Mike Easley takes the oath at the beginning of his testimony Wednesday morning. Staff photo by Shawn Rocco. 

Gov. Mike Easley is testifying.

On the way into the hearing room, Easley told reporters anything he would say would be from the witness chair.

"No comments. I'll make them in here," Easley said.

He was sworn at 9:33 a.m. and reminded board members that he appointed some of them.

"I do appreciate the board serving," Easley said. "Since I had the privilege of appointing some of you, I wanted to say I appreciate your service."

Board chairman Larry Leake began by asking Easley about the vehicles supplied by car dealer Robert Bleecker.

"It was sort of a loose arrangement," Easley said.  

Day two was full of fuzzy memories, but that didn't prevent some revelations from emerging about the campaign finance strategy of former Gov. Mike Easley's campaigns.

Here's the coverage from Wednesday's News & Observer.

Easley's campaign had a strategy to funnel contributions to the N.C. Democratic Party or outside organizations to avoid campaign finance limits.

For a guy who doesn't have to appear at the hearing, Ruffin Poole's name is coming up a lot. Witnesses have testified that Easley's aide was a go-to guy to get things done, such as a boat permit. Poole was a fixer for Easley.

Columnist Rob Christensen notes that "The lid of the state Capitol dome has been peeled back this week. The State Board of Elections has the crowbar and flashlight, and the political operatives are scurrying for cover."

News & Observer photojournalists Shawn Rocco and Chris Seward have produced a photo gallery from Tuesday's action.

Photojournalist Travis Long has produced a video clip in which developer Gary Allen can't remember very much about writing $50,000 checks.

Click here to comment on the hearings.

State Board of Elections chairman Larry Leake ended Day two about an hour early because he had to meet with the board's attorneys, presumably about its appeal of Ruffin Poole's quashed subpoena.

Here's what when down on Tuesday:

THEY DON'T RECALL: Memories got a lot worse on Tuesday. Officials in Gov. Mike Easley's campaigns and donors said they couldn't remember an awful lot. Those hazy memories made for lots of unanswered questions and a refrain of "I don't recall."

STRATEGY: A memo, which the board believes was written by Easley campaign finance director Michael Hayden, outlines a concerted strategy to use the N.C. Democratic Party and other organizations to avoid campaign finance limits. Hayden doesn't remember writing the memo.

WELCOME, GOVERNOR: After testimony wrapped, Leake said there's a good chance Easley will make an appearance Wednesday.

Gary Allen, a developer, doesn't remember anything about writing two $50,000 checks to the N.C. Democratic Party.

Lanny Wilson, a friend and business associate to Allen, testified Monday that he briefed former Gov. Mike Easley on a list of things Allen wanted including his seat on the Wildlife Commission and a permit for a boat dock.

Wilson testified that an inner circle of big Easley donors understood that big checks to the party would go directly to Easley's campaign.

Allen, a Charlotte native who now lives in Florida, said he doesn't remember talking to the governor about his permit or any circumstances around writing the checks.

"I don't recall the real details on it," Allen said. "Over the course of those years and a few years before, I've made many contributions, not only to candidates and the Democratic Party, but a lot of nonprofits as well. I don't recall the specifics of that."

Nearly every answer Allen gave during his testimony Tuesday began with the words, "I don't recall."

Michael Hayden, who was in charge of raising money for former Gov. Mike Easley's campaign, said he does not remember writing a memo outlining a strategy to funnel money through organizations to skirt campaign finance limits.

Hayden testified that the memo looks like something he could have created, but he did not specifically remember it.
Board chairman Larry Leake had earlier said that the board believes Hayden wrote the campaign's finance strategy, which entailed having contributors give through other organizations.

Hayden repeated what other witnesses have said: that Easley did not care for fundraising and participated in it begrudgingly.

Hayden was the person renting Easley's Raleigh home until late 2003, although he said he did not recall any repairs being made to it while he was there.

On Monday, Easley friend McQueen Campbell testified that he made repairs to the house and then falsified some $11,000 in invoices for flights to pay for the work.

Dave Horne, who was treasurer for former Gov. Mike Easley's gubernatorial campaign, struggled to understand or remember the answer a lot of questions during his testimony Tuesday.

Horne (at right studying a document with attorney David Long) testified that in his role as treasurer he over saw thousands and thousands of contributions and expenses and that he did not see it as his job to review the daily activities of the campaign.

Horne was asked by chairman Larry Leake about a memo that stated money could be funneled through the Democratic Governors Association by individuals who wouldn't necessarily want their names on a campaign finance report, "controversial" people as the memo explained it.

Horne said he didn't understand the concept.

"I'm not sure what's meant by 'controversial individuals' and I don't recall any discussions about that," Horne said.

Gary Allen (center), a Charlotte developer and fundraiser, is in the hearing room with his attorney Steve Smith, left. The Board of Elections isn't sharing its witness list or who is likely to be called on which day, but Allen's prescence is a good sign that he'll be up.

Allen gave the N.C. Democratic Party a $50,000 contribution and developer Lanny Wilson testified that such contributions were understood to be headed to Gov. Mike Easley. Wilson gave Easley a briefing memo that included lots of things that Allen might want, such as a dock permit or to keep his seat on the Wildlife Commission.

Staff photo by Chris Seward. 

The State Board of Elections isn't running a trial.

That fact was pretty clear Monday afternoon, when Board Chairman Larry Leake gave a 15 to 20 minute interview about the proceedings of the day (pictured at right).

It's helpful to note why and how the hearings should not be thought of as a criminal trial.
The hearings are better compared to a Congressional hearing where the purpose is to find and uncover information.

The "judges," who are also asking all the questions, are not impartial. They are trying to uncover more information about campaign finance activity.
The board has subpoena power and witnesses are under oath to tell the truth.

Lawyers for former Gov. Mike Easley, his campaign committee and the state Democratic Party have the right to cross-examine witnesses.

But generally speaking, there was no pre-trial discovery, as is required in criminal cases. That means witnesses, and lawyers for Easley and the party do not know everything the board knows.

Photo by News & Observer staff photographer Chris Seward. 

The News & Observer is featuring extensive coverage of this week's State Board of Elections hearings. Here's what was in Tuesday's paper.

McQueen Campbell testifies that Easley used his campaign to secrety pay for home repairs.

Developers Lanny Wilson and Nick Garrett said they gave big checks to the Democratic Party that they believed were headed straight for Easley's campaign accounts.

Ruffin Poole, a close Easley aide and lawyer successfully had his subpoena quashed. The board is appealing.

Columnist Rob Christensen says that Easley had once built a reputation as a fearless crusader against crime and corruption. That image is now forever tarnished, he says.

Also check out a photo gallery by Shawn Rocco and Chris Seward and a video clip of Campbell's testimony by Travis Long.