Easley campaign manager testifies

A longtime aide and the former campaign manager for former Gov. Mike Easley did on Wednesday what he didn't do last month: Answer questions from authorities probing his old boss.

Jay Reiff, Easley's campaign manager in 2000 and 2004 who also was on Easley's administrative staff at different points, was at the federal courthouse where a grand jury met as part of an ongoing and secret probe of Easley, the Democratic governor who left office in January, J. Andrew Curliss reports.

Reiff, who also managed former Treasurer Richard Moore's gubernatorial campaign, emerged after a couple hours inside, but did not speak to reporters. His lawyer, Michael Weisel, said that Reiff "in response to a subpoena, appeared before the grand jury and fully and completely answered all their questions for several hours." He said it was "regarding the Easley investigation."

Weisel went on to say that it would be inaccurate to say Reiff had not cooperated with last month's state elections board probe, though Reiff did not appear and elections chairman Larry Leake expressed frustration that the board's subpoena power did not extend to Virginia, where Reiff was working on a campaign.

Weisel said Reiff "fully and completely cooperated" with the elections probe and "made himself available to be called but, in fact, was not called."

Leake could not be immediately reached for a response.

Watch the decision

The State Board of Elections has voted to refer a possible criminal case against former Gov. Mike Easley and others to the Wake County District Attorney's office. It also assessed $109,000 in penalties: $9,000 against Democrats, $100,000 against the Easley campaign. (pool video)

 

Republicans will push for reform

Senate Republican Leader Phil Berger said Senate Republicans intend to advance a slate of legislation meant to curb campaign corruption.

Berger said he was happy to hear a suggestion from State Board of Elections chairman Larry Leake that candidates be held personally liable for fines issued by the board.

I applaud the State Board of Elections for their service and investigation into the former Governor’s administration and campaigns.  Their suggestions about campaign finance reform are welcome as Senate Republicans will soon offer comprehensive legislation to address corruption in campaigns.  The $100,000 levied against the Mike Easley Committee and referral of evidence to the Wake County District Attorney were necessary and appropriate steps to take.  The information uncovered in these hearings will undoubtedly be helpful as state and federal authorities continue their investigations.  At some point the people of North Carolina will have the full truth about this sad episode.

What campaigns need now...

State Board of Elections chairman Larry Leake commended the treasurer of former Gov. Mike Easley's campaign.

Dave Horne testified that he knew little about flights Easley was taking. Campaign treasurers are responsible for certifying finance reports are accurate. Leake said Horne should be commended for questioning an invoice for flights that turned out to be falsified.

And he said no evidence showed that Horne knew about the flights.

"We have to have people willing to be campaign treasurers," Leake said. "A campaign treasurer can't be held responsible for everything that happens in a campaign or we won't have any campaigns."

Board still wants to talk to Poole

State Board of Elections chairman Larry Leake said the board would still like to talk to Ruffin Poole, a patronage boss, lawyer and aide to former Gov. Mike Easley.

The N.C. Court of Appeals was considering Friday a judge's order granting Poole the right to not testify to the board.

The Board of Elections members are, from left, Anita Earls, Bob Cordle, Larry Leake, Charles Winfree and Bill Peaslee.

Staff photo by Shawn Rocco.

Board wants candidates on hook

Former Gov. Mike Easley testified that he didn't know much of anything about how his campaign worked.

He didn't count the money and only called potential donors when he was forced to by his fundraisers. His campaign must now forfeit $100,000 — $60,000 to pay for flights and $40,000 as a penalty.

As of June 30, Easley's campaign had $121,984 in its account, according to campaign finance records.

Board chairman Larry Leake said its very easy for campaigns to spend all their money, which would make it difficult to collect assessments from the Board of Elections.

That's why, Leake said, the board is recommending to the General Assembly that state law be changed to make a candidate personally liable for such penalties.

"Candidates do not accept sufficient responsibility and ownership of their campaigns," Leake said.

Easley got what he wanted

Former Gov. Mike Easley's attorney said Easley got what he asked for in a referral to prosectors.

"I got what I asked for," said Thomas Hicks, an attorney for Easley

Hicks surprised the Board of Elections on Thursday by asking them to refer the case to the Wake County District Attorney. Board chairman Larry Leake mentioned Easley by name as someone who may have committed criminal acts.

Hicks told reporters that investigators should focus on Easley friend McQueen Campbell, who testified that Easley asked him to falsify invoices to pay for repairs to Easley's Raleigh home. Easley said the allegation is false.

Board chairman Larry Leake said the board had received evidence that suggests Easley or others may have committed a crime.

"This board has received evidence which, if believed, would tend to indicate that criminal violations of our election laws and campaign finance laws have occurred on the part of Mike Easley and perhaps others," Leake said.

Easley supporter and friend McQueen Campbell testified that Easley told him to file a false invoice for campaign flights to pay for repairs done to Easley's Raleigh home. Easley said the allegation is false.

Campbell has essentially admitted to a crime. The question is whether Easley was involved.

"I think McQueen Campbell is where the emphasis should be placed," Hicks said.

A $100,000 penalty for Easley campaign

The State Board of Elections this morning ordered former Gov. Mike Easley's campaign to pay $100,000 for failing to report campaign flights and sent Easley's case to the Wake County District Attorney's Office for a criminal review.

Board chairman Larry Leake said the board had received evidence that suggests Easley or others may have committed a crime, reports Ben Niolet.

"This board has received evidence which, if believed, would tend to indicate that criminal violations of our election laws and campaign finance laws have occurred on the part of Mike Easley and perhaps others," Leake said.

Easley supporter and friend McQueen Campbell testified that Easley told him to file a false invoice for campaign flights to pay for repairs done to Easley's Raleigh home. Easley said the allegation is false.

The board also found that the Easley campaign solicited $9,000 in contributions to the N.C. Democratic Party by telling the contributors that the money would be earmarked for Easley's campaign, a violation of state law. The board ordered the N.C. Democratic Party to surrender $9,000. The board decided that there was no evidence of other crimes committed by the party.

Closing: Easley campaign

The State Board of Elections allowed lawyers to make closing statements in the Gov. Mike Easley campaign finance hearings.

John Wallace, an attorney for Easley's campaign committee:

THE CAR: Easley and his campaign have paid more than $25,000 for the use of a GMC Yukon that neither Easley, nor his committee, were paying for.

FLIGHTS: Tracking which flights were campaign-related has been difficult for the committee. "One can never be sure that one has captured all the flights and one can never be sure that all the flights that one has scheduled in a spreadsheet occurred," Wallace said.

McQueen Campbell, who provided scores of flights for Easley, did not submit invoices to the campaign treasurer.

"Mr. Campbell failed utterly to give information to the treasurer," Wallace said. "I don't know what the treasurer can do if he knew nothing about the air travel."

Plan not public

When State Board of Elections Chairman Larry Leake introduced a document outlining Democrats elections plans, he said the document might never be made public.

The document outlines a plan by the N.C. Democratic Party to coordinate get-out-the-vote and other efforts to push a full slate of Democrats.

The News & Observer has requested access to the document, which has been submitted to the board and, the newspaper argues, should be a public record. 

Board member Bob Cordle, in his questions to former party official Scott Falmlen, noted that Republicans would want to see the document as much as newspapers. Cordle told Falmlen that the Democratic Party would have to make a show of what information needed to be kept secret.

"You're going to have to show us what's proprietary and what's considered to be proprietary," Cordle said.

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