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Easley's issues go public

Ex-governor's friend Campbell, usually reticent, will face tough questions at hearing this week

By J. Andrew Curliss
acurliss@newsobserver.com

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  • The State Board of Elections, which has law enforcement powers, has been probing the finances of the Easley campaign and the state Democratic Party for several months. It follows a series of newspaper reports this year that raised questions about free cars, flights and how donors appeared to be funneling donations to Easley through the state party. In July, campaign finance watchdog group Democracy North Carolina alleged violations and requested hearings.

    At its stiffest, the elections board could declare that crimes occurred within the state party or Easley's campaign. The board has conducted hearings in the past that led to criminal charges, fines or exoneration.

    Easley's campaign has already forfeited about $3,000 because of an SUV Easley's son was driving that belonged to a Fayetteville car dealer. Easley's campaign said the vehicle was a campaign car that later became a personal one, and paid the money for not listing it as a debt owed by the campaign on public filings. Easley also bought the car from the dealer.

    In addition, the state party has already forfeited about $21,000, the approximate value of donated flights taken by Easley, saying it wanted to show a "good faith effort to fully comply with the law."

  • By its nature, the N.C. State Board of Elections is a partisan board. It is made up of people recommended to the governor by the state political parties, with a 3-2 majority in favor of the party of the governor. Gov. Bev Perdue, a Democrat, recently appointed five people to the board from lists submitted by the parties. Two members are new this year. This is the first time that all five members are also lawyers.

    At this week's hearing, the board members act essentially as judge and jury but also will be the ones asking the questions of witnesses. Lawyers for Easley and the state party will be able to ask questions and challenge witnesses.

    A glance at the members

    Larry Leake, chairman, Democrat

    Leake has been chairman since 1997 and a member since 1993. He presided over recent hearings involving former House Speaker Jim Black and former Agriculture Commissioner Meg Scott Phipps, both Democrats. He was appointed twice by Easley and has raised money for him, leading two former Republican legislators to call for Leake to recuse himself. Leake said he does not have any conflicts.

    He's a lawyer from Mars Hill, in the western part of the state.

    Robert Cordle, Democrat

    Cordle is a Charlotte-area lawyer. He almost went off the board in 2005, except for action by Mike Easley. Easley kept Speaker Jim Black from moving Cordle over to the lottery commission. Easley said at the time he needed Cordle on the election panel for his expertise. Black would appoint Kevin Geddings to the lottery panel instead. Geddings didn't disclose that he had been working for a lottery vendor and was prosecuted for it.

    Anita Earls, Democrat

    Earls is new to the elections board this year. She's a civil rights lawyer who has been mentioned for a federal judgeship in the middle part of the state. She works at the Southern Coalition for Social Justice in Durham and has focused on voting-rights issues.

    Charles Winfree, Republican

    A Greensboro lawyer and member of the elections board since 2001. In past hearings, he has been an active questioner of witnesses. He is a 1981 N.C. State graduate.

    William Peaslee, Republican

    A Cary lawyer who has practiced election law, Peaslee is a past Republican Party official. He was political director, special legal counsel and chief of staff of the state Republican Party until 2006. He's a new elections board member this year.


RALEIGH McQueen Campbell acknowledged this year that he piloted former N.C. Gov. Mike Easley as a candidate, at times for free. But he would say little more about it.

Campbell also wouldn't provide evidence of why he received payments in 2005 from Easley's campaign - checks worth more than $11,000 that were cut to a Campbell-owned company well after Easley's re-election campaign. The listed purpose: travel.

And Campbell refused to reveal anything about his one-on-one talks with the governor.

"They were private conversations," Campbell said in a March interview.

But all that could go public this week. Campbell is one of about 30 people issued a subpoena to appear at a State Board of Elections hearing that opens Monday in Raleigh. Campbell and his lawyer declined to comment, but the board has the authority to seek his testimony as part of the inquiry.

Easley, a Democrat who left office in January, also will be called to speak publicly on concerns that have clouded his record as governor. Easley has previously denied any wrongdoing and has said an elections board hearing was unnecessary.

Easley could decline to answer board members' questions. But the former prosecutor, attorney general and two-term governor would have to cite his constitutional right not to incriminate himself.

State elections chairman Larry Leake indicated that's not likely, saying he fully expects to hear from Easley during the hearing.

Other possible witnesses include a range of top-level Easley and state party donors, as well as staffers who were close to Easley while he was in office.

People who follow state government and politics are anticipating major drama as the inner workings of a high-level campaign come under formal scrutiny.

"This is a spectacle to which all of North Carolina politics will be glued," said Gary Pearce, a longtime Democratic consultant. "We've never had a governor put in the dock and questioned like this."

At its core, the hearing will be focused on typical campaign and election concerns: Did Easley and the party follow campaign finance laws on such things as contribution limits? Did they follow disclosure requirements? Did they adhere to the state's ban on corporate contributions?

Of all the witnesses, Campbell is one who would know plenty about the campaign and could shed new light on matters surrounding Easley, depending on how broad questioning by board members gets.

Campbell was one of the few people, beyond top Easley staff members, who had close access to Easley over a number of years, especially during campaign seasons. And Campbell has said he did all he could for the governor, from flying him around to printing invitations for his fundraisers.

Records show Campbell made some donations to the state party that documents indicate were really for Easley travel, a possible violation of election rules. And Easley's campaign cut a $4,777 check to a Campbell aviation company in February 2005 as well as a $6,300 check that August.

Both checks were listed publicly by the Easley campaign as being for travel, but they were written long after the campaign season was over and at a time Easley was using state-owned planes to get places.

Asked to provide invoices for those payments, Campbell has refused.

A man of many hats

Members of Campbell's family, prominent and politically connected, have raised thousands for Easley's runs for office over the years, mostly from their base in Bladen County, about 80 miles south of Raleigh.

Campbell's father, Mac, was on the State Board of Transportation. His brother Brian has served on the state Aeronautics Council. Both were appointed by Easley.

McQueen Campbell is one of four brothers, and the only one who isn't involved daily in the family's bulk-oil distribution business. His mother is the mayor of his hometown, Elizabethtown.

Campbell forged a different path than his siblings, forming a series of companies and enterprises, from pig farming, furniture making and timber clearing to running an oil-change and state inspection station and a real estate brokerage.

Court files and state regulatory filings show a number of legal disputes along the way, including two major spills that sent hog waste flowing into a creek from his hog operation in 1999 during the administration of former Gov. Jim Hunt, a Democrat. But no action was brought then because "the enforcement packages were lost," according to a memo at the state Division of Water Quality written as part of reviewing another violation two years later.

Campbell is an avid pilot who has also bought and sold dozens of planes and helicopters. It's not uncommon for him to fly off to some spot Down East for an evening, flight records show.

Layers of links

Campbell, 38, is entangled with Easley in several situations that have led state and federal authorities to swarm around the former governor. Some of those may not come up in detail this week if they don't relate to campaign finance law.

One of them involves N.C. State University, where Easley appointed Campbell as a trustee in 2001 at age 30 and again in 2005.

A 1993 graduate of NCSU, Campbell is said to have been the youngest trustee in school history.

"I certainly appreciate him having the confidence in me," Campbell said last year, "understanding whatever I do, because I'm the youngest, I may be a little more criticized."

According to records, Easley turned to Campbell to help create a job for his wife, Mary Easley, a lawyer, at the school in 2005. Records show that Campbell responded by peppering Chancellor James Oblinger and others with calls and e-mails and stayed in frequent touch with Gov. Easley. Mary Easley was fired this year amid uproar about disclosures of the hiring and her $170,000 salary. Campbell resigned his post as board chairman after acknowledging he was involved in the hiring.

Campbell said he'd have won permits at that time from Easley's administration for a land development in Carteret County more quickly than others could have, arguing that he had political contacts and knew whom to call. Easley bought a lot in the development, called Cannonsgate; Campbell was Easley's agent in the deal and documents have since shown the governor accepted a $137,470 discount at the closing. The developer and financial backer of the development also have been subpoenaed.

In another case, the Easley administration helped Campbell. Top officials at the Division of Motor Vehicles waived enforcement actions brought by DMV officers that would have shut down a Campbell-owned state inspection station. Dismissals were sudden and without explanation.

Asked how he got that done, Campbell wouldn't say much at all, other than he called anyone and everyone he knew.

Campbell typically speaks in a soft, measured voice, even when he led N.C. State trustee meetings. But it hides a focus that has made him a financial success. Disclosure forms list him as an owner, director or managing member of 15 companies. He owns property across the state, including a West Raleigh townhome valued at $303,000.

His father is a past president of NCSU's athletic booster group, the Wolfpack Club, but the son has always expressed much greater interest in a different type of sport: politics.

Easley issued a statement when he first appointed Campbell as a trustee at NCSU in 2001. The governor said Campbell has an "aggressive personality."

Steve Tatum, who was once in business with Campbell, said that is the only way to describe him.

"He's very smart, and once he gets his mind set on something he's going to do or get to, he doesn't let it go," Tatum said. "He's very business-minded and he's very aggressive in that."

This week, more North Carolinians are expected to be introduced to Campbell, in the hearing room and on television. Until then, Campbell and his lawyer were not giving any clues about whether the public will see the brash real estate broker or the friend of a governor who doesn't say much.

COMING MONDAY: The elections board flexes its muscles.
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