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Funneled contributions may have been strategy

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State Board of Elections chairman Larry Leake asked a series of questions Tuesday suggesting that the board believes Mike Easley's gubernatorial campaign had a strategy to funnel contributions through organizations in an effort to skirt contributions limits.

Dave Horne, a lawyer who served as campaign treasurer for Easley's first and second campaigns, testified that he was not aware of such a strategy.

The board showed him several documents that suggested the campaign wanted contributions to go through political parties and organizations to get around the state's limit of $4,000 per individual for election cycle.

"This gives us the ability to raise money from entities thought prohibited such as corporations," Leake read from a document the board believes was prepared by a campaign official.
One of the organizations, according to testimony, was the Democratic Governors Association.

Update: Horne testified that Scott Falmlen, the former chairman of the N.C. Democratic Party was clear that money in the possession of the party was the party's to spend in accordance with the law.

"He was aware of the law. We both knew the law and he was very clear about who controls funds in the possession of the Democratic Party," Horne said.

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About the blogger

Ben Niolet joined The News & Observer in 2003 and has covered the Durham County courts and state politics. Contact him at bniolet@newsobserver.com.

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