R.C. Soles, Another NC Democrat Senator Retiring Following Controversy

NC Senator R.C. Soles Retiring



Sen. R.C. Soles, a Tabor City Democrat, said Wednesday he will not seek re-election next year, a decision that comes three weeks after a Columbus County grand jury found probable cause to indict him for shooting a young man in the leg outside Soles' home in August.

Soles, 75, is the longest serving member of the Senate and, as chairman of the Democratic caucus, a member of the leadership. He is the latest in a string of senior Democrats stepping down that likely change the look and likely the style of how the Senate operates.

"I plan to serve out the remainder of my term with the vigor and diligence my constituents deserve and I will continue to practice law," Soles said in a prepared statement. "Public service is a noble calling and I have tried to live up to the ideals of a true leader."

Soles long was at the center of grumbling in his hometown of Tabor City about young men who were former legal clients and hung around his home or law office. In at least one case, Soles pepper sprayed one of the men and, in others, young men banged or kicked at Soles' door.

In the August incident, Soles shot 22-year-old Thomas Kyle Blackburn, who was allegedly trying to kick in Soles' front door.

Soles' lawyer, Joseph Cheshire of Raleigh, has said the shooting was self-defense. Cheshire and Soles repeatedly have said that Soles has been generous to former clients in hoping to ease them back to a law-abiding life. Soles has denied having sexual relations with any of the young men.





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.



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Sources: McClatchy Newspapers, Under The Dome, Miami Herald, NC General Assembly, Google Maps

NC Sen. Tony Rand (Dem) Accused Of Insider Trading...More NC Public Corruption

NC Public Corruption (Guilford County)





More NC Public Corruption (Guilford County)





The effects of Public Corruption.









NC Sen. 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.






NC Sen. Tony Rand Urged Passage of NC Blue Cross Blue Shield Bail Out Bill


Legislation to bail out the State Health Plan is expected to be back before House members Thursday, and several proposed amendments will be taken up that could further delay its passage.

House Majority Leader Hugh Holliman said one amendment would switch the plan from a fiscal year — July 1 to June 30 — to a calendar year so that members can better take advantage of health savings accounts and other cost-saving initiatives, Dan Kane reports.

Another would allow drugs that help the mentally ill to be treated the same as most drugs, instead of being labeled specialty drugs that would cost members more.

A third amendment would restore a benefit that allows members to pay the same co-payment to see a chiropractor as the family doctor. This is the same benefit that former House Speaker Jim Black inserted into the state budget four years ago and helped land him in prison when three chiropractors admitted to giving him cash payments while pushing their legislative agenda. It was later rescinded.

Holliman didn't criticize the proposals, but he said they all come with a cost.

"We're asking the sponsors where the money will come from," Holliman said.

Meanwhile, members of a state employee group are asking House lawmakers to cut out the benefit reductions that would increase co-payments and deductibles and in later years force smokers and overweight members into the most expensive coverage.

"In a year when employees are already facing possible layoffs, furloughs and a freeze in longevity pay reducing health care benefits at over $600 per member is just bad policy," said Chuck Stone, a representative with the State Employees Association of North Carolina.

Holliman, a Lexington Democrat, said putting off benefit reductions for a year would cost the plan $145 million. "With our deficit we don't have somewhere to come up with that," he said.

Holliman and Senate Majority Leader Tony Rand, a Fayetteville Democrat, have urged lawmakers to pass the bail out bill quickly to make money available to the plan before it runs out of money in the next two weeks, and to give the plan time to notify its 667,000 members of benefit reductions and other changes that would start July 1.

Holliman said if the bill gets out of the House Insurance Committee tomorrow it could still get through the chamber next week, though if it is changed it would then need Senate approval as well. The current version would cost the state's general fund roughly $660 million.





Jim Black, Ex-lottery Commissioner together again in prison



Former House Speaker Jim Black has been reunited with a former colleague and fellow felon.

Black, who is serving a 63-month sentence for political corruption, was recently moved to a federal prison in Jesup, Ga., so he could be closer to home. Both he and his wife are in poor health.

The move means that Black is now at the same prison as Kevin Geddings, whom Black appointed to the state Lottery Commission in 2005.

Geddings was convicted in 2006 of fraud for hiding his ties to a lottery vendor. He is serving a four-year sentence.

Black, a 74-year-old Mecklenburg County Democrat, held the top position in the state House for a record eight years before resigning in February 2007 and pleading guilty to state and Federal Charges.




Jim Black on Way to Pa. to Serve Prison Sentence


Former House Speaker Jim Black started his journey to Lewisburg, Pa., Friday to start serving his 63-month prison sentence.

Black left the Franklin County Jail in handcuffs and boarded a van with other inmates. He will serve his sentence at a minimum-security federal prison.

The 72-year-old Mecklenburg County Democrat led the House for eight years as speaker. But in February, Black pleaded guilty to a federal felony charge of illegally taking more than $25,000 in cash from several chiropractors while pushing their agenda in the state Legislature.

On Tuesday, he was sentenced to eight to 10 months in prison and was fined $1 million on a state obstruction of justice charge. Black's state sentence will run at the same time as his federal sentence.

"It was the most foolish and stupid thing I have ever done. It embarrassed my family and the Legislature," Black said in court Tuesday. "It was improper and I knew it was improper."



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Sources: McClatchy Newspapers, Under The Dome, News & Observer, FBI, WRAL, NC General Assembly, ForaTV, SEANC.org, Youtube, Google Maps