Timeline of Charlotte councilman James ‘Smuggie’ Mitchell’s R.J. Leeper ownership dispute
Mecklenburg County District Attorney Spencer Merriweather released a report Tuesday with findings of an investigation into Charlotte council member James “Smuggie” Mitchell’s ownership in construction company R.J. Leeper.
Investigators found Mitchell no longer profits from or has any top role in the company after defaulting on a loan he received in order to buy a 25% stake in the construction company. But Mitchell has insisted he still possesses a 25% ownership stake.
The ownership dispute can be traced back more than two years, December 2020, when Mitchell became president and CEO of R.J. Leeper Construction while he was still a member of the City Council. That’s when he accepted a loan from R.J. Leeper’s parent company Bright Hope Construction. Then and now, the city has active contracts with R.J. Leeper.
State law prohibits a city from doing business with a company if a member of its governing board owns 10% or more.
Dec. 29, 2020: Mitchell, a sitting council member, became president and CEO of R.J. Leeper Construction and accepted a $375,000 partnership loan from Bright Hope Construction.
Jan. 11, 2021: Mitchell announces sudden resignation from the City Council because of conflict of interest concerns.
July 2021: Mitchell leaves R.J. Leeper with a 25% ownership stake.
Dec. 22, 2021: Bright Hope partner Malcolmb Coley calls in Mitchell’s loan plus more than $7,300 in interest. That brought the note to almost $382,400. Coley gave Mitchell five days to pay, according to the Bright Hope records.
Jan. 24, 2022: A firm representing Bright Hope sends Mitchell a notice of default.
March 1, 2022: Bright Hope sends Mitchell a foreclosure request on his ownership stake.
March 22, 2022: Bright Hope sends Mitchell a letter saying it took the ownership stake.
April 2022: Mitchell raises objections to Bright Hope’s foreclosure. He files for an at-large seat on the Charlotte City Council.
July 26, 2022: Mitchell wins a seat in the City Council general election.
Aug. 30, 2022: City attorney Patrick Baker sends a memo informing the council Mitchell could face criminal penalties after taking his oath of office for owning too much of a company that does business with the city.
Sept. 2022: The NC SBI confirms it’s investigating Mitchell’s ownership stake at Mecklenburg District Attorney Spencer Merriweather’s request.
Nov. 28, 2022: A $78 million wastewater treatment plant project led by RJ Leeper is deferred to a later date with no explanation.
Dec. 8, 2022: Mitchell and his attorney willingly meet with SBI investigators.
Dec. 21, 2022: The NC SBI concludes its investigation and hands the findings to the Mecklenburg District Attorney’s office.
Jan. 5, 2023: The District Attorney’s office sends a letter to SBI agent Rod Massey finding “extremely compelling” evidence Mitchell has no stake in RJ Leeper or its parent company Bright Hope Capital.
This story was originally published January 5, 2023 at 10:59 AM.
