News & Observer | newsobserver.com | Video poker probe led to corruption inquiry

Published: Feb 13, 2007 12:30 AM
Modified: Feb 13, 2007 02:21 AM

Video poker probe led to corruption inquiry

 

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The federal government's long-running probe of video poker interests -- which has resulted in more than a dozen convictions since 2000 -- is dubbed "Operation Double Black Diamond."

That probe, which has made extensive use of an investigative grand jury, is the same one touching on the activities of former House Speaker Jim Black, according to a presentation made for lawyers late last month by Frank Whitney, the former U.S. attorney for the eastern part of the state.

Whitney is now a federal judge in Charlotte but headed the investigation through June.

The government has not outlined to the public the extent or the scope of its work, citing legal rules. Grand jury proceedings are not open to the public.

And in an interview Monday, Whitney was reluctant to discuss anything that hasn't already been in the public record, from which he assembled his presentation.

But a slide show that went with his talk includes a few morsels of insight.

Whitney's audience was lawyers who represent government officials. He was focused on educating them about why the state needed the new ethics law passed last year, he said in an interview.

In his talk and slide show, Whitney detailed the results of several recent probes of wrongdoing in government, including those that led to prison time for former U.S. Rep. Frank Ballance and former state Agriculture Commissioner Meg Scott Phipps.

Then he showed reporting by The News & Observer in 2005 on Black's former political director, Meredith Norris, and in 2006 on the activities of Black and video poker. The headlines: "Feds dig into lobbyist's dealings" and "Black, video poker on hot seat"

"Although not confirmed by the US Attorney's Office," says the slide that Whitney used in his presentation, "by Sept 2005 it is now obvious that Double Black Diamond is also a Public Corruption Investigation."

Another slide points out that "A Grand Jury Investigation Goes Where the Evidence Leads It..."

Under that heading, Whitney listed as examples the convictions of former Rep. Michael Decker and former state lottery commissioner Kevin Geddings.

Both men were tied to Black. Black has said he did nothing wrong but in recent days acknowledged that rumors are circulating about his future.

Whitney said in the interview that it is not unusual for an investigation opened for one purpose to change course.

"You go where it takes you," he said.

In his presentation, Whitney said the "Double Black Diamond" probe was delayed at one point because a video poker operator didn't cooperate as expected.

Whitney showed the lawyers an N&O report that outlined how one informant who wore a wire to capture wrongdoing had instead apparently tipped off those he would meet and steer them from making incriminating statements.

Whitney said his talk was aimed at getting lawyers who advise government officials to take notice.

"It was about the breadth of the state of the law," Whitney said. "And to advise them so they could educate their clients about not being fast and loose with the truth."

Jones co-sponsors Iraq bill

The Iraqi resolution that Congress will begin debating today has been pitched as coming from the Democratic leadership, but its sponsors are two Democrats and U.S. Rep. Walter Jones, a Republican from Farmville.

Jones has become known nationally for being one of the most outspoken conservatives against the war in Iraq. Now, he has his name on the resolution that Democratic leaders thought would garner the broadest amount of support.

The resolution makes two points: It offers support for troops serving bravely, and it expresses opposition to the addition of 21,000 troops that President Bush announced last month.

The statement is nonbinding, with no force of law.

U.S. Rep. Howard Coble of Greensboro, who opposes the troop buildup and will vote with the Democrats, figures about 20 or 25 other Republicans support the resolution.

Curliss can be reached at 829-4840 or acurliss@newsobserver.com.
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