Ruffin Poole, a longtime senior aide to former Gov. Mike Easley, corrupted his office by taking trips, liquor, money and other gifts from people he helped with state government action, a federal grand jury charged Thursday.
In a wide-ranging indictment, Poole was charged with 51 counts that include extortion, bribery, racketeering, fraud, money laundering and engaging in transactions in "criminally derived" property. Many of the charges in the indictment from the grand jury flow from Poole's interference in environmental permits, in some cases for projects in which he had invested.
Neither Poole, 37, of Raleigh, nor his lawyer could be reached for comment.
The indictment jolted state government, with officials from both political parties expressing dismay.
Gov. Bev Perdue, a Democrat, said the number was stunning.
"The people of North Carolina are simply tired of this," Perdue said. "It's just wrong for North Carolina."
Republicans pounced, saying the indictment highlights continuing problems in a power structure overseen by Democrats, who have controlled the governor's office since 1993 and the legislature for several years.
"No one who has followed this situation for the past several years should be surprised by today's indictment," state Republican Party Chairman Tom Fetzer said. "This is yet another dark day in the political history of North Carolina."
It is the first indictment to arise from a lengthy probe surrounding Easley, a Democrat who was governor from 2001 until last year. Easley was not mentioned by name in the indictment, and there is no evidence he was aware of any activities mentioned in it.
A lawyer for Easley said the former governor had "no knowledge of the conduct."
U.S. Attorney George E.B. Holding said in a statement that "public service should not be, and cannot be, an opportunity for improper personal gain by the employee, or by others relying on their friendship with that employee."
The probe, which continues, is being handled by the FBI and IRS, officials said.
Authorities late Thursday issued an arrest warrant for Poole, but no other information was available.
'A stream of benefits'
The indictment says that Poole took official action to benefit Wilmington developer Lanny Wilson and his associates while he "received a stream of benefits" from them. The indictment doesn't name Wilson, but it makes his identity clear.
Wilson, a major Democratic political fundraiser, resigned his position on the State Board of Transportation hours before the indictment was made public. Wilson was a cooperative witness at a state Board of Elections hearing in October into Easley's campaign. Poole refused to testify .
The benefits that Wilson and others are accused of providing for Poole included several trips to Costa Rica and a bachelor party trip to New Orleans; free tickets to music shows in Raleigh; liquor for Poole's 2005 wedding; a $5,000 engagement party and use of Wilson's home on exclusive Figure Eight Island.
One of the others who provided benefits was Doug Fox, former chairman of the state liquor commission.
Wilson included Poole on his annual golf trips to Costa Rica to "further strengthen his access to the Governor's Office," according to the indictment.
The indictment also claims that Poole had a stake in two coastal residential developments that Wilson was backing and that Poole made phone calls and took other actions to smooth the way for permits on those projects.
One was Cannonsgate, the neighborhood in Carteret County that has been in the news for months because Easley acquired a lot there at a deep discount, something that was not disclosed in public records.
The indictment says that Poole was allowed to invest $100,000 in the project after it was clear it would be a success and that he made a 30 percent profit on his money - $30,000 - in just under four months. His Cannonsgate investment was first discussed on the New Orleans trip, the indictment says.
The Summerhouse deal
In June 2006, Poole also invested $100,000 in an Onslow County project backed by Wilson called Summerhouse.
He was paid back various amounts over time, eventually clearing a $25,000 profit by May 2007, the indictment says.
Poole made the investments through a family-owned construction company and was paid by Wilson through the company, according to the indictment. However, records and checks cited in the indictment indicate that the investments were Poole's personally, leading to the 15 counts of money laundering.
Poole did not disclose the gifts or his financial stake in required state ethics forms, the indictment says.
The indictment accuses Poole of being involved in assuring that permits went through on several projects Wilson backed. When a potential problem cropped up for Cannonsgate, Poole wrote to the project's backers that he would "get to work on these issues."
At Summerhouse, when a boat dock and ramp problem developed, Poole communicated with Wilson that "the issue was resolved," according to the indictment.
Attempts to reach Wilson were unsuccessful.
Poole has not talked publicly about the investigation and fought efforts by the State Board of Elections to compel his testimony in a recent state hearing that examined fundraising activities of the Easley campaign.
Last month, Poole asserted his Fifth Amendment right not to incriminate himself before the board and lost his job at the McGuireWoods law and lobbying firm, where Easley also works.
Poole joined Easley's senior staff after the 2000 election.
Poole's titles under Easley in the governor's office were special counsel, executive counsel and legal counsel.
But the indictment says that Wilson and others viewed him as the "go to guy." The indictment says supporters referred to Poole as the "Little Governor."
Staff writer Sarah Ovaska contributed to this report.
