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Today’s the day for former state Rep. Stephen LaRoque to report to prison.

LaRoque, 51, a former high-ranking Republican in the state legislature from Kinston, was sentenced to two years in federal prison in July, after pleading guilty to criminal charge in connection with the theft of $300,000 from a federally-funded non-profit. He is expected to serve his term at a federal prison in Butner.

LaRoque

LaRoque

In the days prior to today’s prison report-in date, LaRoque issued a five-page statement to select media (N.C. Policy Watch not among them) stating that he had been targeted as part of a “witchhunt” in retaliation for his political views and his calling Rev. William Barber of the state NAACP a racist.

He accused the chief prosecutor and IRS agent who conducted the criminal probe of misconduct. He also accused N.C. Policy Watch of unfairly attacking him when a 2011 investigation into his management of the non-profits was published.

(We deny that accusation, and stand by the reporting that has been done.)

From the full text of LaRoque’s statement, published by the Kinston Free Press:

During my last term in the N.C. House in 2011, I received a ranting racist email from William Barber, President of the N.C. NAACP. I replied to the email asking that they discontinue sending me any email from a racist like William Barber. This is the same William Barber, who in 2014 in another racist rant, referred to South Carolina U.S. Senator Tim Scott as a “Ventriloquist’s Dummy.” Shortly after my comments about William Barber, I was smeared by N.C. Policy Watch, an offshoot of the partisan left-wing organization known as the N.C. Justice Center whose Board of Directors included William Barber. This organization colluded to smear me, along with attorneys John Marshall and John Archie of the Kinston law firm of White & Allen, who were representing my political opponent from the previous year’s election.

I believe my actions in advocating for my home town’s non-partisan elections and calling out William Barber as the racist he is was why I was targeted by the DOJ.

Federal prosecutors presented evidence that LaRoque used the federal-sourced funds from two economic development funds he ran to help buy himself cars, a Greenville ice skating rink and jewelry and replica Faberge eggs for his wife.

The federal investigation was opened after a 2011 investigative report was published by N.C. Policy Watch that pointed out LaRoque’s excessive salaries for managing the small non-profits, which were governed for years by a board made of his immediate relatives, and his loaning of money to close associates and political allies. The U.S. Department of Agriculture, which provided the funds for the non-profit business lending groups, provided scant oversight of LaRoque’s dealings for several years.

Both federal and IRS rules governing non-profits have strict rules about how the money could be used, and directors of non-profits are specifically prohibited from using their non-profits for personal benefits.

 

 

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LaRoque-PCUpdate: 3:22 p.m.,The U.S. Marshals Office released a statement indicating LaRoque has to report to prison by next Tuesday.

Stephen LaRoque has a bit more time before he needs to report to prison.

LaRoque, a former Republican state representative from Kinston, was supposed to head to prison within a month of his July 8 sentencing.

But it appears he’s been given an extension.

The U.S. Marshals Service and U.S. Attorney’s Office in Raleigh both confirmed the extension Wednesday, but could not divulge details about why the extension was granted and for how long it will last.

The federal Bureau of Prison’s offender lookup lists LaRoque, 51, as “not in BOP custody.”

Update: On Wednesday afternoon, the U.S. Marshal’s Service issued a statement saying LaRoque will needs to report into prison by next Tuesday, Aug. 18.

From U.S. Marshal Scott Parker:

The U.S. Marshals Service has notified Stephen LaRoque to self-surrender to the Bureau of Prisons on August 18, 2015. We will not disclose his designated Bureau of Prison location. The BOP Inmate Locator is updated daily and should show his location within 24 hours of his surrender. No other information will be released by the U.S. Marshals Service pertaining to this individual.

U.S. Senior District Court Judge Malcolm Howard Jr. had sentenced LaRoque to two years in prison for stealing $300,000 from a federally-funded non-profit he ran. The federal investigation into LaRoque, who once was a powerful member of the House Republican’s leadership team, stemmed from a 2011 N.C. Policy Watch investigation into LaRoque’s management of the economic development non-profit.

At the July sentencing, Howard told LaRoque he could wait to report to prison when a bed was ready in the federal prison system, which can take a month or so. Howard also said in July that he wouldn’t extend that deadline.

The judge also granted an order since LaRoque’s sentencing that permits LaRoque to serve his two-year sentence at the federal prison in Butner, allowing his wife who has medical issues to travel to see him for visits. The Butner facilities include a medical center, as well as low and medium-security prisons.

Another tarnished North Carolina politician, former House Speaker Jim Black, spent his prison term in Butner and Bernie Madoff, the New York financier who ran an elaborate Ponzi scheme, is a current inmate at Butner’s medium-security facility.

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Stephen LaRoque will find out his fate tomorrow, as a federal judge decides whether he should spend time in prison for stealing  $300,000 from a federally-funded non-profit.

LaRoque, a former Republican state representative from Kinston who served in a leadership position, plead guilty earlier this year to the theft, shortly before a second trial was expected to start on criminal charges that he used two economic development non-profits he ran to fund a lavish personal lifestyle.

LaRoque-PCCourt testimony for this first trial, in which convictions were thrown out because of juror misconduct, showed that LaRoque transferred money to and from the bank accounts of the East Carolina Development Company to pay for things like cars, replica Faberge eggs for his wife, a Greenville ice skating rink and a Zamboni ice resurfacer.

LaRoque had denied any criminal wrongdoing at the trial. Instead, he said he was owed the money as part of his salary from the non-profit run by a board made up for several years of himself, his wife and brother.

The non-profit group was funded with millions in U.S. Department of Agriculture funding, as part of an anti-poverty rural lending program intended to offer loans to small businesses in rural area unable to obtain financial backing on their own.

The sentencing hearing will begin at 9 a.m. at the federal courthouse in Greenville, in front of U.S. Senior District Court Judge Malcolm Howard.

LaRoque, who was indicted on federal charges in 2012, following a 2011 N.C. Policy Watch investigation, agreed to pay back $300,000 in restitution in exchange for his guilty plea.

He faces a range of 2 years to 30 months in prison though Howard, the federal judge, could also opt to sentence LaRoque to probation, the punishment that LaRoque and his attorney are asking for.

“Stephen LaRoque is a broken man,” wrote Keith Williams, a Greenville defense attorney, in a memorandum asking for a probationary sentence. “After years of criminal prosecution, his political career is over, his financial standing has shriveled, and he and his wife face serious health issues as they advance in age.”

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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.

LaRoque-PC

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

News

Stephen LaRoque, the former state representative accused of stealing $300,000 from federally-funded non-profits he ran, entered into a plea deal Monday.

LaRoque-PC

Former state Rep. Stephen LaRoque in 2011.

LaRoque, a Kinston Republican, plead guilty to one count of theft of $150,000 from a program receiving federal funds. The remaining 11 counts he faced will be dismissed, according to the court docket.

LaRoque also agreed to pay back $300,000 in restitution to the non-profit he once led, the East Carolina Development Corporation, according to a news release from the U.S. Attorney’s Office for the Eastern District of North Carolina.

The plea was offered Monday at the federal courthouse in Greenville. No prior announcement of the hearing was made on the docket for LaRoque’s case.

LaRoque, a co-chair of the powerful House Rules Committee, resigned from the legislature in July of 2012, shortly after he was indicted on the federal charges.

His sentencing will be on May 12, at the federal courthouse in Greenville before Senior U.S. District Court Judge Malcolm Howard.

The charge LaRoque plead guilty to holds a maximum punishment of up to 10 years in prison. He could also be ordered to pay a fine of up to $250,000, according to a spokesman for the U.S. Attorney’s Office.

LaRoque had been scheduled to go to trial next week, after convictions a jury handed down in a 2013 trial were set aside because of juror misconduct.

The federal investigation into LaRoque began shortly after a 2011 N.C. Policy Watch investigation that found improprieties in his management of two economic development non-profits that received millions through a U.S. Department of Agriculture rural lending program. The non-profit’s board of directors, which approved generous pay packages for LaRoque, consisted of himself, his wife and brother for several years.

His indictment on federal charges accused him of taking more than $300,000 from the non-profit to buy, amongst other things, a Greenville ice skating rink, replica Faberge eggs, jewelry and cars for his personal use.

Up until Monday, LaRoque had maintained he was innocent of criminal wrongdoing, and that the money he was accused of stealing was owed to him.

Shortly after his indictment, he said he wanted to seek revenge and “make heads roll” at USDA if he managed to get a political appointment heading the state office of the agency he was accused of stealing from.

This post has been changed from the original to correct the maximum fine LaRoque could face, up to $250,000. The post may be updated as further information about Monday’s plea deal is made available.