News & Observer | newsobserver.com | Black pleads guilty to corruption charge

Published: Feb 15, 2007 11:40 AM
Modified: Feb 15, 2007 05:00 PM

Black pleads guilty to corruption charge

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Video: Black's attorney speaks to media



Jim Black's attorney Ken Bell talks with the media outside the federal courthouse on Feb. 15, 2007 after Black admitted to accepting cash payments.
Video: Black arrives at courthouse



Former House Speaker Jim Black arrives at the federal courthouse in Raleigh on Feb. 15, 2007.
Audio: Black's resignation letter


The clerk reads former Speaker Jim Black's letter of resignation to the House.


New House Speaker Joe Hackney at a news conference.

Rep. Linda Coleman, D-Wake, discusses Black's departure.

Jim Black's resignation letter

Dear Mr. Speaker,

It has been an honor and privilege to serve in the N.C. House of Representatives and represent the people of Mecklenburg County during the last 25 years.

I am extremely proud of the many accomplishments of the House during the last eight years while I served as Speaker, which is only the beginning of the progress that can be made in the years to come under the esteemed leadership of Speaker Joe Hackney.

It was important for me to help ensure a smooth transition during the last several months, which has occurred. Now it is time for me to move forward with my life and attend to the health and welfare of my family.

With both sadness and anticipation, I hereby resign from the House of Representatives on February 14, 2007.

My warmest personal regards.

Sincerely,

James B. Black

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Former four-term House Speaker Jim Black admitted in federal court today to accepting approximately $25,000 in cash payments from chiropractors while pushing legislation that would benefit them.

Black pleaded guilty to one count of corruptly accepting something of value — a charge that carries a maximum penalty of 10 years in prison.

Prosecutors detailed that between 2000 and 2005, Black accepted $25,000 in cash from chiropractors. The chiropractors involved were not named Thursday, but prosecutors said Black received cash from individual chiropractors during meetings in Charlotte and Concord. On more than one occasion, prosecutors said, Black met with chiropractors in restaurant bathrooms to accept payments.

Prosecutors said Black converted all the money to his personal use.

“Black intended to be rewarded in connection with the business of state government in which he participated,” according to documents provided by prosecutors.

Prosecutors said during the time period in question, chiropractors had an interest in spinal safety laws, legislation affecting the amount of co-payments insurers could require patients to pay chiropractors and legislation requiring that insurers’ review of chiropractic treatment be performed by a chiropractor.

Prosecutors said that on Aug. 16, 2006 some of the chiropractors were summoned to testify before a federal grand jury investigating Black. Prosecutors said that Black visited with at least one of the chiropractors the day before and suggested a story explaining that the cash payments were for Black’s expenses.

Black is scheduled to be sentenced May 14. As part of his plea agreement, Black is expected to cooperate with federal investigators.

Federal Judge James C. Dever III accepted the plea agreement.

After prosecutors outlined the basis for the charge against Black, the judge asked the former speaker if he was guilty.

Yes, Black replied.

Black did not talk to reporters after the hearing. His attorney, Ken Bell, credited Black for his guilty plea.

“There are too few people who will step up and take responsibility for his actions like he did today,” Bell said.

Bell said he did not know what Black did with the money.

“That money meant nothing to him personally,” Bell said. “But it is a crime.”

Bell also said the Black had committed no other offenses.

“Let me say today that he has pled guilty to the only criminal offense he’s committed,” Bell said.

According to documents provided by prosecutors, Black approached two chiropractors between 2000 and 2002 and informed them that cash payments would be more helpful than campaign contributions made by check. Prosecutors said the two chiropractors agreed to provide Black with cash and later recruited a third chiropractor to join them.

Prosecutors detailed the following specific meetings between Black and chiropractors:

- February 2002 - The chiropractors met Black in a private dining club in Charlotte and delivered $8,000 in cash.

- December 2002 - The chiropractors met Black in a private dining club in Charlotte and delivered about $10,000 in cash.

- February 2004 - Fifteen chiropractors held a fundraiser at a Concord restaurant. During the event, two of the chiropractors met Black in a bathroom to give him at least $4,000 in cash. At the same event, a third chiropractor gave Black a check for $4,000, made payable to Black. Black later deposited it into his personal account.

- December 2005 - At a fundraiser at a Charlotte restaurant, a chiropractor met Black in a bathroom to deliver $3,000. When a restaurant employee entered the bathroom, Black and the chiropractor stepped outside the bathroom and completed the transaction. Prosecutors said Black told the chiropractor, “This is just between me and you. Don’t you ever tell anybody about this.”

Black, a Mecklenburg County Democrat, resigned his seat in the House on Wednesday. He was beginning his 11th term.

In December, Black announced that he would not seek another term as speaker after months of focus on his personal and political activities. The decision ended a record-tying four terms as one of the state’s most influential leaders.

Black had been the subject of intense focus amid multiple disclosures over the past two years, mostly related to raising money for Decker; the activities of his former political director who was also a lobbyist; his involvement with the state lottery; and the creation of state jobs.

Five other people connected to Black have been convicted of crimes as part of the federal and state investigations.

Staff writer J. Andrew Curliss can be reached at (919)829-4840 or acurliss@newsobserver.com.
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