Federal prosecutors will
undoubtedly scour Easley's words and his version of various events
related to free flights, a free car, and campaign-paid home repairs
that Campbell testified were purposely hidden from the public.
"The
matters from this week are probably one slice of the investigative
pie," said Kieran Shanahan, a former federal prosecutor and Raleigh
lawyer and a Republican. He had a minor client in the hearing, and
after watching said he saw nothing that would make prosecutors hesitate.
Easley
spoke openly of the federal inquiry in his testimony, talking of
isolation from friends and associates to avoid obstructing justice. He
said he has been scouring bank accounts in detail, recently cutting a
$4,200 check to cover unpaid rent on his son's college housing. At one
point, during a break, Easley went five rows deep into the audience and
shook the hands of an FBI agent and IRS agent who were taking notes and
have been tracking him.
The board's
decision to refer its case to a state prosecutor could be folded into
the wider range of other issues surrounding Easley that all seem to fit
a pattern of accepting favors, at times apparently mixed with
government action. Those other concerns include: a job Easley helped
create for his wife at N.C. State University; action by his
administration to waive violations or possibly speed up permits; and a
$137,000 discount he accepted on a coastal lot he purchased.
Some
of the same people involved in those issues, such as developer Gary
Allen, testified narrowly, and the elections board avoided getting into
material outside of campaign finance law.
The election board's
inquiry also exposed a top Easley aide, Ruffin Poole, as being involved
in fundraising while he was also serving as a key agent for Easley to
clear obstacles at various state agencies. Poole, now working at the
same law firm as Easley, fought the board's repeated efforts to
question him. The case reached the state Court of
Appeals, which has said Poole should be required to appear. The board
could return to Raleigh to call him as a witness.
Discrediting Campbell
Easley's
lawyer, Thomas Hicks, says investigators should focus just as hard on
Campbell as they will on Easley. He has sought to discredit Campbell as
a witness, relying especially on comments Campbell has made to The News
& Observer.
Campbell, for instance, had told The N&O last
year that he had been paid by the Easley campaign, writing on Oct. 21,
2008: "When I flew for the Easley campaigns, reimbursement was
provided."
At the hearing, he produced a four-page memo and said he hadn't been paid for scores of flights worth more than $100,000.
Elections
board member Anita Earls, a lawyer and Democrat from Durham, said the
board weighed both "words and actions" in reaching its unanimous
conclusion.
"We would not have referred it, obviously, if we
didn't think that there was some evidence that McQueen Campbell's
version was true," she said.
Anecdotal answers
Easley did not make a major blunder, such as denying something and then having to admit it after a confrontation.
But
Easley also testified in a way, familiar to reporters, that he has
perfected in 16 years of holding statewide office. Faced with tough
questions, Easley has been known to divert discussion to otherareas, or
tell an anecdote.
During the hearing, for example, Easley
testified he contacted car dealer Robert F. Bleecker this spring to
settle up on an SUV that Easley's son had been driving for six years
but that the Easley family didn't own or pay for.
Bleecker had testified that he had called Easley and sought payment before then.
Elections chairman Larry Leake asked Easley if Bleecker had been in error.
Easley
didn't answer the question: "My recollection is the last time I talked
to Mr. Bleecker I was vacuuming out my fireplace and the vacuum cleaner
came unhooked and all of the dust started blowing out the back and I
had to hang up and we didn't discuss the car at all." It drew chuckles
throughout the room.
Much of the testimony covered a central
dispute and possible crime involving Easley and Campbell, dealing with
two payments from Easley's campaign treasury to Campbell in 2005.
Campbell
says that the money covered house repairs he paid for on Easley's home
in Raleigh and that Easley suggested he get the money from the campaign.
Related - or not?
Easley
says he thought the payments were for flights. He denied taking part in
any scheme to avoid paying Campbell for $11,000 in home repairs,
including fixing a major water damage problem; records now show Easley
also accepted a $5,400 insurance claim for water damage he hadn't paid
for.
At one point in his testimony, Easley emphatically told the
board members that "these two invoices are totally unrelated, at least
in my mind, totally unrelated to anything to do with the house."
But he seems to have contradicted that in his own testimony.
It
came when he talked about researching whether he had actually received
the insurance payment. He was looking at the accounts this year because
investigators were bearing down on him.
Easley told the board he
wanted to acknowledge that he had checked and was clear on the fact
that he, and no one else, had received the insurance money: "We
received the check, and the check was deposited."
Leake: "But you didn't realize that until our investigators, if you will, got involved in making inquiries."
"No," Easley told Leake. "They didn't make any inquiry about that."
Easley then revealed that, in his mind, he actually had connected a Campbell invoice with his home repairs insurance payment.
"I
made the inquiry," Easley testified, "when I found out about something
I'm sure you are going to ask me about, which would be one of the
[campaign flight] invoices."
Easley also testified that, as he
went looking, he had hoped that he hadn't received the insurance money
and was now willing to give it up.
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