Executive Privilege

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The News & Observer has disclosed new information about the actions of Gov. Mike Easley, a Democrat and former state attorney general who served as governor from Jan. 2001 until Jan. 2009. The coverage has spurred state and federal investigations that have found wrongdoing and are continuing, and led to the resignations or firing of several high officials, including the chancellor at N.C. State University. 

It follows reporting by the N&O of the Easley administration that included probes in recent years of the state's mental health system, the probation system and a lawsuit filed by the newspaper against Easley in 2008 over deletion of emails and documents the paper said were public records. Easley issued an order on his last day in office to preserve emails.

As Easley left office, the N&O continued to pursue records, including about travel by Easley while he was governor, a request the N&O first made in 2005. Easley's administration had denied the request several times over the years, citing a law that keeps certain state security plans a secret.

By March, the N&O had obtained records and conducted interviews that led to a story and follow-ups that raised questions about free vehicles provided by auto dealers and a free Florida trip for Easley paid by NASCAR titan Rick Hendrick, who also has interests in state government.

In mid-May, the newspaper published a two-part series, Executive Privilege: The Perks of Power.

Part One disclosed that the governor took free flights from supporters and spent plenty of time at the coast at a big cost to taxpayers. It also showed the state Democratic Party was an apparent conduit for some donations, which were later forfeited.

Part Two outlined serious questions about one of those supporters, Raleigh real estate broker McQueen Campbell, who was also chairman of the board at N.C. State University. The story detailed how Campbell and the Easley family each benefitted from a coastal land purchase for the Easleys; how Campbell was helped by the Easley administration; and raised questions about how a job for the governor's wife was created at the university.

The university's provost, who all officials had said acted alone in forming the job for the first lady, resigned within days of the series. So did Campbell. The FBI began serving subpoenas.

By June, more reporting would reveal a secret settlement deal for the provost. On June 8, email messages were released that showed the governor helped create the job for his wife. The chancellor was forced to resign and NCSU fired the former first lady as questions persisted about her work.

Since then, reporting has shown that Easley accepted a six-figure discount on the coastal land, which is in a development called Cannonsgate. He also took a $50,000 benefit from one of the state's most exclusive private golf clubs. Records showed his office was involved in the club's successful request during the severe 2002 drought to pump water from a creek that feeds a drinking water reservoir to save the golf course's grass.

In October, the state Board of Elections held hearings that for the first time put the campaign and actions of a North Carolina governor under formal scrutiny.

In four days of hearings, Campbell admitted under oath flying the governor from 1999 to 2006 without getting paid, saying the flights were valued at about $102,000. Campbell also alleged that he and the governor were part of a scheme to use $11,077 in campaign money to pay for home repairs on Easley's personal residence in Raleigh that Campbell oversaw. Testimony showed that Easley also accepted a $5,400 insurance check for repairs that Easley didn't pay for. Easley denied knowledge of Campbell not getting paid for flights, and said he in no way was part of any scheme to use campaign money to fix his house.

The state board, made up of three Democrats and two Republicans (three of them Easley appointees), took unanimous action. Board members determined that evidence suggested crimes were committed by Easley while he was in office, and made a formal criminal referral to a state prosecutor.

They fined the Easley campaign $100,000, determining that his campaign broke laws by taking the flights and not reporting them. They also said the Easley campaign funneled illegal donations through the state Democratic Party.

In addition, state elections board members formally called on legislators to pass laws that ensure candidates can be held financially responsible for misdeeds within their campaign. There have been other vows of reforms by lawmakers and executive orders issued by Gov. Beverly Perdue aimed at improving government ethics and transparency.

By December, records and interviews would show that Easley had created a new state program to speed up environmental permits for developers, who pushed for the plan while giving him campaign donations.

Board members had wanted to speak with one of Easley's longtime aides, Ruffin Poole, because records and testimony showed he was involved in shepherding permits and other regulatory matters while also having a hand in fundraising for Easley. Poole refused to testify, invoking his right against self-incrimination, and he would resign from the board of the foundation that distributes
millions in tobacco money and leave his job at the McGuireWoods law firm, where Easley now works.

An N&O report in late December showed that Poole made unusual contact on the permits at Cannonsgate.

On Jan. 21, 2010, Poole was indicted on 51 corruption charges, including extortion and money laundering. The charges include that Poole was a short-term investor at Cannonsgate, receiving $30,000 in about four months, while he also took official action to ensure the project got needed permits. The indictment also described how Poole and Campbell were especially close.

The state prosecutor handling the case is Bill Kenerly of Salisbury, a Republican who is not seeking re-election.

The federal prosecutor overseeing the case is George E.B. Holding, a Bush appointee who is up for replacement by the Obama administration. Charlotte lawyer Thomas Walker was nominated for the job, making Holding the first of three federal prosecutor positions in North Carolina to be slated for removal.

There had been political maneuvering around Holding's job for months, until U.S. Sen. Richard Burr, a Republican, announced he would use a Senate procedure to keep Holding on until the
probe of Easley and former U.S. Sen. John Edwards is completed. U.S. Sen. Kay Hagan, a Democrat, had also said she wanted Holding to stay on the job, but she had not announced her intentions on whether she would block his replacement.

To read the most recent stories, please click here.

To read all of the coverage from beginning to end, please click here.

To see a timeline and documents of actions in a key year — 2005 — please click here.