An N.C. Policy Watch investigation
NC lawmaker gets big pay while loaning friends federal money | LaRoque a polarizing force in N.C. General Assembly
Poverty target of federal program | How the investigation was done | The story continues…
- A more subdued LaRoque in court on embezzlement charges — NC Policy Watch (8/06/2012)
- “Stephen LaRoque, Republican Who Hired Unemployed Workers To Clean His Yard, Under Federal Indictment,” — Huffington Post (7/31/2012)
- Elections board may take second look at LaRoque campaign loans — NC Policy Watch (7/27/2012)
- Ovaska discusses LaRoque case on “News & Views” (video) — NC Policy Watch (7/25/2012)
- N.C. Rep. Stephen LaRoque resigns, denies federal charges — NC Policy Watch (7/25/2012)
NC lawmaker gets big pay while loaning friends federal money
KINSTON—N.C. Rep. Stephen LaRoque tells it on the campaign trail, both state and federal government are too big, wasteful of taxpayers’ money and in the way of private business.
“Government can’t be all things to all people,” said LaRoque, a conservative Republican from Kinston, in a televised debate before his 2010 re-election. “We need more self-reliance and accountability.”
But LaRoque, who returned in January to the N.C. General Assembly after a four-year hiatus, takes aim at government waste while quietly accepting generous six-figure paychecks for running two public charities funded with $8 million in federal dollars since 1997.
He’s earned up to $195,000 a year heading the two small economic development organizations—the East Carolina Development Company and Piedmont Development Company—and used the non-profits to loan some of the public funds to his close associates and political allies. Past board members say they were kept in the dark about his pay.
LaRoque a polarizing force in N.C. General Assembly
Controversy stays close to N.C. Rep. Stephen LaRoque, a Kinston Republican whose unapologetic, aggressive style thrusts him into the spotlight on a regular basis.
Now in his third term after a four-year hiatus, LaRoque was named co-chair of the powerful Rules Committee this year by N.C. House Speaker Thom Tillis.
With his heightened role in the state legislature, LaRoque’s return to Raleigh has been anything but quiet.
Poverty target of federal program
The USDA’s Intermediary Relending Program works in areas where big banks won’t, by using infusions of federal cash to fight rural poverty through small business loans.
The program has sent $280 million into the national economy over the last seven years, including $25 million in North Carolina.
Officials based in North Carolina, one of the largest participants in the program, say it’s been an important weapon in fighting poverty in the state’s rural counties.
How the investigation was done
N.C. Policy Watch investigative reporter Sarah Ovaska spent two months looking into N.C. Rep. Stephen LaRoque’s financial connections with his non-profits before publishing this report. Data came from a host of sources—interviews with officials at the U.S. Department of Agriculture’s Rural Development office, past and current board members, experts in the laws governing non-profits as well as some of the borrowers themselves.
For this report, LaRoque was contacted well before the publication and asked for comment, and to provide any information relevant to the inquiry. LaRoque refused to answer questions, saying he felt that the investigation would not be fair to him, but did agree to answer questions submitted to him in writing. He was provided 16 detailed questions about his two non-profits, the East Carolina Development Company and Piedmont Development Company.
The story continues…
- A more subdued LaRoque in court on embezzlement charges
— NC Policy Watch, August 6, 2012 - “Stephen LaRoque, Republican Who Hired Unemployed Workers To Clean His Yard, Under Federal Indictment,”
— Huffington Post, July 31, 2012 - Elections board may take second look at LaRoque campaign loans
— NC Policy Watch, July 27, 2012 - Ovaska discusses LaRoque case on “News & Views” (video)
— NC Policy Watch, July 25, 2012 - N.C. Rep. Stephen LaRoque resigns, denies federal charges
— NC Policy Watch, July 25, 2012 - LaRoque facing more investigations by legislative colleagues
— NC Policy Watch, July 25, 2012 - Editorial: No Cure – Ethics panels useless unless they act
— Fayetteville Observer, July 25, 2012 - Tillis advises LaRoque to step down.
— from NC Policy Watch, July 19, 2012 - Murphy joins House Speaker in asking LaRoque to consider resigning
— from Kinston Free Press, July 19, 2012 - Speaker Thom Tillis advises indicted LaRoque to resign
— from The News and Observer, July 18, 2012 - Good news, if a tad late
— from NC Policy Watch, July 18, 2012 - Scandal? What scandal?
— from NC Policy Watch, July 18, 2012 - Indictment accuses LaRoque steered federally-sourced dollars to luxuries, campaign
— from NC Policy Watch, July 18, 2012 - Excerpts from the LaRoque indictment
— from NC Policy Watch, July 18, 2012 - Breaking news: State Rep. Stephen LaRoque indicted
— from NC Policy Watch, July 18, 2012 - LaRoque Silent on Federal Indictment
— from WCTI 12, July 17, 2012 - NC lawmaker charged with stealing from federal loan program
— from WRAL, July 17, 2012 - Nonprofits as Society’s Watchdogs: Six Recent Examples
— from The Nonprofit Quarterly, August 19, 2011 - State Legislator Explains His Nonprofit Operations—Poorly
— from The Nonprofit Quarterly, August 18, 2011 - House Speaker Tillis watching LaRoque controversy
— from N.C.Policy Watch, August 18, 2011 - Critical LaRoque board member took out loan shortly after leaving
— from N.C.Policy Watch, August 18, 2011 - LaRoque says Pope owes more than $180,000 in principal and interest
— from ENC Today.com, August 18, 2011 - Sen. Clary: $100K loan from fellow lawmaker wasn’t improper
— from The Shelby Star, August 17, 2011 - Rep. LaRoque defends management of non-profit groups
— from the N.C.News Network, August 17, 2011 - Rep. LaRoque says he runs nonprofits with care
— from Raleigh News & Observer, August 17, 2011 - LaRoque responds to N.C. Policy Watch allegations Tuesday
— from Kinston Free Press, August 17, 2011 - Lawmaker fires back at media while defending his nonprofits
— from WRAL.com, August 16, 2011 - LaRoque fights allegations, ‘I don’t think profit is a crime’
— from WNCT, August 16, 2011 - LaRoque’s reactions, a quick recap
— from N.C. Policy Watch, August 16, 2011 - People in Politics – 8/13/11
— from State Government Radio, August 13, 2011 - A legislator’s dealings
— from Raleigh News & Observer, August 12, 2011 - LaRoque to talk to select press on Tuesday
— from N.C. Policy Watch, August 11, 2011 - NC Policy Watch reporter Sarah Ovaska discusses her investigative piece “Public money, personal gains”
— from NC Policy Watch, August 8, 2011 - Weekly News Review – 8/5/11
— from State Government Radio, August 5, 2011 (begins about 9 minutes into the audio clip) - LaRoque defends business practices
— from Kinston Free Press, August 5, 2011 - Republican leader in the NC House comes under scrutiny while refusing to answer questions
— from Beaufort Observer, August 4, 2011 - Rep. LaRoque Accepts Big Checks & Uses for Close Associates
— from Bill LuMaye Show, August 4, 2011