Board of Elections/Easley hearing update, Day 4

SBOE calls it quits for the day, 5:40 p.m.

After Hall speaks for about 20 minutes, Leake closes out the Easley hearings for today.

The board will go into closed session tomorrow morning at 9 o’clock to discuss matters relating to the criminal investigation. The public portion will convene at 9:45.

I’m outta here. Got a story to file. See you in the funny papers.

Hicks out, Hall in, 5:20 p.m.

Bob Hall of Democracy North Carolina, who filed the complaint with the SBOE, is now speaking.

?It?s ludicrous to think that a candidate involved in raising huge amounts of money and his staff would not want to know how they are staking up,” Hall says of the governor’s special account.

Holy cheese doodles, Batman! 5:10 p.m.

Hicks say that Easley told him to tell the board that he wants the board to refer the case to the district attorney for further investigation.

“Do I think there’s enough evidence to justify a criminal case? Absolutely not,” Hicks says. But Easley wants the case referred.

They’re really going after Campbell here, looks like.

The case would go to Wake County DA Colon Willoughby.

Hicks punches Mac some more, 5:05 p.m.

Similar to his cross-examination of Campbell on Monday, Hicks is going after McQueen pretty good.

?It just didn?t happen. It would be a foolish thing for a man to do,” Hicks says of Campbell’s testimony that Easley asked him to submit a false invoice.

Easley didn?t get to his position ?by doing foolish things.?

?He gets there by being very wise and careful about what he does,” Hicks said.

Hicks says he wants the SBOE to refer the case to the district attorney and go after any charges they can find.

Hicks continues to throw Campbell under the bus, 5:00 p.m.

Hicks now speaking. He rails against Campbell again. Says McQueen sent a “false e-mail” to a news reporter saying that he had been paid for all of his flights.

Hicks says there are criminal aspects to this case — not for Easley, but for Campbell.

Cooney makes closing remarks, 4:45 p.m.

“There is no evidence from the way in which the party operated, not a shred of evidence from the way things actually occurred, that there was any kind of a scheme or plan? of running money through the Dem party to the Easley campaign, Cooney says.

Nothing inappropriate, 4:35 p.m.

No evidence indicating that the Easley Committee engaged in any inappropriate fundraising activity, Wallace says.

A lawyer’s 5 minutes, 4:30 p.m.

Wallace began his monologue on the cars and flights by saying he wouldn’t talk more than 5 minutes.

It’s been 1/2 hour and counting.

Airplane talk, 4:15 p.m.

Wallace says the airplane issue is more difficult because there aren’t as many records.

He indicates that the first responsibility for the flight problems lied with McQueen Campbell, because he failed to report the flights to the treasurer of the committee.

?No one knew better what flying he did in connection with campaign events, and no one had more knowledge with respect tot hose flights, than McQueen Campbell,” Wallace says.

Leake asks whether the committee is ultimately responsible for reporting the flights.

?I certainly would agree that the committee ultimately has the responsibility to report this to the board, and I would suggest to you that in that respect the Mike Easley Committee failed to live up to all of its obligation,” Wallace says. “That being said, the treasurer has the responsibility to report to the best of his knowledge. What we?re all learning here is that more is required.?

Wallace defends car deal, 4:05 p.m.

Wallace, a lawyer for the Mike Easley Committee, argues that it has paid back the full amount owed for the Bleecker GMC SUV that was provided to Easley’s campaign, and also paid fees to the SBOE.

?The committee recognizes its failure to address this situation? at the beginning, Wallace says.

?If the board feels like there is more that should have been done, we are receptive to the board?s guidance on that matter. From our perspective, I don?t know what more could have been done,” he says.

Asbridge excused, 3:55 p.m.

Asbridge is excused. Leake then gives the various lawyers involved a chance to make their closing arguments.

?Gentlemen, at this point, we?re going to allow you to briefly tell us what you think about this cause,? Leake says, emphasizing the word “brief.”

GOP candidates and planes, 3:45 p.m.

Attorney John Wallace now questioning Asbridge.

Asbridge, who is a forensic expert, says he was hired to research past news accounts of the campaigns for Patrick Ballantyne, Fred Smith, and Bill Graham, all Republican candidates for governor in 2008.

Photo Credit: Don Carrington

Asbridge says there is no evidence that Ballantyne paid for flights he took during his campaign, either with cash or in-kind.

Attempt here appears to be to say that GOP does stuff just like Easley did. Similar to Cooney’s earlier suggestion that GOP funnels donations through the party for candidates, too.

Fred Smith bought a airplane for $2.5 for flights around the state, Asbridge says. He says that it appears Smith did not report those flights, but can?t prove they were for campaign purposes.

He found no evidence in newspaper accounts that Graham?s flights were reported, but he can?t prove they were for the campaign purposes, either.

SBOE hearings convene, Anthony Asbridge called to stand, 3:35 p.m.

Anthony Asbridge, a former special agent with the IRS, is now testifying.

He says he was asked by Cooney to provide forensic services. He reviewed public records from news accounts, financial reports filed with the SBOE, and also publicly available flight info available for airplanes.

Adjourns for lunch, 2:16 p.m.

So much for my prediction. The SBOE hearing just adjourned until 3:30 p.m. for a late lunch.

Looks like we might go tomorrow, too.

“It’s highly unlikely that we will conclude our business today,” Leake says.

Approaching the 5 hour mark, 2:15 p.m.

Falmlen is still testifying as we approach the 5-hour mark. He might outdo Easley.

Cooney back in the spotlight, 2:00 p.m.

Cooney is now asking questions again — and yes, he’s at his chart on the easel.

Cooney’s premise is that Easley raised more money for the party than the party raised for Easley.

McQueen troubles, 1:55 p.m.

Easley?s lawyer, Tommy Hicks, attempts to further discredit McQueen by getting Falmlen to say that Campbell?s in-kind contribution documentation for the flights were not accurate.

Cooney and Falmlen, 1:40 p.m.

Cooney continues asking questions of Falmlen. You can tell they rehearsed this thoroughly.

Basic premise: N.C. Dems did nothing illegal or questionable.

Chart is back, 1:31 p.m.

Cooney just put up the chart he originally had on Monday — the one that blocked the WRAL-TV pool camera. Deja vu.

Cooney goes after GOP, 1:30 p.m.

Cooney produces documents showing that the GOP contributed $80,000 to the Vinroot Campaign in 2000. He then points out that the Republican Party raised just over $80,000 from donors who had maxed out their contributions to Vinroot that year.

“Is there anything wrong with the Republican Party doing that?” Cooney asks.

“No, sir,” Falmlen repleis.

“Is there anything wrong with the Democratic Party doing that?” Cooney asks.

“No, sir,” Falmlen replies.

They’re baaack, 1:25 p.m.

Cooney has the hattrick on the easel — he just pulled it out for the third time during the hearings.

Cooney now asking questions, 1:20 p.m.

Cooeny is trying to establish that memo’s line about raising “soft money” could have merely meant that the commitments were “soft” and not firm.

Brace yourself for Cooney’s easel, or maybe easels plural, to soon return.

Hit the snooze button, 1:15 p.m.

SBOE member Robert Cordle now questioning Falmlen. More softballs.

Cordle’s main line of questioning centers on coordinated campaign documents that N.C. Dems want to keep portions of secret.

Cordle indicates that both parties want to keep their strategies secret.

Not sure mode, 1:10 p.m.

Falmlen goes into “I don’t know mode” on memos provided by Earls indicating that the Easley campaign relied on soft money funds from the N.C. Democratic Party.

‘Double in-kinded,’ 12:55 p.m.

Under questioning from Earls, Falmlen says the flights were “a bit of an anomaly” and that they were “double in-kinded.”

Raising money, 12:50 p.m.

SBOE member Anita Earls now asking questions.

Earls asks whether any other candidate in the coordinated campaign had a ?special code? like Easley did.

?No, but no one was raising this kind of money, at this level,? Falmlen says.

Funnel money, 12:45 p.m.

SBOE member Peaslee is asking Falmlen questions, suggesting that the ?special account? was really used as a way to funnel money to Easley. Falmlen denies it.

Giving money back, 12:30 p.m.

Falmlen says the state party gave back around $24,000 earlier this year to ensure that their reporting for McQueen Campbell’s flights was correct.

He also says that he wasn’t aware of the N.C. Democratic Party arranging travel for Easley.

Benefits to Dems, 12:15 p.m.

SBOE member Bill Peaslee asks whether Falmlen believes that whatever benefits the Easley Committee also benefits the Democratic Party.

“Not everything, no,” he replies.

Photo credit: Don Carrington

Jim Cooney, lawyer for the N.C. Dems.

Photo credit: Don Carrington

Falmlen continues his testimony.

Account controversy, 12:05 p.m.

Lots of conflict between Falmlen, Jim Cooney, lawyer for the N.C. Democrats, and SBOE member Winfree over whether there was an actual, physical account for the funds raised by Easley ? a ?special account? referred to earlier.

Falmlen says it was just a ledger, or a “source code,” not an account. ?These funds aren?t residing in a special place that says ‘governor’ on it,? Cooney says. ?It?s an event code. It?s not a physical place where the money is going to reside.?

Falmlen says he never received ?direction? from the Easley Committee, only ?requests.?

Saying no to the governor, 12:00 p.m.

Falmlen says he doesn?t recall specific examples of telling Easley he wouldn?t spend the money raised by Easley the way the former governor wanted him to, but he?s ?sure that he did.?

Funds for the coordinated campaign, 11:47 a.m.

Falmlen says that Easley raised around $2 million for the coordinated campaign during the 2000 and 2004 election cycles combined.

SBOE hearing comes back to order, 11:43 a.m.

SBOE members back from mulling documents.

Hearing still in recess, 11:25 a.m.

Photo credit: Don Carrington

Tommy Hicks, Easley’s lawyer

Photo credit: Don Carrington

Chairman Larry Leake (right) and SBOE member Robert Cordle (left).

Board members continue to review documents.

One point of contention is whether the “plan” from the Democratic Party really contains confidential information.

Obviously, reporters want to see the whole thing.

Board recesses for 15 minutes, 10:50 a.m.

SBOE takes a bathroom break. Oh, and some SBOE members want to review documents, too, before proceeding.

Account was for fed candidates, 10:45 a.m.

Falmlen says he “reattributed” funds raised by Easley to a federal account that he reported to the Federal Elections Commission.

Targeted races, 10:35 a.m.

Leake asks whether Easley had any say in how the “special account” funds were spent.

Falmlen says Easley gave them “advice and council” about where to spend the money.

?We had numerous conversations about what the? legislative landscape was, and what the candidates? monetary needs were to fulfill their budget for campaign operations, Falmlen says.

Decisions were made in a ?very collaborative way,? but the final decision was made by the party, he says.

No other purpose, 10:30 a.m.

Falmlen testifies that in 2006, there was a “special account,” which was a physical bank account, where funds that Easley raised went. Those funds were then used for legislative candidates.

The purpose, he says, was to assist in the election of Democratic legislators, and for no other purpose.

Governor’s fund is back, 10:20 a.m.

Falmlen says they created a separate ?event code or source code? to track funds raised by Easley for the coordinated campaign. This was also known as a ?governor?s fund.?

Falmlen denies that the party ever funneled money to Easley in order to potentially bypass campaign finance limits.

Falmlen says he is ?unequivocal? that Jay Reiff never said he would raise money for the party but they wanted 80 percent of it back.

Falmlen says he never received requests from Easley or his representatives to receive corporate funds or to raise monies if most of the funds went to back to the campaign’s benefit.

Treated as a request, 10:10 a.m.

Falmlen says that he treated requests from Easley, the Democratic nominee for governor, as requests, not as commands.

“The party had a vested interest in ensuring that he was elected, but I would look at everything” and consider whether it was a good expenditure of resources, Falmlen says.

?There certainly were occasions when we said no” to Easley, he says.

Primary services, 10:00 a.m.

All of the participants in the coordinated campaign signed off on the plan, Falmlen said.

Photo credit: Don Carrington

He said the coordinated campaign was primarily related to get out the vote efforts.

?We do what can be the most benefit for the entire ticket, which would be get out the vote activities,” he said

Leake asks whether the gubernatorial candidate is the one that people are really focused on.

?That?s correct,? Falmlen says.

Proprietary documents, 9:50 a.m.

Falmlen says that the Democratic Party did create a written plan for fundraising for the coordinated campaign. Falmlen agreed to produce the plan for the SBOE.

Leake says the party has some concerns about the proprietary nature of the plan, and a belief that portions of it should be kept for the eyes of the board only.

Leake said that they will review the plan today and ask Falmlen questions about it. He also said they would have to at some point determine which parts of it might be proprietary and which might not be.

Coordinated campaign questions, 9:45 a.m.

Leake immediate asks Falmlen about the Democratic Party’s coordinated campaign.

Falmlen says it was an effort to get voters to vote a straight party ticket.

SBOE convenes, 9:40 a.m.

Scott Falmlen, state Democratic Party executive director between 1999 and 2005, is sworn in. He’s supposed to be the only witness today.

More easel issues, 9:30 a.m.

Jim Cooney, lawyer for the N.C. Democratic Party, just said he plans to use two easels today.

The SBOE is set to begin for the day.