Law Enforcement Associates, the Raleigh surveillance technology company, filed for Chapter 11 bankruptcy on Wednesday.

The company had warned in a regulatory filing last month that a recent million-dollar legal judgment could force it to cease operations.

A Chapter 11 filing allows companies to retain assets and continue operating under the supervision of the court until a restructuring agreement is approved by creditors.

The company’s CEO, Paul Briggs, didn’t immediately return a call seeking comment this morning.

In its filing, LEA listed assets of up to $50,000 and liabilities of between $1 million and $10 million.

The company listed its total debt at nearly $1.7 million.

LEA’s main creditor is Barbara Wortley, who is owed nearly $1.3 million.

Wortley was awarded $1.1 million recently by a Wake County jury.

She filed a lawsuit in September 2009 contending that LEA owed her $1.5 million under a 2007 agreement in which she sold her Florida company, Advanced Vehicle Systems, to LEA.

LEA makes surveillance equipment and has about two dozen full-time employees. Its chairman is former Senate majority leader Tony Rand.

Raleigh-based surveillance Law Enforcement Associates said in a regulatory filing last week that a recent million dollar judgment against the company may force it to cease operations.

On June 17, a Wake County jury awarded Barbara Wortley $1.1 million.

Wortley filed a lawsuit in September 2009 against LEA contending that the company owed her $1.5 million under a 2007 agreement in which she sold her Florida company, Advanced Vehicle Systems, to LEA.

LEA said in its filing last week that it is consulting with its legal counsel about whether to appeal the judgment.

"The unfavorable judgment creates serious doubt about the ability of the Registrant to continue as a going concern, as the Registrant does not have sufficient financial resources to pay the judgement," the company said.
 

Raleigh-based Law Enforcement Associates reported today a loss of $4.2 million in 2010 as the company continued to be hurt by sluggish spending by law enforcement agencies.

The company reported net sales of $5.6 million, down from $11.9 million in 2009.

The company's annual loss included a $1.5 million impairment charge for its acquisition of Advanced Vehicle Systems.

LEA also reported a loss of $3.2 million in 2009.

"Despite a challenging environment brought on by sluggish spending among many domestic law enforcement agencies, we made important progress during 2010 to streamline our balance sheet, strengthen our product technologies, and enhance our sales force," Paul Briggs, LEA's president and CEO, said in a release.
 

Law Enforcement Associates, which has come under scrutiny for allegations of insider trading and other illegal activities, has named a new top executive.

The Raleigh company announced today that it promoted chief financial officer Paul Briggs to the CEO spot. He replaces Alan Terry, who took over as LEA's interim CEO in August.

The maker of electronic surveillance gear is being investigated for its sales to state agencies. In addition, LEA's former CEO and sales director have accused company officials, including chairman Tony Rand and Briggs, of numerous crimes.

Last week, the company released the results of its own investigation that found no evidence of wrongdoing by Rand or other company officials.

Last week's annual shareholders meeting of Law Enforcement Associates was quite the Tippett family affair.

The meeting began with shareholders electing a board of directors that included State Sen. Tony Rand and W. Lyndo Tippett, a former N.C. secretary of transportation and good friend of Rand's.   

Although Lyndo Tippett wasn't present at the meeting, his son, Walter Tippett Jr., was.

Tippett Jr., a lawyer with the firm Ragsdale Liggett PLLC, was there representing Barbara Wortley, a woman who filed a lawsuit in September against LEA.

Four years ago, The Motley Fool spotted Law Enforcement Associates as a potential boon to investors — who were willing to bet against the company's fortunes.

Seth Joyner, a contributor to the investment advising web site, said the Raleigh company was making a lot of noise about hitting the big time with a new stun gun but he saw little reason to believe the hype.

He paid special attention to the company's then president, Paul Feldman, noting that when it came to investing stock in LEA, Feldman wasn't putting his money where his mouth was.

Feldman was recently ousted from the company and he is now making serious allegations of insider trading involving some of the state's top political officials, particularly state Senate Majority Leader Tony Rand, who is LEA's chairman of the board.

Read Joyner's take here.

The former president of a publicly traded Raleigh company is accusing Tony Rand, one of the state's most powerful lawmakers, of insider trading and other illegal actions.

In a complaint filed with the U.S. Department of Labor, Paul Feldman, who claims he was illegally fired as president of Law Enforcement Associates in August, alleges that Rand had a scheme to profit from manipulating the value of LEA stock.

Rand, the Fayetteville Democrat who plans to step down from the state Senate this month, has been chairman of LEA's board since 2003. The company, which makes security and surveillance equipment, was spun off in 2001 from Sirchie Finger Print Laboratories, a Franklin County company started by former state Sen. John Carrington.

In his complaint, Feldman also alleges that Rand told another LEA executive that he previously had traded the stock of Raleigh-based First Citizens Bank based on inside information he had gotten from former president Frank Holding. Rand said that he "planned to do the same to LEA stock," Feldman wrote.

Rand called the charges "insane" and "hogwash."

"He's a disgruntled ex-employee," Rand said Wednesday in a phone interview. "I'm embarrassed that Frank Holding has even been mentioned in this mess. But I guess that is part of it, when you are in business and in politics. People think you are fair game and maybe you are."

LEA disclosed Feldman's allegations, including his Nov. 17 letter to the Labor Department, in a filing with the Securities and Exchange Commission on Tuesday.

Law Enforcement Associates, a Raleigh company that sells surveillance and security equipment to the military and other customers, reported weaker third-quarter results.

Net sales fell to $1.9 million, down 21 percent from the same quarter last year. LEA's net loss was $99,000, compared to net income of $96,000 last year.

The company plans to introduce two new products during the current quarter, and has been "much more aggressive at leveraging the insight and professional connections" of its board to boost its business, said Alan Terry, in a prepared statement. Terry, who was named interim CEO in August, wasn't available for further comment.

LEA's board includes Senate Majority Leader Tony Rand, left, who recently announced he plans to step down from the Senate to become chairman of the state parole board. LEA shareholders are scheduled to vote next month to add former Department of Transportation secretary Lyndo Tippett to the board.

Law Enforcement Associates, a Raleigh company that sells surveillance and security equipment, today named a new, interim CEO.

In a prepared statement, LEA announced that its board has appointed Alan Terry as CEO "for an indefinite period of time as he assesses the strengths and weaknesses of the company."

Terry, 50, replaces Paul Feldman, who has been CEO since 2001. Feldman will remain on the board.

LEA is a publicly traded company with 35 employees that was spun off in 2001 from Sirchie Finger Print Laboratories, a Franklin County company founded by former state Sen. John Carrington. LEA moved to Raleigh from Youngsville last year after Sirchie was sold.

Law Enforcement Associates reported that sales and profit rose during the second quarter, as the small Raleigh company won new customers for its security and surveillance products.

Revenue rose to $6.8 million from $1.8 million during the same quarter last year. Law Enforcement also saw net income of $789,000, reversing a loss of $167,000 last year.

The company expects demand to increase for its products, including digital recorders and under-car inspection cameras used by police and military, boosted by federal stimulus money aimed at improving security.