pull the plug on their campaigns in a 24-hour period that began Tuesday, and in the process, offered an unnerving glimpse at the perilous election year ahead.

With Dorgan’s stunning retirement announcement Tuesday evening, Democrats are now facing their bleakest election outlook in years — and the very real possibility the party will lose its 60-40 Senate super majority after the November elections. On the House side, the prospect of a 20 to 30 seat loss is already looking increasingly likely.

“It’s not good news for Democrats,” said Roy Temple, a Democratic strategist. “The reality is this is going to be a challenging year, and this is an additional challenge you would prefer not to have. Because of the success of the last two cycles, there are a lot of seats to defend. This is just an additional complication.”

Dorgan’s announcement was accompanied Tuesday by Michigan Democratic Lt. Gov. John Cherry’s decision to end his floundering bid for governor, and by the revelation that both Dodd and Colorado Gov. Bill Ritter would announce Wednesday that they would not seek reelection.

There is some silver lining in the Democratic cloud: Ritter, Cherry and Dodd were all struggling to gain traction and their departures could actually increase Democratic chances of holding those offices.

Several top-tier prospects immediately surfaced in Colorado as potential Democratic candidates for governor. In Connecticut, Democrats expect that state Attorney General Richard Blumenthal will run in Dodd’s place, providing them with a stronger nominee than the embattled five-term senator.

But the retirements of two senior Democratic senators, and the suddenly altered landscapes in Michigan and Colorado, continue a wave of Democratic bailouts that began with a burst of retirements by veteran House Democrats representing competitive districts, followed by the stunning late December party switch by freshman Alabama Rep. Parker Griffith.

In the meantime, President Barack Obama’s and the Democratic Party’s poll ratings have slipped across the board, generic polling is now generally more favorable to Republicans and a handful of promising Democratic House candidates have abruptly ended their campaigns.

Suddenly, the sad sack GOP is looking at its best shot in three election cycles of making serious gains in November.

“Sen. Dorgan’s retirement coupled with the recent spate of retirements by House Democrats show the national mood is swinging against them,” said Carl Forti, a GOP strategist. “With Sen. Blanche Lincoln and others in a precarious position, Democrats will have to thread the needle to get back to 60 seats.”

In Dorgan’s case, Republicans now have a very strong chance at picking up his seat in Republican-oriented North Dakota, a state that Obama lost by eight points in 2008 and John Kerry lost by 27 points in 2004.

Visit msnbc.com for breaking news, world news, and news about the economy

Dorgan said his decision had nothing to do with his re-election campaign, where he had yet to face stiff competition — though the popular GOP Gov. John Hoeven might have jumped into the race and forced the senator to wage a fierce campaign. In the wake of Dorgan's announcement, North Dakota GOP Chairman Gary Emineth told POLITICO that he believes Hoeven is likely to run now.

In a memo to staff and later to the press, Dorgan said that he came to his decision over the holiday season and wanted to pursue interests outside politics, including writing two more books, working on energy policy and teaching.

“[M]y decision has no relationship to the prospect of a difficult election contest this year,” Dorgan said. “Frankly, I think if I had decided to run for another term in the Senate I would be reelected.”

Still, his decision forces Democrats to defend yet another open seat in addition to Delaware and Illinois — two states in which Democrats typically run up the score but where the GOP is poised to run competitive candidates this year. And it comes in a year in which Democratic incumbents including Majority Leader Harry Reid, Sen. Arlen Specter, appointed Sen. Michael Bennet and Lincoln are battling weak poll numbers.

“Remember the old Tareyton cigarette slogan? ‘I'd rather fight than switch?’” said Alex Castellanos, who advises the Republican National Committee. “Now that the Democrats are expected to drop under 60, we will probably see other retirements as Democrats decide they would rather retire than fight.”

Despite the souring outlook, Democrats are hopeful about their chances in five of the six states where Senate Republicans have their own retirement-related problems — Ohio, New Hampshire, Missouri, Florida and Kentucky. They envision a scenario in which the economy will yield job growth heading into the midterms, and expect that public perception of the party will brighten if Congress gives final approval to the Democrats’ sweeping health care bill and approves other measures on the ambitious agenda.

Some Democrats give little credence to the retirements, noting that they have no broader meaning other than the fact that individual lawmakers chose not to run for reelection.

“These guys quit sometimes,” said Jim Jordan, a Democratic strategist.

The timing — the first week of the new year — and the locales of the retirements makes them hard to dismiss as isolated incidents, however.

In Colorado, the epicenter of the recent Democratic resurgence in the interior west, it is telling that Ritter, a 53-year-old former Denver prosecutor who cruised to victory in 2006, would unexpectedly pull down the curtain on a promising career and that Bennet, the senator he appointed to a vacant Senate seat, would be in jeopardy of losing it.

In Michigan, a state battered by job losses but still a reliable Democratic bulwark in state and federal races in recent years, the heir apparent to two-term Democratic Gov. Jennifer Granholm is similarly quitting before even starting, unable to raise money or get out from under the shadow of what has become a deeply unpopular administration.

And back in Washington, Democrats were all but blindsided by Dorgan’s decision to retire rather than seek a fourth term in a seat that only he might have been able to hold. Neither the Senate majority leader nor the White House even had a statement prepared.

Compounding the problem for Democrats — and spreading the pain to all three Democratic campaign committees Tuesday — the one Democrat who may be able to hold Dorgan’s seat is Rep. Earl Pomeroy. But if he vacates North Dakota’s at-large seat, that would create another problem: Republicans would be positioned for another House pickup.




Stars Aligning for Republicans in North Carolina Senate



The odds for a Republican take over of the North Carolina State Senate just got a lot better. State Senator R.C. Soles (D-Tabor City), the longest serving in the Senate has announced that he will not seek re-election. It’s not that surprising that he has chosen to retire. Aside from being 75 years old, he has been plagued with two scandals, one that he molested a teen aged boy and he is facing a possible indictment for shooting someone in his home last August.

Republicans need to win six Senate seats to take over the body and Soles is another retirement that may make that possible. The district has been trending towards the GOP and Soles opponent last year, Bettie Fennell, came considerably close to defeating him. Soles’ retirement is in addition to a few other Democrat retirements who also represent Republican friendly districts.

Senator David Hoyle of Gastonia represents a heavily Republican leaning district that the GOP will almost certainly pick up. Senator Julia Boseman of Wilmington who like Soles has been embroiled in personal conflicts has also decided not to run for re-election. Her predecessor was a Republican.

Who controls the state legislature next year will be vital as he who has the power controls the redistricting after the Census is completed.







Tony Rand Stepping Down From NC Senate


NC State Sen. Tony Rand, one of the most powerful political figures in the state, is leaving the Senate.

Rand, a Fayetteville Democrat, will become chairman of the state Parole Board, Mark Johnson reports. He will resign before the end of the year.

“There comes a time when it’s time to go,” Rand said.

The News & Observer

His time to go was several years ago. Tony Rand had his hands directly in steering North Carolina into being the highest taxed state in the southeastern U.S., the beginning of turning the state into a northeastern rust bucket.

There will now be a fight I’m sure among the Senate Democrats to claw their way up to the top and take over as Majority Leader. That should be an interesting sight to behold. What will also be on the radar is how hard the Republicans will fight to try and win this seat when the special election is called. The GOP needs to win six Senate seats if they want to take it over in 2010 before redistricting takes place. I don’t know how heavily Democrat this seat is, but if they can pick it up that will bring them closer to their goal.

There is speculation at Katy’s Conservative Corner as to whether or not Rand’s resignation has anything to do with the recent Easley trials, but according to the N&O he is stepping down to take a position as chairman of the State Parole Board.




Grand Jury Finds Probable Cause To Indict NC Sen. R.C. Soles

R.C. Soles Jr., a N.C. State Senator from Tabor City will be indicted by a grand jury. This was reported in the News and Observer today.

The grand jury wrote in its presentment that it had reason to believe that Soles had committed a crime:

Twelve or more grand jurors concur in finding probable cause to believe that R.C. Soles, Jr. committed the offense of Assault With a Deadly Weapon Inflicting Serious Injury against Thomas Kyle Blackburn in Columbus County on or about August 23, 2009 by unlawfully, willfully and feloniously shooting Thomas Kyle Blackburn and inflicting serious injury.

Looks like we have another Democratic being taken to the woodshed. I wonder if Democrats will call for his resignation like they did the drunk Republican? Will they treat him the same as Rep. Wright?



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Sources: AP, Politico, MSNBC, Carolina Politics Online, McClatchy Newspapers, News & Observer, Star News Online, WWayTV3.com, Youtube, Google Maps

NC Voters Tired Of State's Corrupt Democrat Reign...Decision 2010

Economy, Easley May Haunt Democrats In 2010


North Carolina's awful economy and a new chapter of campaign and ethics investigations made governing difficult for Democrats in 2009.

Those same troubles threaten to shift the state's political landscape away from Democrats if the issues stick around for most of 2010.

State Democrats contend their tough decisions on the budget headed off worse problems, but Republicans believe that and probes of former Gov. Mike Easley and other Democrats give them an opportunity to run the majority party out of power in November.

"The cycle of corruption in this state, in which the Democrats have been largely if not wholly responsible for, and the billion-dollar tax increase in the middle of the recession - those are going to be the two cornerstones of our message in 2010," said state GOP Chairman Tom Fetzer. "I think North Carolinians are ready for a sea change."

But Republicans have had a hard time persuading voters and donors they'd do any better at the helm.

Democrats have held the Executive Mansion since 1993 and have maintained a majority in both legislative chambers for all but four years since the late 1890s. They've also knocked off three GOP incumbents in federal races since 2006, including Sen. Elizabeth Dole. Now they're aiming for GOP Sen. Richard Burr's seat next year.

State Democrats argue tough decisions on taxes and spending stopped the state economy from a free fall while protecting public education and the state's treasured top marks from the nation's bond-rating agencies.

"If we had not raised taxes this year, we would have had a disaster in this state," said new Senate Majority Leader Martin Nesbitt, D-Buncombe.

As for Republicans, he added, "They've got no real record to run on."

How North Carolina perceives Congress and President Barack Obama's handling of the economy - and how quickly any recovery reaches the state - also will play a role in how party candidates perform next year.

"They key is what the state's economy is like come next November," said David McLennan, a Peace College political science professor. "There's a lot that could happen in the meantime."

The state's economy shows no signs of a roaring recovery in 2010, which should mean less revenues for state government and likely more budget cutting for Democratic Gov. Bev Perdue and the Legislature. Lawmakers reconvene in May to adjust the second year of a two-year state spending plan they approved last summer.

Some Democratic budget-writers are worried the current-year budget shortfall could be between $400 million and $800 million, requiring them to make deeper cuts for the budget starting July 1.

Perdue believes the shortfall will be around $400 million, and she's already ordered agencies to withhold money to handle a budget gap. That would mean cuts would be far less than those required after the $3 billion shortfall Perdue faced last year. Perdue and Democratic lawmakers passed a budget last summer that generated $1 billion in new revenues, including higher sales and income taxes.

"We've made tough, hard decisions that positioned this state to come back as quickly as any other state," said Perdue, who has three years left in her term. "The pain's not over. I've been very honest about that. But do I think we're moving in the right direction? Yes I do."

House Speaker Joe Hackney said he doesn't believe taxes will have to be raised to close next year's budget gap in part because a recovery will begin to take hold. "There'll be some optimism by the fall of next year that we are turning this thing around," said Hackney, D-Orange.

GOP legislators said voters should be angry because last year's tax increases were symptomatic of too much spending in 2006 and 2007 and a failure by Democrats to set aside enough reserves.

"It just would have been less painful if we had enough set aside in the budget for those rainy days," said Sen. Eddie Goodall of Union County, the Republicans' joint caucus leader.

Far-reaching legislation - such as an overhaul of the state's tax system - will be difficult to pass during an election year before the once-a-decade drawing of legislative and congressional district boundaries in 2011.

Meanwhile, the continuing state and federal investigations of Easley and his associates could last throughout next year if charges are filed.

A local prosecutor examining whether Easley or others should be charged based on evidence uncovered in a state elections probe said recently it could take several months before he decides.

Republicans would need to wrest from Democrats six seats in the Senate and nine in the House to control those chambers. Several incumbent Democrats representing swing seats or districts that lean Republican have chosen not to run.

In federal races, all 13 U.S. House seats are up for election, but the biggest race will be for Burr's job. Secretary of State Elaine Marshall, former state Sen. Cal Cunningham and Chapel Hill lawyer Kenneth Lewis are mounting Democratic primary bids.

Peace College's McLennan said a bruising and costly Democratic primary battle should stand to help Burr, who had nearly $3.5 million in campaign coffers in September.

"It's going to be a real tough road for Democrats to hoe," he said.

Longtime state Democratic consultant Brad Crone said the outcome of the 2010 elections will depend on which party can attract independent voters and whether black voter turnout approaches levels seen during the 2008 election when Obama was on the ballot.

"The good news is we've got time to get back on our offensive game," Crone said.





Jennifer Roberts Supports Park Helms' $9,000. ABC Deal Dinner...NC Corruption



Mecklenburg ABC Board Chairman Parks Helms insisted Wednesday that the agency did not mislead the public about its relationship with an international liquor company that treated officials to a $9,000 holiday dinner.

The board paid more than $11 million to Diageo Americas from January to November, according to documents obtained by WCNC, the Observer's news partner.

Agency officials previously released a statement saying it "has no business relation with Diageo other than selling its products in ABC stores in Mecklenburg County."

The disclosure comes as the state Alcohol Law Enforcement Division is investigating the Nov. 18 dinner for 28 people paid for by London-based Diageo, which makes brands such as Smirnoff vodka and Johnnie Walker Scotch. State ABC Commission officials have authority to remove local board members and employees who violate state laws against accepting gifts.

Last week, Helms announced that he and other top staff paid back the cost of the meal at Del Frisco's steakhouse in south Charlotte.

In his first public remarks since the disclosure about payments to Diageo, Helms defended himself and accused political rivals of spreading falsehoods.

Helms said there is no link between the holiday party and payments to the company. The board pays $47 million a year to Diageo and dozens of other vendors for the purchase of their products, he said.

"It's disappointing to me we are going down the road of making innuendo accusations," Helms said.

But Helms' assurances failed to quell criticism from some county commissioners, who appoint members of the local Alcoholic Beverage Control Board.

The agency's statement did not explain that it not only sells liquor, but also makes direct payments to Diageo.

Commissioner Karen Bentley said that Helms should resign.

The board's previous statements about its relationship with Diageo "was at minimum, misleading," Bentley said. "At maximum, it was completely false."

County Commission Chair Jennifer Roberts also said the ABC Board's previous statement was "misleading."

Distillers lobby the state ABC commission to keep their products in its central warehouse through which local stores buy their liquor.

ABC stores are run by local boards across the state. Distillers also try to persuade local panels to stock their brands in the stores.

Local boards place orders from the central warehouse and after the alcohol arrives, the board has 30 days to make payments to liquor companies.

Records show the Mecklenburg ABC Board wrote 22 checks to Diageo from January to November. The board is Diageo's biggest customer in North Carolina.

Helms said Mecklenburg officials decide which brands to carry in their 21 stores based on sales.

A 1996 memo from the state ABC Commission prohibits manufacturers or vendors from giving local ABC boards money "or any other thing of value."

The Mecklenburg ABC Board has previously said that "unsolicited meals is an accepted business practice" and excluded from the law barring gifts.

Helms, who attended with his wife, was the only board member at the dinner. He has said he is repaying $1,000. Board CEO Calvin McDougal, who went with his wife, is repaying $4,000. They agreed to cover the tab for ABC employees for whom repayment would be a hardship. Others must pay $330 each.

On Wednesday, Helms said he did not know who was hosting the dinner before he arrived. He said that the ABC Board has dealings with 60 to 70 vendors whose brands are sold in Mecklenburg County stores.

But commissioner Bentley said Helms "should know better."

"If he didn't violate the policy, he violated the spirit of it," Bentley said.

Roberts, the commission chair, said she did not know if the board would take action against Helms. However, she noted, that he has repaid the company for the dinner.

"They have made things right," Roberts said. "The dinner was mistake and it is not going to happen again."





2nd Fired Exec Claims NC Security Co. Connected To Sen. Tony Rand Broke Law


A second former board member for a small, politically connected security gear maker said the company's chairman tried to persuade him to join an insider trading scheme.

Law Enforcement Associates Corp. reported former sales director and board member Martin Perry's claims of multiple legal violations to the Securities and Exchange Commission.

Perry said company board chairman and state Sen. Tony Rand, D-N.C., invited him to join a plan to manipulate the company's stock. Perry said he and fired Chief Executive Paul Feldman were interviewed by FBI agents about their claims in September.

A letter Perry wrote to the U.S. Labor Department which outlines the charges closely tracks earlier allegations by Feldman.

Perry, like Feldman, said Raleigh-based LEA also may have violated export laws by working with a company in which LEA founder John Carrington had an ownership interest.

Both the company and Rand denied Perry's allegations.

"It's basically just a rehash" of Feldman's earlier claims, Sen. Tony Rand said Wednesday. "Any allegation of wrongdoing are absolutely untrue."

Rand said LEA's directors plan to meet Thursday, and will likely discuss what an outside attorney has learned about the allegations.

The company said in its filing with the SEC that it does not believe Perry's allegations, "nor does the company believe the resolution of these matters will have any material effect upon the financial statements or other information contained in its reports to the SEC."

LEA said it believes the two former executives were seeking federal whistle-blower protections available under federal securities law.

Carrington, a former Republican state senator from Raleigh, pleaded guilty in 2005 to violating U.S. export laws when Sirchie Finger Print Laboratories, a company he once headed and that spun off LEA in 2001, illegally shipped more than $1.2 million in equipment to China through middlemen. Carrington agreed to a denial of export privileges for five years.

Perry and Feldman said they warned the LEA directors against the company doing business subsequently with Safe Source Inc., because Carrington had an ownership stake in the company.

Perry and Feldman said dozens of state politicians owned stock in LEA.

Gov. Beverly Perdue bought about $1,000 worth of LEA stock in 2002 when she was lieutenant governor, her spokeswoman said earlier this month. The stock was not listed on her ethics disclosure form until 2006, when its value topped the $10,000 minimum threshold for reporting, spokeswoman Chrissy Pearson told The News & Observer of Raleigh. Perdue still owns every share of the stock she purchased in 2002, Pearson said.

Perdue has asked at least four state agencies to examine nearly $200,000 in buys of surveillance equipment from LEA since Rand became the company's chairman in 2003. Some gear was bought without competitive bidding.

Rand has said he is leaving the Senate this month to become Perdue's parole chief.




Jennifer Roberts, Part of the Problem



I think I’m done cutting Roberts any slack on this DSS mess. For her to obstruct and slam the attempts of other commissioners to find out what is going on with county’s massive, $200m. DSS operation is too much. And for Roberts to suggest that a closed session airing of DSS’s dirty laundry is not her preferred way to go is an insult to the intelligence of all Mecklenburg County taxpayers.

The only reason Commissioner Bill James and the other GOPers are suggesting the closed session route is in response the “disclosure” stonewall County Manager Harry Jones has erected around the investigation — a construction effort aided and abetted by Jennifer Roberts. Fine. Let’s hear DSS chief Mary Wilson answer questions in open session. Super. Next.

It will also be interesting to see if Commissioner George Dunlap’s confirmation that a federal grand jury probe is underway of DSS shakes anything new loose. Why it took a full month for the probe’s existence to be reported remains a mystery, but at least everyone in town has caught up to the story.

However, it would be wrong to assume that the probe will result in any indictments, both as a matter of fairness and institutional inertia. Prosecutors are political animals and will require some slam-dunk, smoking gun type evidence of wrongdoing for them to move on a DSS devoid, until very recently, of adult supervision of its funds.

On the third hand, not all gross mismanagement rises to the level of criminality. This is why the county commission must itself reestablish public trust in one of its largest ongoing budget expenses. Jennifer Roberts needs to help that process or get out of the way.




Parks Helms Still At Large. Still.


Keep yapping, Parks. Every word is a mini-indictment.

The guy takes over the ABC board and within months a liquor company is treating ABC officials to a $9000 steak dinner. And Parks has the stones to suggest the ethics of such a thing are ambiguous and uncertain. The contempt this man has for his fellow citizens knows no bounds. In fact, Helms’ dissembling over Steakgate recalls nothing so much as his good buddy Jim Black’s infamous fruitcake and canned ham soliloquy, in which the soon-to-be convicted felon lampooned concerns about ethics in government.

When that evil man dies in prison I plan to celebrate with fruitcake and canned ham.

As for Parks, if the Mecklenburg County Commission cannot muster up the votes to remove the guy from the ABC board, we might as well shut down representative government around here. This is not a close call. Only Helms’ long, kingmaking reach has stayed the hand of Democrats on the board who should — and no doubt do — know better.

The sole purpose of a $9000 steak dinner is to buy influence. Period. The ABC operation has one job, buy and sell liquor. Period. ABC has monopoly authority to do so, and suppliers accordingly have tremendous incentive to curry favor with the monopolists. All that is required is a monopolist with enough ego and hubris to accept such favors.

Ladies and gentlemen, I give you Park Helms. Please take him.



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Sources: WRAL, McClatchy Newspapers, Charlotte Observer, Miami Herald, The Meck Deck Blog, John Locke Foundation, Under The Dome, NC General Assembly, Google Maps

Ethics & Corruption Probes Sure To Hurt Dems In 2010, 2012

US House Ethics Committee expands Charlie Rangel's probe.

Visit msnbc.com for breaking news, world news, and news about the economy

Harvard Law Professor Larry Lessig: The effects of Political Corruption on Voters. In this video Sen. Max Baucus is the focus of a lesson on Political and Public Corruption.





Ethics Probes may saddle Democrats in 2010


The House Ethics Committee Investigation of Rep. Charles Rangel (D-N.Y.) is likely to extend well into 2010, according to sources familiar with the probe, meaning that the fate of the powerful chairman of the Ways and Means Committee could become a major political issue for House Speaker Nancy Pelosi of California and the Democratic leadership during a difficult election year.

The committee’s investigation of Rangel’s personal finances, now 14 months old, has dragged on far longer than both Pelosi and Rangel had hoped. Pelosi predicted in late 2008 that it would be over by the end of that year or early 2009. Now sources familiar with the Rangel probe say the investigation could continue into February or March.

The veteran New York lawmaker is the most prominent — but hardly the only — Democrat facing ethical questions.

Recently, Rep. Bennie Thompson of Mississippi has had to deny allegations that he used his chairmanship of the Homeland Security Committee to help raise campaign contributions.

In addition, the Justice Department is continuing its criminal investigation into Democratic lawmakers’ dealings with the PMA Group, a now-defunct lobbying firm that specialized in winning multimillion-dollar spending earmarks from the Appropriations Committee for its clients.

Rep. Pete Visclosky of Indiana, a senior member of the Appropriations panel, and his former top aide Charles Brimmer were issued subpoenas as part of that investigation earlier this year. The DOJ probe is ongoing, according to multiple sources.

And on the other side of the Capitol, Sen. Max Baucus of Montana faces accusations that he nominated his girlfriend for a U.S. attorney position in the Justice Department, while Sen. Roland Burris of Illinois was recently admonished by the Senate Ethics Committee for failing to fully disclose his contacts with indicted former Illinois Democratic Gov. Rod Blagojevich over an appointment to the Senate seat vacated by now-President Barack Obama.

This wave of ethics problems for Capitol Hill Democrats makes GOP strategists optimistic that they can do to Democrats what was done to Republicans in 2006: paint a picture of a majority party corrupted by its own power.

“Thanks to Nancy Pelosi’s lapses in judgment, the rap sheet on the Democratic-led Congress is getting longer by the day,” said Ken Spain, communications director for the National Republican Congressional Committee. “When the speaker promised to ‘drain the swamp,’ she probably didn’t think she’d be fighting off hypocrisy charges four years later heading into the 2010 elections.”

Democrats, though, downplay the GOP ethics attacks, arguing that party leaders are making sure that improper behavior is promptly investigated and punished. They note that a recently leaked document from the House ethics committee showed that the panel and the Office of Congressional Ethics, an independent watchdog created by Democrats in 2008, are reviewing a broad range of cases against lawmakers. To Democrats, this means the ethics process is working as designed.

They also note that Republicans have their own ethical problems to deal with and shouldn’t be spoiling for a fight on this issue.

Sen. John Ensign of Nevada faces a Senate Ethics Committee investigation — and a possible Justice Department probe — of his handling of an extramarital affair with a former staffer, a controversy that has also ensnared Sen. Tom Coburn of Oklahoma. Rep. Don Young of Alaska was accused by an Alaska businessman of receiving tens of thousands of dollars in improper campaign donations. And Republican appropriators had their own ties to the PMA Group, which means that GOP lawmakers are vulnerable on that front, as well.

“After more than a decade of Republicans’ culture of corruption, they are not used to seeing an ethics committee that does its work without interference from Republican leaders,” said Jennifer Crider, spokeswoman for the Democratic Congressional Campaign Committee. “House Democrats passed the most sweeping ethics and lobbying reforms in history and established an independent outside ethics office.”

It is unclear whether Rangel has been interviewed yet by ethics committee investigators looking into his personal finances, although he did meet with a different subcommittee reviewing Caribbean trips made by five African-American House Democrats in 2007 and 2008. A special investigative subcommittee is trying to determine if those trips were improperly paid for using corporate funds.

The Washington Post reported in October that the ethics committee had interviewed Rangel’s son and a top aide, and House investigators have met with officials in New York City’s housing office. One of the accusations Rangel faces is that he improperly controlled multiple rent-stabilized apartments in a Harlem luxury apartment building.

A Rangel spokesman said the New York Democrat “remains focused on the issues that matter most to his constituents: enacting health insurance reform and advancing policies that will help our economy recover and create jobs. He looks forward to the conclusion of the review he himself requested.”

The House ethics committee spent more than eight months searching for a new staff director following the death of its chairwoman, Rep. Stephanie Tubbs Jones (D-Ind.), in August 2008, a delay that hampered the initial phases of the Rangel probe.

The committee has also been forced to expand the scope of the investigation twice in response to new allegations against Rangel, including once in October after he submitted amended financial-disclosure reports showing hundreds of thousands of dollars in previously unreported income and assets.

Rangel has also been accused of using his congressional office to help raise funds for the Charles B. Rangel Center for Public Service at the City College of New York, as well as helping a million-dollar donor to that center retain a lucrative tax break. Rangel has denied all allegations of wrongdoing.

With editorial writers across the country calling for Rangel’s head, Republican leaders have tried on several occasions to push through a resolution calling for Rangel to be stripped of the Ways and Means gavel.

But Pelosi and other Democratic leaders — under pressure from the Congressional Black Caucus — have stuck with Rangel, leaving him atop the panel despite the ethics controversy surrounding him.

The Republicans were also publicly embarrassed when Rep. John Carter of Texas, who offered the Rangel removal resolution, admitted that he had failed to disclose more than $300,000 in stock profits on his annual reports to Congress. Since that time, Carter and the GOP leadership have dropped their efforts to oust Rangel.





Max Baucus gave girlfriend $14K raise



Sen. Max Baucus (D-Mont.), chairman of the powerful Senate Finance Committee, gave a nearly $14,000 pay raise to a female staffer in 2008, at the time he was becoming romantically involved with her, and later that year took her on a taxpayer-funded trip to Southeast Asia and the Middle East, though foreign policy was not her specialty.

Late last Friday, Baucus acknowledged his relationship with Melodee Hanes, whom he nominated for the job of U.S. attorney in Montana, after it was first reported on the website MainJustice.com. But he said that Hanes withdrew from consideration for the job when the relationship became more serious. The following day, Baucus dismissed calls for an ethics investigation, saying, “I went out of my way to be up and up.”

Since his announcement, more details of the relationship have emerged, raising questions about a workplace romance between a boss and employee that Baucus tried to keep quiet, and also contradicting his explanation for why Hanes’s nomination was withdrawn.

Jodi Rave, a former reporter for the Missoulian revealed over the weekend that the paper informed Baucus in March that it was poised to publish a story about Hanes’s relationship with the senator and the fact that he had nominated her for the U.S. attorney job.

The next day, Hanes withdrew from consideration. According to the Missoulian, Baucus’s office never acknowledged a relationship between the two, and the paper did not run a story.

Baucus’s office said yesterday that while Baucus was aware of Rave’s questions, “there were a number of factors that went into Ms. Hanes’s decision to withdraw” from consideration for the U.S. attorney post, including that the couple’s relationship was “changing.”

“These discussions took place before, though around the same time as, the reporter’s inquiry,” Baucus’ office said in a statement. “This, coupled with the fact that they wanted to live together in Washington, led to her withdrawal.”

Baucus’ office also defended the salary boost for Hanes, saying it was in line with what his other staffers were receiving at the time, and argued that she played an important role on the international trip she took with Baucus.

Baucus separated from his now-ex-wife, Wanda, in March 2008 and moved out of their home. Hanes separated from her husband in April 2008 and moved out in early June. Hanes was divorced from her husband last December, and Baucus was divorced in April 2009. They are now living together on Capitol Hill and began dating in the summer of 2008. Hanes and other staff received their raises in this time period, according to public documents that show payroll breakdowns in six-month increments.

Baucus insists that Hanes was well-qualified for the prosecutor position, and his office released a lengthy résumé detailing her expertise as a prosecutor and in private practice.

Unlike many private corporations, there are no Congressional Rules barring a lawmaker from having a romantic liaison with an employee. In several cases, members have married staffers. For instance, Rep. Steve LaTourette (R-Ohio) became involved with his wife when she was still his chief of staff. Former Rep. David Bonior (D-Mich.) first hired his wife, Judy, as a staffer and later married her. Former Rep. Newt Gingrich (R-Ga.) became involved with a House staffer when he was speaker of the House. He later divorced his second wife and married the staffer.

Baucus himself was sued by his former chief of staff, Christine Niedermeier, after he fired her, but the case was thrown out on a technicality. She claimed the senator made unwanted sexual advances, but Baucus vehemently denied the allegation.

Hanes, who worked on Baucus’s staff as his state director and senior counsel, accompanied him on a taxpayer-funded congressional delegation in late 2008 with other members of the senator’s staff, a trip first reported by The Hill. The Baucus group traveled to Vietnam and the United Arab Emirates, at a cost to taxpayers of more than $14,000 per person

On Friday, Baucus’ office said that Hanes traveled in 2007 to Cuba on official travel, months before she and Baucus became romantically involved. The senator’s office said the Cuba trip was meant to promote trade issues between Montana and Cuba. The $1,105 cost of Hanes’ trip was paid for by the Finance Committee. Baucus was not part of the delegation, which also included representatives from Montana agricultural associations.

The two trips constituted Haynes’s only official foreign travel during her nearly six years on Baucus’s payroll.

Baucus’s office said it was appropriate for Hanes to accompany the senator and other aides to the Montana Democrat on the trip to Vietnam and the United Arab Emirates, even though the couple had begun a romantic relationship. The office said previous state directors had also gone on official overseas trips, and that the trip resulted in increased collaboration between universities in Montana and Vietnam. And it released a Jan. 2009 e-mail from an official at the University of Montana praising the senator for the trip, saying it yielded tangible results for the school in boosting educational and cultural exchanges with Asian colleges.

Baucus’s office also denies giving Hanes any preferential treatment while she was a paid member of his Senate staff. A Baucus spokesman downplayed the salary hike Hanes received, saying it was in line with what other aides to the senator received during the same period.

Around the time when her relationship with Baucus reportedly “intensified” in the summer of 2008, Hanes’s salary jumped $13,687, according to public documents covering the April 1-Sept. 30, 2008, period, to among the highest on the senator’s payroll.

In a statement to POLITICO, Baucus’s office argued that “virtually our entire staff” saw their salaries rise during the period, saying the raise was on a par with the legislative director’s and less than the chief of staff’s.

“In fact, during that period, Ms. Hanes’s salary increased by the exact same amount as our legislative director and less than our chief of staff,” said a statement from a Baucus spokesman.

Hanes’s salary did return to a lower level in the following six-month period, Senate records show. According to Baucus’s office, she left the staff in May and joined the Justice Department’s Office of Juvenile Justice and Delinquency Prevention, where she currently works as acting deputy administrator for policy.




Easley aide to appear before elections board



An aide to former Gov. Mike Easley is scheduled to appear before the State Board of Elections next week.

Ruffin Poole, who served as Easley's lawyer during the governor's two terms in office, will attend a Dec. 17 hearing, elections board Executive Director Gary Bartlett said Wednesday.

The board subpoenaed Poole in October to testify during its hearing into alleged campaign finance violations by Easley and his campaign, but Poole convinced a Superior Court judge to quash the subpoena. He argued that his testimony could violate the legally protected conversations he had with Easley as his attorney.

The state Court of Appeals overturned the judge's decision, ruling that Poole should comply with the subpoena because he was a government lawyer and not Easley's personal attorney.

The court's ruling came after the elections board turned the findings of its five-day hearing over to Wake County prosecutors, saying evidence from the hearing "suggests" criminal violations by Easley and possibly others.

The board also ordered Easley's campaign to forfeit $60,000 and fined the campaign another $40,000 for violations of campaign finance law related to unreported flights that major donors provided to Easley aboard their private planes.

Elections board Chairman Larry Leake said at the time that the hearing would be held open to allow members to hear from Poole.





NC Senator Tony Rand Accused of Insider Trading


The former president of a publicly traded Raleigh company is accusing NC State Sen. Tony Rand, one of the state's most powerful lawmakers, of insider trading and other illegal actions.

In a complaint filed with the U.S. Department of Labor, Paul Feldman, who claims he was illegally fired as president of Law Enforcement Associates in August, alleges that Rand had a scheme to profit from manipulating the value of LEA stock, Alan Wolf reports on the .biz blog.

Rand, the Fayetteville Democrat who plans to step down from the state Senate this month, has been chairman of LEA's board since 2003. The company, which makes security and surveillance equipment, was spun off in 2001 from Sirchie Finger Print Laboratories, a Franklin County company started by former state Sen. John Carrington.

In his complaint, Feldman also alleges that Rand told another LEA executive that he previously had traded the stock of Raleigh-based First Citizens Bank based on inside information he had gotten from former president Frank Holding. Rand said that he "planned to do the same to LEA stock," Feldman wrote.

Rand called the charges "insane" and "hogwash."

"He's a disgruntled ex-employee," Rand said Wednesday in a phone interview with Rob Christensen. "I'm embarrassed that Frank Holding has even been mentioned in this mess. But I guess that is part of it, when you are in business and in politics. People think you are fair game and maybe you are."

—————

LEA disclosed Feldman's allegations, including his Nov. 17 letter to the Labor Department, in a filing with the Securities and Exchange Commission on Tuesday.

Feldman also alleges that Rand and other LEA board members violated SEC rules by falsifying minutes of board meetings and omitting information in SEC filings. He also contends that LEA sold video equipment and other products through a sister company to police in the Dominican Republic. That violated federal export laws, Feldman alleges.

Feldman wrote that he has been interviewed by special agents for the FBI and IRS related to his allegations.

Rand said he has not been contacted by any law enforcement officials. "This offends me," he added. "There's no truth to any of this."

A spokeswoman for First Citizens wasn't immediately available for comment.

LEA officials responded in its SEC filing on Tuesday that Feldman's "claims are groundless, and are an attempt by a disgruntled former executive to seek retribution from the company."

LEA "does not believe the allegations ... have any merit" and plans to "vigorously defend against these actions."

The company also wrote that Feldman was removed as CEO in August for "insubordination" and "in the face of poor performance."

Feldman claims that Rand and other LEA board members fired him in late August when he was hospitalized for two days because of a "mini-stroke" and unable to attend the meeting to defend himself. Feldman couldn't be reached for further comment.

Feldman is seeking reinstatement as CEO and president of LEA, or economic damages for lost compensation, and "damages to his career, reputation and earning capacity." Feldman had been LEA's top executive for 19 years.

The company has struggled to boost sales of its products, including under-car inspection systems, explosive detection kits and GPS tracking equipment, to law enforcement agencies, nuclear power plants, the military and other customers.

LEA moved its headquarters to Raleigh from Youngsville last year, and has been cutting costs and jobs. It now employs about 25. Chief financial officer Paul Briggs couldn't be reached for comment.

LEA reported last month that net sales fell to $1.9 million during the third quarter, down 21 percent from the same quarter last year. LEA's net loss was $99,000, compared to net income of $96,000 last year.

Its stock now trades for pennies. In 2004 and 2005, when Feldman alleges the insider-trading scheme occurred, LEA's shares surged above $4. At its peak, in January 2005, the stock closed as high as $10.86.

On Wednesday, the shares rose 4 cents to 15 cents.





Federal Grand jury investigating Charlotte-Mecklenburg County DSS



A grand jury is investigating the Mecklenburg County Department of Social Services, which has faced scrutiny over accounting practices and spending since early this year, two county commissioners said Monday.

Commissioner George Dunlap said the Federal Grand Jury has been looking into whether crimes were committed by employees.

Commissioner Bill James said board members were told last month that a federal grand jury is investigating. He refused further comment on the topic, saying commissioners were instructed by a county attorney not to discuss specifics.

The county ordered an audit of the Giving Tree after a DSS employee raised questions about spending at the Christmas charity for needy children. The county discovered checks written out to a county employee who volunteered with the program, as well as money issued to the sister of another employee.

County spokesman Danny Diehl said officials cannot confirm whether a federal grand jury is involved, but said the county "is cooperating with law enforcement to complete the investigation."

The county has asked Charlotte-Mecklenburg police to investigate. A police spokesperson on Monday said their work is ongoing.

Other commissioners reached Monday would not comment on work by authorities. "I want the investigation to have the best possible outcome, said board Chair Jennifer Roberts. "So I am unable to discuss it in the interest of not impeding the work of law enforcement."

In the meantime, James and fellow Republican commissioners Karen Bentley and Neil Cooksey want the county board to meet next week to learn more about ongoing probes.

"There are facts we don't have," James said. "I am just concerned there is stuff even senior management doesn't know."

Diehl said the county will respond to any questions the board has about the DSS audits. "The board has received reports and been briefed on all aspects of the DSS audits that are available to the county manager and staff."

The developments follow Observer stories on Sunday detailing a 74-page memo from a former county employee who headed the Giving Tree. Cindy Brady, who retired from the county in August, wrote she was never given a chance to talk at length about how the charity worked, despite requests to do so.

Brady said the county advanced her as much as $198,000 since 2005 with the approval of her supervisors. Brady said she spent the money on gifts for needy children, but says she did not collect all of her receipts, and some were handwritten or lost.

County leaders say they can account for how about $162,000 was spent by the Giving Tree last year.

But audit reports acknowledge numerous problems with receipts and other documents to track expenses and cited inadequate oversight and controls of the program by management.

The county has announced a number of changes in response to the charity audit and reviews of other DSS spending, including putting department finances under control of the county finance office and re-training DSS employees in financial practices and procedures.

The agency employs about 1,200, with a current annual budget of $176 million.

Brady's memo, dated July 29 and sent to a human resources manager, criticized county investigators for not interviewing her during the audit investigation. The county's former Internal Audit Director Cornita Spears said she first read the memo last month, and it led her to revise her earlier report to include about $33,000 Brady said she returned to the county earlier this year.

County Manager Harry Jones suspended Spears last month over the error.

Why James wants meeting

James cited the Observer story in explaining his reasons for calling the new discussions on DSS. He said he wants to give disgruntled employees a venue to air grievances. For months, James said, commissioners have been deluged with anonymous complaint letters from people who only identify themselves as current and former agency workers.

Some apparently won't divulge their names because they fear retaliation from superiors, James said.

The proposal requests that the board discuss the DSS issues on Dec. 17, with portions of the meeting to be held behind closed doors. It asks that DSS Director Mary Wilson appear to the meeting, and that other department employees be made available.

It also requests that former Giving Tree employees be invited to talk, including former county general manager Janice Allen Jackson, who briefly led DSS on an interim basis until Wilson was hired last year.

Neither Jackson nor Brady could be reached for comment Monday.

The proposal also wants Jones to provide in open session a detailed list of gifts bought with Giving Tree money and information on all items from the charity now in county inventory.

It also asks for copies of all internal memos produced by internal audit and county management involving the Giving Tree.

The county publicly released a three-page report in June and a follow-up report last month. The Observer has requested a longer report by Spears multiple times since July, but the county has said personnel laws bar them from releasing the document.

In order to hold the Dec. 17 meeting, at least five commissioners would have to agree. At least two of the six Democrats would have to sign on.

Roberts, Dunlap and Vilma Leake said they want to hear more about what the commissioners are trying to accomplish in holding the meeting before they can decide whether to support it. However, Roberts questioned whether meeting in closed session was the best approach, and said she is "distressed" that the board Republicans did not talk to her before putting the item on next week's agenda.

Dumont Clarke said he's inclined "to be as transparent and public as possible about this issue and do as little as possible behind closed doors."

Commissioners Harold Cogdell and Dan Murrey did not respond to requests for comments.

Cooksey said his constituents are demanding the board take a "more active role in getting to the bottom of this."

Cooksey disagreed with commissioners who have said they county is spending too much time on the issue and should not look into anonymous complaints.

"When you have issues swirling around, you can't ignore it," Cooksey said. "We have an obligation to see if these allegations have any truth to them or not."



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