Black sentenced, fined $1 million

RALEIGH -- Former state House Speaker Jim Black's fall from grace became complete today when he was sentenced to eight to ten months in prison on state corruption charges, to be served at the same time as his federal sentence.

Black could face more prison time if he fails to pay a $1 million fine in the next five months.

"I am going to give him the opportunity to pay his debt to North Carolina by December 10," Wake County Superior Court judge Donald Stephens said as he imposed the sentence.

If Black fails to pay the fine, he faces between 19 and 23 months of additional prison time.

Stephens also ordered Black to make restitution to the state Board of Elections in the amount of $54,300.35.

Stephens said he had to decide if Black's sentence should run concurrently to the five-year sentence Black will soon start in federal prison.

"The federal government is not the victim of these crimes," Stephens said. "The citizens of North Carolina — each one of them — are the victims of these crimes."

Black previously pleaded guilty to state charges of bribery and obstruction of justice.

The obstruction charge stemmed from Black's failure to report receiving cash donations from chiropractors. The bribery charge related to $50,000 in cash and checks he gave to former state Rep. Michael Decker of Forsyth County following the 2002 elections. Decker, then a Republican, switched parties to help keep Black, a Democrat from Mecklenburg County, in the speaker's office.

Black declined to address Stephens before sentencing because he testified earlier today.

Willoughby called Black to the witness stand and questioned him closely about $500,000 he received in June 2000 from lobbyist Don Beason.

It was the first time Beason was publicly identified as the source of the money. Beason's clients include BellSouth, BB&T and IBM. He also represented video poker operators whose interests Black protected for years.

Black said the money from Beason was a loan to help close a business deal involving an office building Black owned in Charlotte. He said he did not remember whether he agreed to pay interest on the loan.

Willoughby pressed Black to admit that the transaction was a sham to hide an illegal campaign donation. But Black denied that, saying he accepted the money from Beason because it was simpler than getting a bank loan.

"You and I know there all kinds of shenanigans that go on in money and politics," Black told Willoughby at one point.

Beason wrote a personal check, Black testified. He said he gave the check to an assistant in Charlotte, who mistakenly deposited it in his campaign account.

Black said the money was withdrawn from the account and repaid as soon as the error was discovered. Then Beason wrote a second check to be deposited in Black's personal account.

The loan became public in court papers filed shortly before Black was sentenced in federal court.

At the time, federal authorities declined to identify the lobbyist.

Beason could not be reached for comment but released a statement this evening, saying, "It is true that I made a loan to Dr. Black seven years ago. In spring 2007, I provided testimony about this matter to a federal grand jury in Wake County. I recognize that making the loan was a serious error in judgment and I deeply regret it. I apologize to my clients, to my fellow lobbyists, to members of the General Assembly and most of all to the citizens of North Carolina. I am truly sorry."

As for the state bribery charge, Black insisted he had not set out to bribe Decker. He noted that he had entered an "Alford plea," which did not require him to admit that he was in fact guilty of a crime.

He acknowledged meeting with Decker and state Rep. Steve Woods in the IHOP in Salisbury. But he said he told Decker, "I know your vote's not for sale, and I'm not into buying votes."

He gave Decker $10,000 cash to help improve Decker's living conditions, Black said. Decker "had a very, very bad reputation for living in a van that was not fit to live in," Black said.

Decker's vote allowed Black to stay in the speaker's office in the divided state House. Black said Decker switched parties because he was angry at his fellow Republicans who had backed out of their promises to vote for Decker for speaker pro tem.

At one point during Black's testimony, Willoughby asked the former speaker whether he had been embarrassed to admit wrongdoing to the lobbyists and others from whom he sought donations for his legal expenses.

"I'm embarrassed and have been humiliated to death, and I don't know what more I can say to that," Black said. "Everybody knows my life has been pretty much ruined unless I can take the rest of my life and turn it around and make it something useful, which I certainly intend to do."