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.
How much did Don Beason really make last year?
If Raleigh attorney Michael Weisel is correct, then most lobbyists' clients report from 15 to 30 percent of their payments to the state.
According to a report from Democracy North Carolina, Beason reported $145,521 from 16 clients in 2007.
That would put his actual income at between $485,070 and $970,140.
Of course, Beason is being investigated for underreporting his income — and we use this word to mean reporting below the traditional and reasonable amount used by other state lobbyists — so the real pay could be much higher.
As noted previously, Beason may have reported about 16 percent of his pay from the Albemarle Mental Health Center, five percent from IBM in 2004 and potentially 10 percent from BB&T.
Reporting on lobbying expenses is up to the client.
Raleigh attorney Michael Weisel, who is representing some of former lobbyist Don Beason's clients, told Dome that state law requires the client — whether it's a business, advocacy group or special interest — to report how much a lobbyist is paid.
"The lobbyist usually tells the corporation how much of the lobbyist's fee or salary is reportable under North Carolina law, but the principal is responsible (and liable) for reporting," he wrote in an e-mail to Dome.
He said that principals typically report from 15 to 30 percent of a fee or salary paid to a lobbyist, based on the state's definition of reportable lobbying expenses.
"A lot of what a lobbyist does is giving strategic political advice, monitoring legislation, and looking for legislative trends," he wrote. "These are not lobbying activities and are not reportable."
Weisel contends that his clients did not "underreport" their expenses.
Lobbying expenses are not deductible from the federal income tax.
As noted previously, former lobbyist Don Beason is being investigated by the N.C. Secretary of State over the amount of income he reported as lobbying related. (Instead, he may have considered some of his pay for consulting.)
Raleigh attorney Michael Weisel, who is working for some of Beason's former clients, tells Dome that there is a "natural tension" on the issue.
"Any costs/expenses characterized as lobbying are not deductible as a business expense," he writes in an e-mail. "Therefore, a business seeks to minimize the amount attributable to lobbying as defined by the IRS."
On the other hand, state law clearly outlines lobbying expenses.
Weisel took issue with Dome's use of the word "underreporting" for lobbyists who do not report income for consulting expenses.
"There is no 'underreporting' of compensation despite the investigators characterization," he wrote.
Spotted at last night's NCAA championship game in Detroit:
Gov. Beverly Perdue
U.S. Rep. Mike McIntyre
UNC President Erskine Bowles
UNC-Chapel Hill Chancellor Holden Thorp
State Sen. Don Vaughan
Former UNC Board Chairman Jim Phillips
Lobbyist Johnny Tillett
Former Treasurer candidate Michael Weisel
See any other political types at the game? E-mail dome@newsobserver.com.
Joe Sinsheimer continues to stay involved in Democratic politics.
He and his wife, Toddi Steelman, are hosting a fundraiser for Democratic congressional candidate Larry Kissell. The reception is scheduled for Sept. 28 at their Raleigh home.
Sinsheimer is a former opposition researcher for Democratic campaigns. He retired from full-time politics after the 2004 election, but he has been a vocal advocate for tougher ethics laws and a critic of many Democrats in the N.C. House.
He put pressure on then-Speaker Jim Black, a Mecklenburg County Democrat now serving a federal prison sentence for corruption.
Former Gov. Jim Hunt is the headliner for the Kissell fundraiser. Other sponsors include lobbyist Al Adams, public relations executive Ken Eudy, former candidate for treasurer Michael Weisel and lobbyist Leanne Winner. Suggested contribution: $100.
Kissell is running against U.S. Rep. Robin Hayes, a Concord Republican.
Janet Cowell has won the Democratic nomination for state treasurer.
With nearly 80 percent of the precincts reporting, Cowell had 47 percent of the vote, while Buncombe County Commissioner David Young had 36 percent and former Wake County Democratic Chairman Michael Weisel had 17 percent.
Cowell's campaign spokesman Jonathan Ducote said that Young and Weisel had both called and congratulated Cowell, who now goes on to challenge Rep. Bill Daughtridge, a Rocky Mount Republican, in the general election.
Michael Weisel will celebrate at 518 West.
The Democratic candidate for state treasurer will watch election night returns with his family starting at 8 p.m. at the Italian restaurant in Raleigh's fashionable Glenwood South neighborhood.
The Black Political Caucus of Charlotte-Mecklenburg endorsed Hampton Dellinger.
Dellinger and a Democratic rival for the lieutenant governor nomination, state Sen. Walter Dalton, met with the caucus membership Sunday night at the Little Rock AME Zion Church.
"The large crowd of caucus members and candidates present showed how important the group's endorsement is," Dellinger sad in a statement.
Gubernatorial candidates Bob Orr and Beverly Perdue, U.S. Senate candidates Kay Hagan and Jim Neal, and Treasurer candidates Janet Cowell, Michael Weisel and David Young also attended.
The caucus is one of four major black voters' groups in a major North Carolina city that routinely makes political endorsements.
Former U.S. Sen. Robert Morgan endorsed Michael Weisel for treasurer.
Morgan, who represented North Carolina from 1975 to 1981, announced yesterday that he was backing Weisel, a Raleigh attorney, in the Democratic primary.
"I have known Michael Weisel since he began his career in Buies Creek, N.C., and believe he would make an excellent state treasurer because of his knowledge, experience and integrity," Morgan said in a statement.
Weisel is a graduate of Campbell University Law School in Buies Creek. He faces state Sen. Janet Cowell and Buncombe County Commissioner David Young in the primary.