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.
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.