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Hearing on Easley's campaign finances starts Monday

Friday, October 23, 2009
(Updated 2:10 pm)

RALEIGH — Former N.C. Gov. Mike Easley's campaign finances go under the microscope Monday when state election officials begin to scrutinize his election efforts and money from the state Democratic Party.

The weeklong investigative hearing could provide new details about more than 25 questioned airplane flights and other activities surrounding the two-term governor while Easley was in office.

The five-member board — three Democrats and two Republicans — could issue fines or reprimands, refer the case to a district attorney for criminal charges, or exonerate the party and The Mike Easley Committee.

Easley is the latest high-profile Democrat before the board this decade, following House Speaker Jim Black and state Agriculture Commissioner Meg Scott Phipps, both of whom ultimately went to prison. Easley is certainly the best known, even after leaving office in January.

Easley hasn't been formally accused of wrongdoing, but political observers expect Democrats to take some hits because of the hearings on the conduct of the former prosecutor-turned-governor.

"It's never happened before. It's not exactly a pleasant spectacle," said Gary Pearce, a longtime Democratic consultant whose clients included Gov. Jim Hunt and John Edwards.

Easley and his election victories were once one of the few bright spots for the Democratic Party in the South. He was someone who "had a reputation of being a tough, courageous, crime-busting DA and attorney general before he was governor," Pearce added. "And this is like Jekyll and Hyde."

Easley joined a high-powered law firm in Raleigh after 16 years in office — eight each as governor and attorney general.

He's essentially been close-mouthed since May as these and other allegations surfaced and didn't respond to requests for comment. An Easley spokesman said in July he didn't believe a board hearing was warranted. Spokesmen for the committee and the Democratic Party have said they were cooperating with the board.

Board Chairman Larry Leake has said he anticipated Easley would be called to testify.

By holding the hearing, Leake — one of two board members originally appointed by Easley — apparently believes it's important enough to examine publicly the ex-governor's activities while he was in office. It's a reflection of the board's increased role as a watchdog and its interest in examining non-cash contributions to campaigns.

"Campaign finance has been the central feature of our political landscape, and the state board is right in the middle of that issue," said Michael Crowell, a lawyer who represented Phipps in her 2002 board hearing. "Until the last 10 years, there just weren't investigation like this."

The hearing stems from allegations that Easley's campaign reported improperly or not at all private airplane flights offered to him and his family by supporters while governor and a car loaner being used by his son.

The Democratic Party got pulled in when it announced in July it was forfeiting more than $24,000 in "in-kind" donations, most of which originated from donors who also have acknowledged flying Easley around while governor.

Leake said in July there were concerns about whether the donations actually were used by the party — leading to questions of whether the flights were earmarked to the party so Easley donors could avoid the $4,000 donation limit per election.

The board plays the role of a public investigative grand jury, issuing subpoenas and taking testimony and is even permitted to offer legal immunity.

The campaign irregularities are scattered around a broader probe by federal prosecutors interested in how first lady Mary Easley landed a job at North Carolina State University while her husband was governor and how the couple bought a lot in a coastal residential development.

Leaders in North Carolina's political circles are anxiously watching the results of the board probe, the latest with the potential to damage further the reputation of politicians in the eyes of the public.

"For anybody that calls North Carolina home, it's not a happy occasion," Senate Minority Leader Phil Berger, R-Rockingham. "It does paint us all with a brush that we prefer not be painted with. It's all the more reason for us to get to the bottom of it and find out what happened and deal with it."

Accompanying Photos

File photo (News & Record)

Photo Caption: Mike Easley

Comments

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Lakeshia

October 23, 2009 - 6:00 pm EDT

The good old boys & girls club continues to look after its own: Meg Scott Phipps, a convicted felon who served time in a federal penal facility, is currently an instructer at Alamance Community College.

Beachwalk

October 23, 2009 - 6:37 pm EDT

The five-member board — three Democrats and two Republicans

Does anyone see a stacked deck here? Democrats have always protected their own, no matter how bad the crime. Republicans generally get rid of their trash, democrats make heroes out of their trash.

Doug Johnson

October 23, 2009 - 11:21 pm EDT

Two very good post by, Beachwalk and Lakisha,
Hopeful voters are now beginning to understand the Raleigh Mafia.
Like Perdue trying to act like the Lone Ranger, this release of felons has been know for 20 years, now she acting like it wrong!
That's what happens in NC when your poll numbers are low!
If she had good poll numbers she be as quite as a church mouse.

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