Lobbyist Don Beason identified as source of loan

Don Beason, the state's top ranked lobbyist whose clients include BellSouth, BB&T and IBM, was identified in state court today as the man who gave former House Speaker Jim Black a $500,000 loan.

Black and his lawyer have said that Beason, 68, of Raleigh, gave the loan to Black in 2000 to help him close a business deal involving an office building he owns in Charlotte. Beason wrote a personal check to Black; the terms were not in writing, said Black's attorney, Ken Bell. The business deal fell through, and Bell said Black repaid the loan about a month later.

The loan became public in court papers filed shortly before Black, 72, was sentenced in federal court earlier this month to five years and three months in prison for corruptly accepting things of value. Federal authorities and Bell had declined to identify the lobbyist.

State Board of Elections investigators discovered the loan about five months ago. In Black's campaign finance reports, they found he had reported loaning his campaign $500,000, when in fact the money had come from Beason.

Bell has said that Black's campaign treasurer mistakenly deposited the money in the campaign account.

The transaction has raised red flags with public interest groups, who say that it could have helped the lobbyist curry favor with Black. They had called upon prosecutors to identify the lobbyist.

At the time, Beason was representing video poker operators who won Black's protection in the legislature. Black had single-handedly prevented video poker from being banned by lawmakers until the 2006 session, when his clout was diminished by scandal.

In recent weeks, Beason has been hard to find at the legislature. On Friday, Beason made a rare appearance, and said he was too busy to talk to a reporter.

Though Beason has been a top aide to two Republican governors, he had a good relationship with Black, a Mecklenburg County Democrat. Black wrote an endorsement of Beason, which he used on his Web site to recruit clients.

Beason's clients had also spent heavily to help Black stay in power, through campaign donations and by underwriting House Democratic events.

The day Black won a record-tying fourth term as speaker, Beason picked up the tab for a dinner celebration in a private room at the Second Empire Restaurant in Raleigh. Black had Beason's credit card number and directed an aide to send it to the restaurant.