Ex-senator accused of embezzling

Former state Sen. Hugh Webster has been indicted on a felony embezzlement charge, a spokeswoman with the state Attorney General's Office said Friday.

The Caswell County Republican also has been charged with a felony count of exploitation of an elder adult, Noelle Talley, the spokeswoman said. The State Bureau of Investigation conducted the inquiry, she said.

According to an affidavit in support of a search warrant signed by a financial crimes agent with the SBI, Webster's aunt withdrew $12,115 from a retirement account and gave it to her nephew after he told her he could get a higher interest at his Raleigh credit union, the Associated Press reported.

"She never received any interest or bank statements" after the IRA check was deposited, the affidavit said.

Webster contended the money was a gift from his aunt, which the aunt denied, the affidavit said.

Reached late Friday, Webster vehemently denied the accusations.

The indictment, he said, came as a surprise when he found out about it Thursday.

"I have absolutely, totally not embezzled anything," said Webster, who lives near Yanceyville.

Webster, 65, said the indictment stemmed from a financial dispute with the aunt.

"It will be very easy to discredit her," he said.

The former state senator said the charges were politically motivated.

"I was the only one who had the guts and the integrity to stand up and tell the truth in the legislature," Webster said.

"Anybody who doesn't think that's political must be a candidate to buy some real estate from me in Arizona -- oceanfront property."

Sen. Tony Rand, a Democrat from Fayetteville and the senate majority leader, said he heard about the indictment Thursday.

"It's always sad to hear about these things," Rand said Friday. "As I understand this, this has nothing to do with the legislative process; this is a personal matter."

Webster served in the state Senate from 1994 to 2006. In addition to his work as an accountant, Webster also says he's a tobacco farmer.

Webster was roundly defeated in his bid for Rep. Brad Miller's seat in Congress in this month's election. Miller, a Democrat from Wake County, won with about 65 percent of the vote to Webster's 35 percent.

Webster said he plans to surrender to law enforcement officers in Caswell County on Monday morning, but first will hold a news conference in Yanceyville at 8 a.m.

(Staff writer Anne Blythe and The Associated Press contributed to this report.)