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Former CEO of Raleigh company accuses Tony Rand of insider trading

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.

Raleigh firm LEA brings in new CEO

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 reports positive results

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.

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