Re: The consulting loophole, revisited

j1c2kp — Tue, 28 Apr 2009 11:12:57 -0400

Who writes the state laws? Legislators! And they protect their own.

The consulting loophole, revisited

ryanteaguebeckwith — Tue, 28 Apr 2009 10:06:55 -0400

Don Beason is being investigated for using the consulting loophole.

As previously noted, the lobbyists must tell the Secretary of State how much they are being paid to argue a special interest's cause before the legislature under state law.

But they do not have to disclose any secondary contracts for political consulting or other non-lobbying work.

Once the state's top lobbyist, Beason often broke up his contracts this way, possibly underreporting his pay from BB&T, IBM and Progress Energy.

His contract with BB&T was exactly one-tenth what he earned from Catawba County during a similar period. (Contracts with government agencies would not benefit from the loophole because they are public anyway.)

A special agent with the Secretary of State said in a court filing that the Albemarle Mental Health Center also underreported its payments.

"The Center was being directed by Donald R. Beason to report a significantly reduced amount and not the actual amount of compensation," agent John Lynch wrote in a court filing.

An audit of the mental health center first showed the discrepancy.

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Re: The consulting loophole, revisited

The consulting loophole, revisited