news-record.com

NEWS

Update: Grand jury indicts 3 with ties to Perdue campaign

Tuesday, November 29, 2011
(Updated 7:57 am)

RALEIGH (AP) — A Wake County grand jury on Monday indicted former campaign workers and a donor of North Carolina Gov. Bev Perdue as part of an investigation into previously undisclosed flights leading up to her 2008 election victory.

Grand jurors handed up indictments in state court against former Perdue campaign finance director Peter Reichard of Greensboro; Juleigh Sitton of Morganton, until recently the director of the governor's Western Office in Asheville; and Trawick H. "Buzzy" Stubbs Jr., a former law partner with Perdue's late first husband in New Bern.

Stubbs and Sitton were each charged with one count each of filing false campaign reports and obstruction of justice, according to the indictments, and Reichard was charged with one count of obstruction of justice. All the charges are felonies, with potential penalties ranging from community service to prison time.

The charges come more than a year after Wake County District Attorney Colon Willoughby said he would investigate payments of air travel for the campaign following a State Board of Elections probe of Perdue's campaign committee.

Willoughby said Monday that additional charges could be forthcoming, but he didn't expect Perdue to be charged. Perdue was interviewed as part of his investigation and has been cooperative, Willoughby said.

"The conduct of the governor has not been an issue," he said.

The indictments accuse Sitton and Reichard of hiding that Sitton was being paid an additional $32,000 — $2,000 a month for 16 months — to work full-time for Perdue's campaign through outside money that was funneled through a merchant banking firm operated by Reichard called Tryon Capital Partners. Reichard solicited and accepted money from Morganton business owner Charles M. Fulenwider, according to the indictment. Fulenwider has not been charged.

Stubbs is accused of contributing or paying expenses totaling more than $28,000 through his law firm by paying for flights for the benefit of the Bev Perdue Committee until Nov. 1, 2008, his indictment said. Stubbs prepared documents in October 2008 that purported the flights had been contributed to the state Democratic Party when they actually had gone for the committee, documents said.

The indictments come at an inopportune time for Perdue, who is gearing up for next year's re-election bid while struggling to overcome a third consecutive year of a poor economic picture in North Carolina. This year, she's also taken her political lumps from Republicans now in charge of the General Assembly. GOP leaders managed to override her veto of the Legislature's two-year budget.

Now Perdue will have to defend herself on the flights in the court of public opinion. Perdue declined comment on the indictments but said in a prepared statement her campaign committee has cooperated with Willoughby's investigation.

"I will, however, reiterate what I made clear at the beginning of the investigation, and what the investigation has confirmed: as a citizen, a candidate for public office, and an elected official, I have strived to follow the rules and laws," she said. "I am proud of my record, and I remain sharply focused on strengthening our schools, creating jobs and moving North Carolina forward."

Reichard attorney Hart Miles said his client is prepared to go to trial but would like to have the case resolve without a long trial. "I urge everyone to withhold judgment until the case is concluded and the facts are known," Miles said.

Stubbs said in an email statement it "was never my intent to violate any law and I intend to plead not guilty."

"I never asked for any favors nor have I received any personal benefit from my support and help advancing" Perdue's campaign, she said.

Willoughby's office began investigating payments of air travel for the campaign last year following a State Board of Elections probe of Perdue's campaign committee. The board fined The Bev Perdue Committee $30,000 in August 2010 for failing to report more than 40 flights — many by wealthy donors — leading up to her winning gubernatorial run in 2008.

The Wake district attorney has said that Perdue wasn't the focus of the investigation.

Perdue's campaign spokesman blamed the problems at the time on inadequate and sloppy monitoring efforts while Perdue was lieutenant governor and a gubernatorial candidate. Meanwhile, the governor hired two prominent Raleigh defense attorneys, but she, her campaign and one of the attorneys said the governor had done nothing improper or illegal.

In February, a Wake County grand jury indicted Robert Lee Caldwell of Morganton man on a felony count of obstruction of justice over allegations he deceived Perdue's campaign by hiding the source of money used to pay for a campaign flight. He had been re-appointed by Perdue to serve as a trustee at Western Piedmont Community College in 2010. The case has not been resolved.

The board also found other 2008 gubernatorial candidates — including likely repeat 2012 Republican challenger Pat McCrory — had flight reporting issues, too, but the panel declined to fine those campaigns. Board Chairman Larry Leake said at the time the magnitude of any of those violations weren't as great.

Perdue's campaign accepted the $30,000 fine, but pointed out it reported the previously undisclosed flights after a self-audit of the committee's books.

Perdue's problems with unreported flights follows the 2010 conviction of former Democratic Gov. Mike Easley on a single felony charge of filing a false campaign finance report in which he accepted responsibility for failing to disclose a 2006 flight on a private helicopter. The count, which required a $1,000 fine, concluded sweeping investigations into his personal and professional life after he left office.

State Republican Party Chairman Robin Hayes said Monday's indictments remind Perdue of Easley and predicted that voters will remove her from office next November.

"The people of North Carolina deserve better," Hayes said.

But state Democratic Party Chairman David Parker focused upon Willoughby's comments that Perdue wasn't a focus of the investigation in saying: "It's time to move on."

Accompanying Photos

Joseph Rodriguez (News & Record)

Photo Caption: Gov. Bev Perdue

Comments

This article has been closed to new comments. Comments are generally closed after 14 days. However, comments may be closed earlier at the discretion of the News & Record.

Inappropriate content? Please report abuse.

rooster8786

November 28, 2011 - 1:52 pm EST

"Now, Perdue will have to defend herself on the flights in the court of public opinion." And then, hopefully, in a court of law. If she knew, she's liable. If she didn't know, she's incompetent. Either way, when a company doesn't meet expectations, the top dog is usually fired & if the team doesn't do well, the coach is fired. In this instance, she needs to be fired; i.e. NOT re-elected.

EdinNC

November 28, 2011 - 2:17 pm EST

Just fine her $1000 and leave her alone. She's a Democrat in power, so even that would be extreme.

balance

November 29, 2011 - 2:51 pm EST

Yes, they never questioned Bill Clinton. Democrats get it easy.

bbzeus14

November 28, 2011 - 2:50 pm EST

It seems to me that this entire matter is "much ado about nothing that important." And Perdue will be re-elected.

rooster8786

November 28, 2011 - 3:13 pm EST

so all around her are indicted, convicted, or jailed and you say it's "much ado about nothing that important." That's okay with you? What about leadership, ethics, and integrity in your leaders or do those qualities not matter to you? I like leadership, ethics, and integrity in people elected to serve in leadership roles, from local officials to the nation's capital.

terrier2003

November 29, 2011 - 3:31 pm EST

Are you serious?

triadwatch

November 28, 2011 - 3:16 pm EST

some reporting will also look at a local developer who helped out as well, go interview him but am sure you will not report this,

http://triadwatch.blogspot.com/2011/10/sound-familiar-local-greensboro.h...

but triadwatch did.

Panacea

November 28, 2011 - 4:16 pm EST

rooster: if Perdue did know, then I agree, she should be charged. However, if she did not know that does not make her incompetent. No one is omniscient.

bbzeus: This is not much ado about nothing. This kind of behavior is the core of what campaign finance laws are all about. The influence of money is why the OWS folks are protesting. To let this slide is just more of the "good old boy" politics North Carolina is infamous for. We don't need more of that. We need to clean up our politics. I'm glad this is being investigated, and I hope that anyone who committed a crime is charged and tried . . . including Bev Perdue.

rooster8786

November 28, 2011 - 6:11 pm EST

omniscient? How about just plain observant and knowledgeable?

The_Doctor

November 28, 2011 - 10:15 pm EST

Panacea: I'm impressed that you would dare say that this is a serious issue; after all, it's a Democrat campaign that's involved. Criticism of one's own party is the hardest kind of criticism there is, because it takes courage and self-assessment that most people don't have. And BTW, I'm a Democrat, too.

Panacea

November 29, 2011 - 10:04 am EST

Doc, I thank you for the kinds words. I would say it should not be surprising to anyone that I would say these things, because if you look at the totality of what I write you can see where my thoughts on this issue come from.

I believe in honesty, character, and integrity. I have slammed a number of people to the wall for their serious ethical lapses: Stan Kowalewski, Steve Arnold, Skip Alston, Mike Easley, and many others. If or when I think Bev Perdue is cut from the same cloth, I'll start slamming her, too. Hard.

Right now I'm not sure what to believe, so I haven't had much to say on that. I did criticize her for being a wishey washy coward on confronting the Republicans on the social agenda they've been pushing rather than focusing on the economy. But she turned around on that.

As for rooster: how is she supposed to be observant? If she's told one thing and another is true, how is she supposed to know? Is she supposed to spend her every waking hour verifying what her aides tell her? That's a highly unrealistic expectation. When you have people working for you, you have to be able to trust those people are following the rules. Sometimes trust is misplaced, and that may be all she's guilty of: trusting the wrong people. That's hardly a criminal act, it doesn't make her incompetent (though possibly foolish).

terrier2003

November 29, 2011 - 3:33 pm EST

I am the type of person who thinks that the apple doesn't fall far from the tree. Just look at her roll models: Hunt and Easley. And to think she doesn't know what is going on? Plausable deniability... Isn't that the magic phrase in politics?

Panacea

November 29, 2011 - 10:27 pm EST

I prefer proof to innuendo.

Though, of course, if you lay down with dogs you should expect to get fleas.

BobbyMcGee

November 28, 2011 - 4:42 pm EST

Pat McCrory's chances to become governor in 2012 just got better!

balance

November 29, 2011 - 2:49 pm EST

Good, maybe he'll cut teacher pay in half, cut pensions for state law enforcement, and privatize our universities. He can make it illegal to require a college degree for teachers. Then he can cut taxes for millionaires and use the budget gap as an excuse to cut K-12 education. It is the GOP way.

terrier2003

November 29, 2011 - 3:35 pm EST

I would just look for him to cut the excess spending without sacraficing the necessary.

And Bev Perdue, although hailed as a friend to educators, has done no favors for the teachers.

Fear mongering seems to be the Democrat way recently...

Theo

November 28, 2011 - 8:52 pm EST

The Jokers next!!

The_Doctor

November 28, 2011 - 9:59 pm EST

Why am I not surprised at all by this? This kind of corruption is rife in the system, and that goes for Democrats AND Republicans. Don't forget that Obama's money-buddy Tony Rezko was just sentenced. And don't forget old Jack Abramoff. And John Edwards. The list just goes on and on.

If Bev knew about this, she ought to be impeached, removed from office, and subjected to criminal prosecution, but she's a powerful politicians, so that would never happen.

The next obvious question is, What other criminal violations were/are going on in the Perdue camp? Beyond that, it makes you wonder which other state politicians have similar violations, or worse ones?

I'm from originally from Philadelphia, if there's one thing that might comfort you folks, it's that the alleged corruption in Perdue's campaign is chump change compared to what goes on just in the city of Philadelphia, let alone at the Pennsylvania state level. Maybe Bev should call the ex-PA Governor "Fast Eddie" Rendell for damage control advice.

Panacea

November 29, 2011 - 10:06 am EST

Let's not forget Marion Barry, former mayor of Washington DC. I lived through that mess.

terrier2003

November 29, 2011 - 3:42 pm EST

It is disgusting when this happens, no matter who the offender is. Democrat or Republican. And this is probably just a tip of the iceberg... but as you say, knowing and proving are two different issues.

But why people support her is beyond me... She has proven to be an ineffective leader. NC has one of the highest unemployment rates in the country, one of the highest gas taxes, they constantly route moeny from peter to pay paul... It just seems that she isn't doing anything to better NC. Not to mention our debt...

Panacea

November 29, 2011 - 10:29 pm EST

North Carolina reflects the nation as a whole. The problems this state faces are being faced by every other state.

There's no magic bullet. A Republican governor would still be facing the same problems, and I'm not convinced they'd have had any more success even if they implemented a hack and slash agenda.

But they'd have gotten a lot more social agendas through.

mary16

November 28, 2011 - 9:49 pm EST

of course she knew.....but these days it's do as I say, not as I do, the political double standard.
Just like they keep raising taxes, they dont' mind because they dont pay theirs.

The_Doctor

November 28, 2011 - 10:19 pm EST

I agree that Bev probably knows about campaign finances, including the parts that are not quite legal. But "knowing it" and being able to prove it are two different things. Bev is a powerful sitting Democrat, and that means she's virtually invulnerable to the law's reach even if she does know or was involved in illegal finance.

InventorNC

December 1, 2011 - 11:55 pm EST

We must insist in the law being followed. If someone cannot follow the law they must pay the penalty. Period. That includes everybody. Our governor included. Well meaning is not a defense. If our governor wanted the job she was obligated to follow the rules along with her election staff.

That means she is responsible for her associates' activities, whether they are volunteers or paid workers. Tough love is the only way for our government to operate. If not, where does the cheating end?

eMail Updates

Advertisement | Advertise with Us

Featured Ads

Search

Advertisement | Advertise with Us
Advertisement | Advertise with Us
Advertisement | Advertise with Us

News & Record Network Sites

User Tools

  • Social Networking
  • RSS
  • Share
  • Sign in to MyNR

Search