RALEIGH (AP) — North Carolina's state auditor and her former chief investigator offered scathingly different accounts Friday of why the agency decided to shelve a probe into ex-first lady Mary Easley's lucrative university job.
State Auditor Beth Wood claimed she decided to suspend the Easley audit in March when the head of the investigative division disclosed that the FBI was looking at the issue. But Frank Perry, the investigator, said he didn't know of any federal involvement until months later.
"If she claims that it was done because of knowledge of an FBI investigation, that is false," said Perry, a former FBI agent. "It's a misunderstanding at best and a lie at worst."
Federal investigators have sent several subpoenas to a variety of state agencies seeking information about former Democratic Gov. Mike Easley, his wife's job and their travel. Authorities have focused on Mary Easley's $170,000-a-year work at North Carolina State University.
Mary Easley has since been fired, with the university saying her job was cut because of budget problems. Three other university leaders have resigned amid questions about their role in Easley's hiring.
Wood ceased the audit's work just a couple months after the Democrat inherited the investigation from Republican predecessor Les Merritt. Wood testified Wednesday before a federal grand jury that she initially had concerns about the audit's veracity but planned to continue pursuing it even after the university raised a number of legitimate questions about the report.
That's when, according to Wood, Perry mentioned a federal probe of the Easleys. Wood said she didn't want to get in the way.
"Had the feds not been involved, we would have never put (the Easley audit) on administrative hold," Wood said in an interview. "I would have made them go back out in the field and resolve the issues that North Carolina State raised when they sent their response back. (Perry) was the convincing person. I'm just amazed."
Perry, who left the auditor's office in April, said he learned of a federal probe in May after media outlets began reporting subpoenas were delivered to state agencies. He declined to discuss the audit's findings but said the report was conducted by a team of investigators with decades of experience in the office spanning several administrations. He said Wood halted the audit over his objections.
"I thought it was very well done. I thought it was quite supportable," said Perry, who declined to say whether he had been subpoenaed to discuss the matter. The investigators "are people of outstanding reputation and accomplishment."
Perry said he eventually suggested, in the face of Wood's concerns about the audit, that it be placed on administrative hold — a decision that would allow investigators to later revisit the report. He now works with Merritt at a nonprofit dedicated to public corruption matters.
Wesley Ray, Wood's top deputy, said he believes Perry mentioned a federal investigation during the meeting, but he wasn't sure if it was the first time he'd heard about it. The fourth meeting participant, Lawen Becote, didn't return a call seeking comment.
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