Well, as I said last night, a court date with Jim Black usually involves some sort of surprise. Today was no exception.

Black was sentenced to a $1M fine, plus 10 concurrent months, for felony bribery (offering Michael Decker money for his vote as speaker in 2002), and for obstructing justice by asking chiropractor donors to lie for him to the grand jury.   Judge Donald Stephens also left himself the option of adding another 1.5 to 2 years’ jail time (that’s consecutive, not concurrent) if Black doesn’t pay his fine by December 10th.

What it was like…

Well, it was a bit bizarre.  The proceedings were much closer to a trial than a sentencing hearing.  The weirdness started when Wake DA Colin Willoughby called Black to the stand.  Black’s attorney Ken Bell protested, but Stephens ruled that Black’s plea agreement required him to testify when called upon to do so.  Bell was overheard telling Black, “Just get up there and tell the truth.”

Black looked positively happy to be up on the stand, at least initially. And it was clear he relished the chance to finally be able to tell his side of the story, (Black hadn’t ever taken the stand in his own defense before today.) 

At points, Black seemed to be running the proceedings, interrupting the prosecution to clarify a point here or offer additional information there. There was a smile in his voice as he talked about the political wheeling and dealing that kept him in the Speaker’s office for eight years.  At one point, he was leaning back, arms behind his head, legs crossed, clearly comfortable in his role as foxy old politico.

That all changed, though, when Willoughby started asking about the half-million dollar loan Black had accepted – twice, no less – from a “well-heeled friend” in Raleigh.  The coyness didn’t last long.  Black identified the friend as Don Beason, the state’s most powerful lobbyist.

The story of the loan

According to Black, Beason offered him the money as a bridge loan for a real estate deal with Charlotte’s Center City Partners, who wanted to lease space from Black.  The former speaker said the CCP deal would have required 500K of upgrades. He said he was under pressure by a bank connected to CCP to get the financing through them. When he told Beason about that, he says Beason offered to float him the loan instead. 

What happened next, by all accounts, was an all-out train wreck. Someone working for Black in Raleigh (no one’s saying who) deposited the check directly into his election account, where it couldn’t legally go – a) because it exceeded donation limits, and b) because it was from a lobbyist during session. 

Black says as soon as he found out, he directed his treasurer to refund the money to Beason, and then solicited another $500K check from Beason to go into his business account.

The deal fell through, Black said. In the meantime, he decided he’d “dip” Beason’s (second) loan into his campaign account just before a key reporting deadline to boost his bottom line.  (Politicians will be the first to tell you it takes money to make money.  A candidate with a big account will attract more donations than someone who’s struggling to raise funds.)

Trouble is, Black’s story just didn’t hold up. Here’s why:

• CCP’s Joe Palermo said their talks with Black had taken place a year or two before Black said they had. He said they’d already leased and moved into another new space before June 2007, so the deal couldn’t have been the reason for Beason’s loan.
• Beason’s first check – the one Black refunded - was clearly from his business account, and was made out to “James Boyce Black.” Beason’s second check was from his personal account, and was made out to Black’s bank, rather than to the Speaker himself.  
• Neither Black nor his campaign treasurer, Virginia “I’m not familiar with the circumstances surrounding this issue” Kelly, could recall why or how they’d noticed that Beason’s check had gotten into the wrong account (June 29th) in time to write him a refund check June 30th.

The other side

Prosecutors have a different take on the story. They say the “business deal” was a rationale concocted after the fact to explain the loan, which they contend was meant to go exactly where it ended up – on the bottom line of Black’s campaign report, to help him raise money for the upcoming 2000 election.  The personal loan would go to his business account, from which he would then “loan” his own campaign the same amount. All perfectly legal, and no lobbyists involved.

But someone forgot to launder the check first.  When it went into his campaign account, it opened him up to potential legal action.  Willoughby says the mistake wasn’t discovered till campaign reporting time, mid July. At that point, he says Black directed his staff to “rewrite the past”by backdating a refund check to Beason, and arranging for the replacement check to be deposited after close of session, when a lobbyist would have been allowed to give him money.

Willoughby explained later that the point of the loan story was to prove that Black hadn't been as truthful or cooperative as DAs would have liked.

Beason

Black apparently told investigators Beason didn’t know Black ran the loan through his campaign account.  Hmmm. From what I know about Don Beason, he’s an extremely smart businessman.  If that real estate deal smelled fishy to the DA, it seems likely Beason would have been suspicious of it, too.  But then again, it probably pays not to ask too many questions when you’re dealing with the Speaker.

Beason issued a statement tonight apologizing to his clients and everyone else, and calling the loan a “very serious error.”  No word on whether he’ll face any legal action over this.  From what we know so far, it seems unlikely.  The statute of limitations on campaign finance violations would have run out on this case at least four years ago.  The N&O tonight reports Beason intends to keep working.  Wonder if his clients agree.

What else Black said

The most mesmerizing part of the day was Black’s first hour on the stand when he recounted the backroom dealing that kept him in power. Black testified that Decker had first tried to sell him his support back in 1997. Decker’s price at the time, Black said, was “something up front” plus a handful of legislation – and a written pledge from Senate leader Basnight and then-Governor Jim Hunt that they’d back his bills.  (If that’s true, you’re left to wonder what universe Decker was operating in at the time.) 

Another great story centered on former Iredell Republican Robert Brawley. Black related a story in which Brawley allegedly told former Republican leader Harold Brubaker he’d sell his support for “$300,000 in my children’s trust fund.” Maybe Black’s not telling the truth, or maybe Brawley was kidding. But it still has to give Joe Voter the willies.

Black did his best on the stand to rationalize his actions, saying he never engaged in quid pro quo, and telling Willoughby all kinds of shenanigans are standard practice in political financing.  But when pressed to identify other legislators who’ve engaged in similar schemes, Black either couldn’t or wouldn’t name any other names.

Reactions:

• Stephens described the day’s testimony as “Unsavory. Enlightening, but unsavory.” He says Black’s actions have left a stain on the legislature.
• Ken Bell was just relieved his client didn’t collect any more jail time. He says Black can and will pay the fine.
• Colon Willoughby says the investigation is ongoing.  But one agent I spoke to said it’s running up against a dead end, thanks to the lack of cooperation by Black and others involved.
• Black’s son was present for the sentencing, but declined to comment.
• Black himself slumped and shrank in his seat as the testimony went on, covering his face at several points.  On tight camera shots, you could clearly see the tan line where he used to wear his wedding ring until he had to give it up when he checked into prison.  Say what you want. That's just sad.
  

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