Legislature, News

Federal court documents detail allegations of Rep. David Lewis’s elaborate scheme

Former State Rep. David Lewis, a Harnett County Republican (Photo: NCGA)

2018 was a bad year for Rep. David Lewis. 2020 looks to be worse.

The federal government today alleged that State Rep. David Lewis with failure to file a tax return, making false statements to a bank and illegally funneling campaign money for personal use. He was charged with criminal felonies, according to court records.

Lewis, a Republican who had represented Harnett County in the House since 2002, also resigned his legislative seat today.

The first criminal allegation against Lewis centers on two bank accounts in which he illegally funneled campaign money to a personal account under a fake name.

According to court documents, on  July 31, 2018, Lewis opened a campaign account, which he later used to make legal contributions to the state Republican Party. However, that day he had his campaign treasurer cut a check for $50,000, payable to “NCGOP.”

But the next day on Aug. 1, 2018, Lewis opened a second account at a different bank, under the name “NC GOP, Inc.” He allegedly lied to the bank that NC GOP, Inc. was a certified legal entity registered with the NC Secretary of State, and that he was the president of the organization. But no such organization existed.

Instead of sending the $50,000 check payable to “NCGOP” to the actual state Republican Party, he allegedly deposited it in his own NC GOP, Inc. account.

The same day Lewis wrote a $47,600 check from the NC GOP, Inc, account payable to Lewis Farms, his primary business. He also wrote a check for $2,050, payable to the landlord of his residence, according to court documents.

Two weeks later, Lewis allegedly used the same ruse — paying money from his campaign to his personal account NC GOP, Inc., while reporting it on his campaign finance reports as a contribution to the state Republican Party. This time, though, he used a cashier’s check, worth $15,000. That money went to yet a third bank account for Lewis Farms.

Later, Lewis actually made contributions to the state GOP for $50,000 and $15,000 from his personal accounts, which could have been an attempt to appear to comply with campaign finance law.

Lewis also allegedly failed to pay his federal taxes on farm income generated in 2018. His gross income that year was at least $84,200, court records say.

If convicted, Lewis could be forced to forfeit “property derived from proceeds traceable to the offense.” That would include a fine equivalent to the amount of his back taxes, but the there could be additional penalties.

His attorney filed a plea agreement today, but the document is not public.

 


Legislature

Veteran House leader who played a key role in GOP’s redistricting maps bows out of 2020 race

Representative David Lewis (R-Harnett) will withdraw from November’s General Election, ending an 18 years stint in the NC State House.

The Harnett County lawmaker, who was a chief architect of the Republican’s redistricting maps and a proponent of photo voter ID, released the following statement on his website Friday:

“Since 2003, I’ve had the honor and privilege of representing the people of Harnett County, and I’ve taken this great responsibility seriously, offering everything I have and everything I am in service, to improve the lives of my neighbors and our community. I’m proud of the growth both in our Great State and within our beloved County, and I know the future of our community is strong.”

“In this esteemed legislative body, I have learned from spirited debate while showing respect for my political adversaries by avoiding personal attacks. A few years ago, President George W. Bush stated, “too often we judge other groups by their worst examples, while judging ourselves by our best intentions.” I challenge each one of us to focus on debating the ideas while not seeking to personally destroy those with opposing ideology.”

“It has been one of my greatest honors to serve in the House, surpassed only by marrying my wife Michelle and being the father to our three beautiful children. I love my wife and kids and I recognize that their sacrifice has been measurably greater than my own, because they really didn’t have a say in when Dad was coming home. My service in the House has come with great personal sacrifice and loss of valuable time with my family, as well as my livelihood. I will never be able to truly know how many times my assistance with homework was missed, or how many ballgames, school award ceremonies, church events, family vacations, and all the once-in-a-lifetime moments that I have forgone while serving in the House.”

“The time has come to focus my energies in new directions, and to allow another capable leader to serve in this important role. As such, I have decided to not seek re-election. I remain steadfast in my commitment to the people of House District 53 and will fulfill the remainder of my term in service to our community.”

In this last session, Rep. Lewis chaired the House Rules Committee, the Redistricting Committee, and the House Select Committee of School Safety.

Environment, Legislature

House bill would ban sale, production of PFAS in North Carolina

(Illustration: EnviroScience Inc.)

Companies could no longer manufacture PFAS, also known as perfluorinated compounds, in North Carolina under a new proposal, House Bill 1109.

If enacted into law, the measure would also prohibit the export of the toxic compounds, “except for products specifically authorized or required to contain PFAS under federal law.”

The bill was introduced May 14; it has eight co-sponsors, all Democrats: Pricey Harrison, John Autry, Alison Dahle, Susan Fisher, Marcia Morey, Deb Butler, Zack Hawkins and Raymond Smith.

There are 5,000 types of PFAS. Most are used in, or byproducts of, the manufacture of dozens of waterproof and stain-resistant consumer goods, such as clothing, cookware, pizza boxes, microwave popcorn bags, and more.

Of the few types of PFAS that scientists have studied, all have been linked to various health problems in humans, including several cancers, thyroid disorders, low birth weight, high blood pressure during pregnancy, ulcerative colitis and high cholesterol.

The compounds are widespread in the environment, especially rivers, lakes groundwater and drinking water supplies. They are often referred to as “forever chemicals” because they take decades to degrade.

The bill would allow DEQ to assess civil penalties of $5,000 to $25,000 for the first offense, and $10,000 for subsequent offenses. The maximum penalty for one month is $200,000.

It also would appropriate $100,000 in one-time money for additional monitoring and enforcement.

Several of the same sponsors also introduced two additional PFAS-related measures:

  • HB 1108 would require any company that discharges PFAS into the waterways to disclose the types, amounts and concentrations in order to receive a permit from the NC Department of Environmental Quality.

The same information would be required of wastewater treatment plants, both public and private, that receive discharges from industry. Those plants would have to remove the PFAS before discharging or require the industrial source to do so.

Among the other provisions are requirements for DEQ to study PFAS in landfill leachate and in biosolids that are applied to land.

PFAS enter landfills when contaminated consumer goods are thrown away. Leachate is liquid from the garbage that is captured in tanks beneath the landfill.

Biosolids are generated from wastewater treatment plants and used to fertilize agricultural fields. However, when it rains runoff from those fields can send PFAS into the groundwater and surface water. From there, the compounds can enter the drinking water supply.

In addition to the $5 million to DEQ for water quality monitoring, the State Water Infrastructure Authority would receive $80,000,000 in one-time money to issue matching grants to water systems to build or improve their  drinking water treatment systems to “substantially reduce public exposure to detectable PFAS.”

  • HB 1110 would require two state agencies to study the various effects of the compounds on human health and wildlife. DEQ  would be required to create an inventory of direct and indirect discharges of PFAS into surface water, air, groundwater and soil.

The Office of Management and Budget would calculate costs to local and state governments, several of which have had to spend millions of dollars to upgrade their drinking water treatment systems to reduce PFAS levels; those expenses are then passed on to ratepayers.

The NC Policy Collaboratory would also be charged with studying the future costs of removing or reducing the contaminant loads.

The bill would appropriate $600,000 for the studies.

Higher Ed, Legislature, News

One year after UNC-Charlotte shooting, ads call out legislature for inaction on gun laws

One year after the campus shooting that killed two and injured four at UNC-Charlotte, gun safety advocates are launching a new online ad campaign to highlight the General Assembly’s failure to pass new gun laws.

“More than 1,300 North Carolinians have been shot and killed, and twice that wounded, in the year since gun violence shook UNC Charlotte to its core,” said Grace McClain, volunteer leader with the North Carolina chapter of Moms Demand Action, part of the national Everytown for Gun Safety organization. “The response from our lawmakers? Crickets. So with these new ads, we’re letting them know that their failure to act not only costs lives – it’ll cost them their seats, too.”

On Monday the Everytown for Gun Safety Action Fund launched a new digital video ad titled “A Year of Inaction” as part of a $250,000 campaign to push for stricter gun safety laws.

The ad will run on Facebook and is part of a $60 million effort to elect candidates who support stronger gun laws in November.

The ads will ask viewers to visit a site that allows them to sign on to a pledge to vote with gun safety in mind in November.

Most North Carolinians are already for stronger gun laws, the group said in a press release this week. It points to its poll, released in January, showing 79% of North Carolina voters in its survey support stronger gun laws. 

In the poll, 75% of respondents said they were less likely to vote for a candidate who supports allowing people convicted of domestic violence to own guns. Sixty percent also said they would be less likely to vote for a candidate  who opposes “red flag” laws that would allow police to confiscate weapons from those found by a judge to be an extreme danger to themselves or others. Nearly 70% said they were less likely to support a candidate who is against background checks for all gun sales.

Despite those numbers, new gun laws have gotten traction in the Republican dominated General Assembly.

Last year Democrats in the N.C. House again introduced new gun bills. Like all such bills they have introduced since the 2012 mass shooting at Sandy Hook Elementary School in Newtown, Conn., the bills didn’t even get a vote.

Legislature, News, public health

Can a pandemic push North Carolina to finally expand Medicaid? These House members hope so.

Seven House Democrats took part in a conference call Wednesday to urge lawmakers to pass House Bill 1040, Healthcare for Working North Carolinians.

On the day when North Carolina surpassed 10,000 COVID-19 cases, a group of House Democrats gathered by teleconference to make the case for Medicaid expansion.

Rep. Sydney Batch, a Wake County Democrat, told reporters that the newly filed Healthcare for Working North Carolinians Act (HB 1040) would help thousands of residents who are either uninsured or underinsured.

“Not only will this bill help frontline workers who have supported us through this crisis, it will also help many North Carolinians who have unfortunately lost their jobs because of this crisis and are now in the coverage gap,” explained Rep. Batch.

Rep. Sydney Batch

Batch estimated that Medicaid expansion would return $4.5 billion in federal tax money to North Carolina’s overwhelmed health care system, allowing state tax dollars to be used for economic recovery initiatives.

Mecklenburg County Rep. Christy Clark, a cancer survivor, believes the latest bill could provide health coverage to as many as 500,000 North Carolians who are working but can’t cover the cost of insurance.

“Those are the very people who are keeping the state running during this unprecedented pandemic,” explained Clark. “People deserve quality healthcare at a cost that will not break their bank or prevent them from seeking care at all.”

Twenty-seven percent of adults in North Carolina have unpaid medical debt, according to Clark.

Rep. James Gailliard

Rep. James Gailliard, a Nash County pastor, noted that expansion was especially critical for rural North Carolina where food deserts and a lack of broadband further compound negative health outcomes.

“What we have done in our unwillingness to give people access to healthcare is we have participated in creating a public health crisis. We see it playing out right in front of us with the pandemic.”

Click below to hear Rep. Gailliard discuss the impact expansion would have for his regional hospital:

Rep. Verla Insko (Orange County-D.) believes the issue of expansion is finding more support among voters as COVID-19 changes life around us, but she acknowledged that Senate Republicans will need to stand-up to that chamber’s leadership for the measure to ultimately pass.

A Cone Health Foundation report released last summer estimates Medicaid expansion would create 37,200 more jobs in North Carolina by 2022.

The legislation, filed on the opening day of the session, has been referred to the House Rules Committee.

Read HB 1040 here.