Law Enforcement Associates, a Raleigh company with close ties to former Senate Majority Leader Tony Rand and former N.C. Department of Transportation Secretary Lyndo Tippett, reported Monday that sales and revenue declined in the first quarter while the company's mounting legal fees led to a 22 percent jump in operating expenses.
LEA reported first quarter net sales of $1.2 million, down from $1.8 million in the same quarter last year. The company had a net loss of $267,395, compared to a net loss of $97,218 in the same quarter last year.
LEA, which develops and manufactures electronic surveillance equipment, has been under scrutiny since two former executives told federal officials last fall that Rand, the company's chairman, had engaged in an insider trading scheme.
Last week, the DOT released a copy of a federal subpoena for Tippett that is part of the probe into the administration of former Gov. Mike Easley.
In the subpoena, prosecutors asked for documents and information about LEA. Tippett, a longtime LEA investor, joined the company's board last year.