KINSTON — Rep. Stephen LaRoque today defended his small business loan enterprise amid charges that it raised conflict of interest issues.

He called N.C. Policy Watch, which raised the issues, a 'liberal propaganda tabloid.'

A two-month N.C. Policy Watch investigation said he earned up to $195,000 for running two public charities funded with $8 million in federal dollars, and used the non-profit organizations to loan some of the public funds to his close associates and political allies.

About three dozen people attended the news conference held by LaRoque, a Kinston Republican who is in the House leadership.

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