Stephen LaRoque is leaving the state House of Representatives but his legal troubles are rippling across the General Assembly.
LaRoque was indicted by a federal grand jury on charges of money laundering and theft from a program that receives federal funds. He has operated an enterprise that loaned federal money to struggling businesses.
First, House Speaker Thom Tillis was under pressure to take quick action, since LaRoque, a Kinston Republican, was one of his lieutenants. Tillis named him co-chairman of the powerful Rules Committee and put him in charge of other committees.
LaRoque abruptly resigned after Tillis said he would hold public hearings into his conduct.
Then there are his former colleagues.
Two colleagues in the legislature who received federal loans from him have resigned, although both say it had nothing to do with LaRoque. Sen. Debbie Clary, a Republican who represented Cleveland and Rutherford counties, announced in June she would resign in November. Questions about LaRoque's re-lending enterprise surfaced publicly in August.
Rep. Mark Hilton, a Republican from Catawba County, didn’t seek re-election this year.
Clary, who is now a lobbyist, was an ally of LaRoque’s from the time he arrived in the General Assembly in 2002, amid a time of divisiveness between two camps of Republicans fighting for control of the caucus.
In 2003, LaRoque formed Piedmont Development Co., a second nonprofit entity to make federal loans in 11 western counties. Clary was on its board of directors. Three years later, Clary asked LaRoque if she could get a loan to buy the building in Shelby where her marketing firm rented space, according to the indictment.
LaRoque said she could but would have to resign from the board, the indictment says, which she did and obtained a $134,000 loan.
In June 2007, PDC loaned $150,000 to Hilton’s property management company. Hilton told The News & Observer last year that the loan allowed him to buy more than three dozen mobile homes to expand his mobile home park. In January 2008, PDC made a $185,000 loan to the construction company that leased the land to Hilton, the indictment says.
LaRoque ran for re-election in 2008, and loaned $28,000 from his for-profit management company to his campaign committee, state elections records show. LaRoque paid a campaign consultant more than $58,000 around that time, records show.
He lost the election, and in 2010 an investigator for the state Board of Elections began taking a closer look at the 2008 campaign loans.
An elections board investigator asked LaRoque if his management firm received money from his nonprofit organizations, and he replied that his firm had a management contract with them, according to the indictment. He didn’t disclose that his for-profit firm had received $250,000 from ECDC, the indictment says.
LaRoque was elected again to the House in 2010, and defeated in the May primary this year. His term would have expired at the end of this year.
Comments
Really?
July 31, 2012 - 8:57am — catgirl1205You need to get out more. Your drivel is as bad as Tricia Cotham's "Obama Truth Squad" blather.
The Tillis Laroque culture
July 29, 2012 - 12:28pm — WilmingtonDemocratThe Tillis Laroque culture of corruption is unbelievable. GOP Leader Laroque took multi million in FEDERAL dollars from the US government to fund his foundation. He then paid himself over $300,000 and also bought fabergege eggs for his wife and numerous other personal items.
He also used these taxpayer dollars to make questionable loans to GOP House members Clary and Hilton.
This is unbelievable. The GOP which syays it wants to shrink government actually had one it's top leaders in the legislature abusing over $2 million in taxpayer dollars to enrich himself, (Fabergeg eggs for his wife) and other GOP House members
You also have the GOP which says it is the Party of family values have a Speaker whose top staff were getting paid $150K and sleeping with married lobbyists.
All of the above are close associates of Myers Park lobbyist Pat McCrory, the GOP nominee for Governor.
So instead of trying to help the state create jobs, the GOP House leadership is using taxpapyer dollars to enrich themselves and sleep with married lobbyists.
Myers PARK PAT!
paid blogger
July 27, 2012 - 7:41pm — mountainmanGo ahead paid blogger, and tell us how your party is so squeaky clean. While everyone who reads this blog knows your pathetic talking points and false accusations about McCrory by heart. It is amazing to me, the level a human being will stoop to for money. Have you no shame??? Prove what your are saying about McCrory or drop the Hogwash. The people are not going to buy the hogwash your shoveling this time.
The TILLIS LAROQUE GOP
July 27, 2012 - 3:06pm — WilmingtonDemocratThe TILLIS LAROQUE GOP Culture of corruption gets worse and worse. Indictments for money laundering and theft. Staffers being paid $150K sleeping with married lobbyists.
Makes the unreported plane flights look like parking tickets compared to the major felony acts committed by GOP legislative leadership. Elect lobbyist Pat McCrory and the special interests will roam the aisles.