@NCCapitol

@NCCapitol

Ex-lawmaker seeks dismissal of federal fraud charges

Posted April 26, 2013

Former state Rep. Stephen LaRoque, right, listens to defense attorney Joe Cheshire speak with reporters on Aug. 6, 2012, after LaRoque's first appearance in federal court on charges of misuse of funds and money laundering.

— Former Rep. Stephen LaRoque has filed a motion to dismiss federal charges of fraud and misappropriation of funds, arguing that the money in question belonged to him so he couldn't have stolen it and then lied about it.

LaRoque was indicted last July on eight counts of misusing federal funds and money laundering, and prosecutors later tacked on four counts of fraud.

The Kinston Republican administered a U.S. Department of Agriculture loan program for small-business development, but prosecutors say he directed the loan money to friends and family and might have used some for campaign expenses.

The fraud charges stem from allegedly lying on USDA documents and filing false tax returns.

In a motion to dismiss filed Monday, defense attorneys Joe Cheshire and Elliot Abrams argue that the boards of two nonprofits that received the USDA funds approved LaRoque's actions, so it was his money to spend as he saw fit.

"The government admits that the board approved the contracts with Mr. LaRoque and does not allege that he defrauded the board members. The contracts that the board approved made Mr. LaRoque the rightful owner of the property he is charged with wrongfully obtaining," the motion states.

LaRoque, who resigned his House seat under pressure after his indictment, is scheduled to go on trial May 20 in Greenville.

3 Comments

This blog post is closed for comments.

Oldest First
View all
  • miseem Apr 29, 2013

    I think that any funds he received were not without strings attached. He may have been given discretion on what he did, but any grant is going to have certain requirements on what it can be used for and the expected results of the funding. Seems like a publicity gimmick from the defense to make him look like the innocent party.

  • Rebelyell55 Apr 29, 2013

    Got caught with his hand in the cook jar, and thinks no one will notice. No one never said these polictican were very bright.

  • Terkel Apr 29, 2013

    Did he lie to the USDA or not? That's the first question. Second, if he used the money for campaign expenses that should be illegal, hands-down. Punish the "boards" of "nonprofits" (snicker) who approved it. Third, disband all USDA divisions except those necessary to assure the safety of the food supply, because they can't administer tax money well.