Feds issue subpoenas to NC environment officials

RALEIGH, N.C. -- Federal investigators want to know more about four coastal real estate developments by a pair of brothers with ties to former North Carolina Gov. Mike Easley and if anyone made payoffs to state regulators.

The Department of Environment and Natural Resources confirmed Friday that six current or former agency officials received subpoenas to appear next week before a federal grand jury meeting in Raleigh.

The News & Observer of Raleigh first reported on the subpoenas served this week, which seek state documents on four developments put together by businessmen Gary and Randy Allen. One development is Cannonsgate in Carteret County, where Easley and his wife bought a lot in 2005 while he was governor and documents show they accepted a $137,000 discount.

A grand jury has been examining for months the activities surrounding the former two-term governor, his wife and associates. No one has been charged with wrongdoing by federal authorities. Both state officials and private citizens have received subpoenas.

The U.S. Attorney's Office also wants information on how a golf club where Easley belonged got to pump millions of gallons of water from Jordan Lake during a drought in 2002. Leaders of the Old Chatham Golf Club had voted a year earlier to waive Easley's monthly membership dues.

Among those receiving the subpoenas this week were Robin Smith, assistant state secretary for environment, and Alan Klimek, the retired director of the Division of Water Quality.

Separately, the State Board of Elections referred an inquiry involving Easley's campaign finances to state prosecutors two weeks ago to determine whether crimes were committed. The board also ordered Easley's campaign to pay $100,000 in fines and expenses.

The new subpoenas ask for documents that would show if state officials received any remuneration from as many as 21 individuals or businesses, including Easley, the Allens and McQueen Campbell, once Easley's political ally who has said he piloted dozens of private flights for Easley.

The Allens gave no payments, gifts or favors to state officials associated with their projects, said Stephen Smith, a lawyer representing Gary Allen.

State environmental permits for each project were approved because "they were well engineered and well-designed," Smith said Friday.

Diana Kees, a spokeswoman for the Department of Environment and Natural Resources, said agency officials weren't aware of wrongdoing within the department and would cooperate with federal authorities. An Easley spokesman didn't immediately respond Friday to phone and e-mail messages seeking comment.

Gary Allen testified before the elections board Oct. 27 that a $50,000 check he wrote to the state Democratic Party in advance of the 2004 election had no relation to the eventual approval of a state permit he sought for a boat ramp at Oyster Harbour in Brunswick County. Oyster Harbour is another of the four developments identified in the subpoenas.

Other projects identified by Smith as Allen brothers projects about which federal prosecutors want more information are Summerhouse in Onslow County and Cutter Bay in Pamlico County.

Randy Allen was a Democratic contributor whom Easley appointed to the Wildlife Resources Commission.

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