Board takes 15-minute break, then adjourns early, 4:10 p.m.
Leake announces that he has a meeting with the Attorney General’s office this afternoon to discuss the appeal of Ruffin Poole’s challenge to the SBOE’s subpoena. The board takes an early recess and will reconvene tomorrow at 9 a.m.
Mac McCorkle sworn in, 3:30 p.m.
Mac McCorkle, Easley’s former “issues czar,” says he was called upon to listen to Easley vent about his troubles with his campaign staff.
He says he had no role in campaign fundraising or campaign operations.
Photo credit: Don Carrington
Allen’s permit, 3:20 p.m.
Allen says he never discussed getting a boat ramp and day dock permit with Easley. He says he never discussed permits with Easley at all.
Asked if he had any difficulty getting the permit, Allen says, ?I thought it took longer than it should have given all that we were asking for was a small boat ramp for a 500-site community.?
Allen says he couldn?t recall whether approval of the permit came before or after he made a $50,000 contribution to the N.C. Democratic Party.
Photo credit: Don Carrington
Allen’s check, 3:00 p.m.
Allen is presented a copy of a $50,000 check that he made out to the state Democratic Party. He says he doesn?t ?recall the details? on the check.
Allen says the $50,000 check was made out to the party, but his assumption was that Easley and others would benefit from it.
Were there any representations on what would happen with that check? ?Not specifically as to this check,” Allen said. “I just think over the course of time that I somehow got the impression that the Democratic Party will look out for its key Democrats, and that Easley would probably benefit from it in some way.?
Garry Allen testimony begins, 2:57 p.m.
Gary Allen, who owned one of the companies that developed Cannonsgate, was just sworn in.
No questions, 2:55 p.m.
Lawyers for the N.C. Dems and Easley have no questions for Hayden. Hayden is excused.
No compliance director, 2:45 p.m.
Hayden testified that there was no compliance director to ensure that campaign donations were appropriate. ?Nobody had that particular title,? he said.
He said they would periodically get checks back from the company that processed their campaign reports saying that a particular individual was over his or her limit.
Jr. helping out, 2:40 p.m.
Haydon said that Easley’s son, Mike Jr., stopped by the campaign a couple times asking how he could help the campaign.
?He didn?t have any direct responsibility with me,” Hayden said. He recalls twice that Mike Jr. stopped by the office.
He said that he couldn?t recall Jr. helping with finances at all.
Hayden’s knowledge of home repairs, 2:35 p.m.
Hayden says he wasn?t aware of any campaign funds being used to pay for the repairs to Easley?s home.
How long did he reside there? ?I do not recall the specific dates of when I moved in,” Hayden said.
“I moved so many times in the course of what I do. I just don?t recall,” he said.
Don’t know much about Campbell, 2:30 p.m.
Hayden says he never recalled flying on a plane with McQueen Campbell. He knew McQueen was a pilot. He knew that state law required Easley?s plane to have two pilots at all times.
Hayden says he knew there were times that they had a shortage of pilots, and McQueen ?would be a person they called? to pilot the plane.
?I don?t recall ever knowing that he specifically provided. I knew he was a pilot. I knew he was piloting planes that the governor was on,” Hayden said.
Funnel donations, 2:20 p.m.
Hayden said he never told Lanny Wilson that he could donate to Easley by donating to the Democratic Party.
‘I don’t recall,’ 2:15 p.m.
“I don’t recall” is becoming a frequent refrain at today’s hearings.
Similar to Dave Horne, Hayden is giving that answer in response to many of the questions put to him by board members over the Easley campaign’s fundraising activities.
Hayden and travel in the state, 2:00 p.m.
?I do not recall ever traveling by air in North Carolina,” Hayden testifies. He had his own car that he used and the mileage was reimbursed, he said.
He requested travel for the governor for fundraising events. He talked to the scheduler, Cari Boyce, and she decided what method of travel would be used for the former governor.
Under Easley’s roof, 1:50 p.m.
Hayden testified that Easley’s campaign let him live at Easley’s house for several months. While there, he was not aware of any repairs to the house.
“The house was not in pristine condition,” Hayden said.
He moved to an apartment complex off Six Forks Road in Raleigh in late 2003, he said.
Photo credit: Don Carrington
Michael Hayden sworn in, 1:40 p.m.
Michael Hayden, Easley’s former campaign finance director, is now testifying.
Hayden says his responsibility as finance director was to “effectively and persistently raise money within the law.”
Photos from today’s hearing, 1:37 p.m.
Attorneys for Easley and the N.C. Democratic Party listen as former Easley treasurer Dave Horne testifies.
Photo credit: Don Carrington
Easley lawyer Tommy Hicks talks to reporters during the lunch break
Photo credit: Don Carrington
2 and 1/2 hours for Horne testimony, board adjourns, 12:05 p.m.
It’s been about 2 and 1/2 hours since Horne was first sworn in. Lawyers for Easley and the N.C. Dems, in addition to SBOE members, grilled him extensively on donations.
The board just adjourned for lunch.
Board will reconvene at 1:30 p.m.
A reluctant fundraiser, 12:00 p.m.
Under questioning by Easley’s attorney, Thomas Hicks, Horne says, ?Fundraising was not a favorite activity of Easley. He was reluctant to make a request for contributions.?
A ‘miserable failure,’ 11:50 a.m.
Cooney sets up an easel (right in front of the WRAL-TV pool camera, HT to Mark Binker) and begins listing campaign donation numbers for the Democratic Party and for Easley’s campaign. He says that Easley raised more funds for N.C. Dems than N.C. Dems raised for Easley.
If the plan was to have the N.C. Democratic Party funnel money to Easley, “it would be fair to characterize it as a miserable failure,” Cooney says.
Jim Cooney, attorney for the N.C. Dems, now asking questions of Horne, 11:40 a.m.
Cooney argues that coordinated campaigns allow candidates to more efficiently use resources to “get out the vote.”
Not my responsibility, 11:40 a.m.
?I did not see my responsibility as treasurer to monitor the everyday activity of the campaign,? Horne said in regards to keeping track of free flights McQueen Campbell provided to Easley.
Awareness of diverted funds, 11:35 a.m.
?I don?t remember being aware” whether the Easley campaign was directing donations made out to the Democratic Party back to the campaign, Horne says.
Maximum allowed, 11:35 a.m.
“I advised fundraisers at the [Easley Committee] that they could accept maximum contributions of $4,000, and that contributions above that would be refunded to the individuals,” Horne says.
Long testimony, 11:30 a.m.
Dave Horne is still testifying, by far the longest testimony during the SBOE Easley hearings so far.
Horne’s relationship to Falmlen, 11:20 a.m.
Horne says he didn?t have a ?regular interaction? with Scott Falmlen, state Democratic Party executive director between 1999 and 2005.
Flying the governor, 11:10 a.m.
Asked if he was involved in scheduling flights for Easley in 2004, Horne says he doesn?t recall being involved. He said he doesn?t recall discussing flights with McQueen Campbell. He said did not know how frequently Compabell flew the governor, but he did know that, occasionally, he had done so.
Funds raised for Easley, 11:00 a.m.
Horne agrees that the ballpark amounts raised for Easley were $18 million during the 2000 and 2004 campaigns combined.
Campaign funding loophole for Easley, 10:50 a.m.
Horne is asked about a memo describing a ?loophole? that supposedly allowed contributions to be funneled through the Democratic Party. The memo recommended that the Easley campaign take advantage of that loophole.
?It?s my understanding that the Democratic Party can make unlimited contributions to campaign committees,? Horne replies. ?I think [the memo refers] to that fact. I believe that was the law in 2000 and continues to be the law today.?
The memo calls this a ?coordinated campaign add on.? Horne says he doesn?t recall discussing the term ?ad on? to a coordinated campaign.
Asked to define a ?coordinated campaign,? Horne says, ?A coordinated campaign … was an attempt to get Democratic Party nominees for the Council of State … to cooperate and to attempt to use campaign resources efficiently to deliver the message of the Democratic Party to voters in the election.?
Campaign reports filed “on time,” 10:40 a.m.
?We received data from the campaign organization and from donors and from anyone else who would present us information,” Horne testified regarding the campaign’s handling of donor information.
“We employed the best firm that we knew in North Carolina ? to prepare those reports,” he said. “I would review those reports sometimes multiple times to make sure they contained what the law required. Those reports were filed on time by our office.?
Easley “special account,” 10:35 a.m.
Horne says he doesn?t know anything about a ?special account? in the Democratic Party earmarked specifically for the Easley campaign.
Gary Allen contributions, 10:30 a.m.
Horne said that he doesn’t recall soliciting money from Gary Allen, who owned one of the companies that developed Cannonsgate, the coastal community where the Easleys got a special deal on a lot.
?I have met Mr. Allen and I know he was a supporter of Gov. Easley,” Horne said.
He says he wasn?t aware that Allen made a $50,000 contribution to the Democratic Party.
How to funnel “controversial” contributions, 10:20 a.m.
Horne has testified about a memo recommending that campaign workers funnel campaign donations from ?controversial? individuals through a Democratic Party political action committee rather than having the donations go directly to Easley?s campaign.
An invoice that didn’t stand out, 10:00 a.m.
Horne testified that McQueen Campbell submitted two invoices to the Easley campaign requesting compensation for air travel.
Horne said that Campbell?s invoice from Dec. 29, 2004, ?didn?t stand out? to him. ?There were a lot of bills that were paid during the calender year 2004,? he said.
The second invoice, dated June 30, 2005, ?had less specific information? on it, Horne said. ?I asked [assistant treasurer Rebecca McGhee] to get additional information about [the invoice] … some verification that it was an obligation of the committee.?
Horne said McGhee provided ?a written memo.? Horne read the memo aloud to the SBOE. It explained that McGhee had talked with Easley, and Easley instructed her that ?we should go ahead and pay the invoice.? Horne said he then paid the invoice.
This ties in with McGhee’s testimony from yesterday that she paid a suspicious travel invoice from Campbell in 2005 covering “various flights from November to April” that had no additional backup documentation.
McQueen’s integrity, 9:55 a.m.
Larry Leake just asked Horne about Easley’s view of McQueen Campbell.
“I recall [Easley] making a general statement expressing confidence in [Campbell],” Horne said. He added that Easley may have said something like Campbell “was the most honest guy he knew” at some point.
Easley’s lawyer, Thomas Hicks, probably doesn’t share that opinion, to judge by his aggressive questioning of Campbell yesterday.
Second day of SBOE hearings begin fashionably late, 9:35 a.m.
Easley’s former campaign treasurer, Dave Horne, is the first witness sworn in.
Photo credit: Don Carrington
