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Former state Rep. Stephen LaRoque will find out his fate this summer , with his sentencing on a criminal charge of stealing federal funds now pushed back to July.

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Stephen LaRoque

LaRoque, a Kinston Republican and former co-chair of the powerful House Rules committee, plead guilty in January in front of Senior U.S. District Court Judge Malcolm Howard to a charge of stealing $150,000 from federally-funded economic development groups he ran.

The other 11 charges he faced were dismissed as a condition of his plea agreement. He also agreed to repay $300,000 that prosecutors contend he stole from the non-profit he founded, East Carolina Development Company.

He was supposed to be sentenced on May 12, but the sentencing has been pushed back to the week of July 7. In motions filed in court, his attorney said LaRoque needed more time to provide financial information to the federal probation officials writing up the pre-sentencing report that Howard will use to decide LaRoque’s sentence.

LaRoque faces up to 10 years in a federal prison, as well as a fine of $250,000, on top of $300,000 he agreed to pay in restitution as a condition of his plea agreement. Read More

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Former state lawmaker Stephen LaRoque will get another chance to convince an Eastern North Carolina jury he did not steal $300,000 from a federally-funded economic development group he ran.

Federal agents believe he used the money for personal extravagances like replica Faberge decorative eggs and an ice skating rink.

LaRoque, a Kinston Republican, was convicted in June on a dozen theft and money laundering charges fraud  related to the accusations, but Greenville television station WNCT reported that Senior U.S. District Court Judge Malcolm Howard ruled in court today that LaRoque could have a new trial.

Howard allowed for a new trial after a juror admitted conducting Internet research on IRS tax rules during the course of last year’s criminal trial, a violation of court rules that require jurors to only consider evidence heard in a courtroom.

No trial date has been set.

WNCT
LaRoque has maintained he committed no crimes, and told jurors when he testified in last spring’s trial that he did not keep detailed business records and that all the money he was accused of stealing was owed to him.

Howard will also hold another hearing in LaRoque’s case next Tuesday, and will decide whether to approve the former lawmaker’s request to hire  Greenville attorney Keith Williams after a “fundamental disagreement” emerged between LaRoque and Raleigh criminal defense attorney Joe Cheshire about how to proceed in the case.

LaRoque is also looking to lift a hold by federal authorities on property he inherited in order to pay legal bills.

From the late 1990s until his 2012 indictment, LaRoque ran both East Carolina Development Company and Piedmont Development Company, two groups funded as part of a U.S. Department of Agriculture program that gives business loans to struggling small businesses in impoverished rural areas.

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Both federal prosecutors and the attorney for former state Rep. Stephen LaRoque are asking to push back an October trial date on federal theft charges to February of next year.

In a joint motion filed on Thursday, assistant U.S. Attorney Dennis Duffy and Raleigh defense attorney Joe Cheshire cited the complexity of the charges filed against LaRoque in asking U.S Senior District Court Judge Malcolm Howard for the delay.

“If this case were ultimately to proceed to trial, the parties would need to present a significant amount of financial evidence and a relatively large number of witnesses,” Duffy wrote in the motion. “The parties intend to engage in a significant amount of discussions to reach stipulations and agree on the admissibility of summary exhibits in order to streamline the presentation of each side’s evidence.”

LaRoque, 49, of Kinston, was indicted by a Raleigh-based federal grand jury in July and

LaRoque

charged with four counts of stealing from a federally-funded program and four additional counts of conducting financial transactions with the money.

He faces up to 10 years in prison on each count.

LaRoque, who resigned from office following the indictment, has denied any wrongdoing in his management of East Carolina Development Company and Piedmont Development Company, the two small non-profits LaRoque ran.

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