4:05 p.m. – Elections board Chairman Larry Leake says he needs to meet with attorneys from the Attorney General's Office for the rest of the afternoon. The hearing is in recess until Wednesday morning after a brief hearing about a possible runoff election for the Wake County school board.

3:40 p.m. – Hearing in recess for 15 minutes.

3:25 p.m. – Political consultant Mac McCorkle says he's known Easley since the late 1980s and managed some of his campaigns. He helped him stake out positions on issues in the 2000 gubernatorial campaign and helped to a lesser degree in 2004.

He says he wasn't involved in fundraising or campaign operations. He primarily worked on polling and with the media, and he also listened to Easley vent about his frustrations with the campaign.

McCorkle put some of campaign manager Jay Reiff's start-up expenses on his bill to the campaign. "I didn't advance any money to Jay," he said.

In 2007, the Democratic Party paid him for some of his work as a consultant to Easley.

3:20 p.m. – Allen tells board member Bill Peaslee that he gave $50,000 to the Democratic Party primarily because Wilson asked him to. He reiterates that it wasn't tied to the permit approval for his boat ramp.

He tells Jim Cooney, the lawyer for the Democratic Party, that he often gives to political parties in addition to candidates.

3:05 p.m. – Under questioning by board member Charles Winfree, Allen says he doesn't remember talking with Easley about his need for a permit for a boat dock at a coastal development. He says he doesn't recall whether his 2003 donation to the Democratic Party occurred near one of the times he met with Easley.

"To me, none of that was tied together," he said.

Wilson's ties to Easley lawyer Ruffin Poole didn't play a role in getting the dock approved for the project, Allen says.

3 p.m. – Developer Gary Allen, who used to live in Charlotte, says he gave $50,000 to the state Democratic Party in June 2003. He doesn't remember why he gave it.

"I gave to many candidates and political parties," he said.

He doesn't remember anyone with the Easley campaign or the party soliciting the donation. He says he "probably" gave the maximum allowable donation to the Easley campaign.

He said he gave the money to the Democratic Party with the assumption that "Easley and some others would benefit from it."

He also gave $50,000 to the state party in 2004, and the check had Lanny Wilson's name on it. Allen says he doesn't know why Wilson's name is on it, noting Wilson, a former business partner, often encouraged him to donate to Easley and the party.

2:50 p.m. – Under questioning by elections board Chairman Larry Leake, Hayden says he didn't really have a supervisor at the Easley campaign. Reiff and Horne would check in with him to see how things were going.

"I kept it right here," Hayden says, pointing to his head when asked about how he kept track of how much the campaign had raised for the coordinated campaign.

2:45 p.m. – "I don't recall" has become a popular response about how the Easley campaign handled its finances.

2:35 p.m. – Hayden reiterates to board member Bill Peaslee that no one was policing the donations to ensure they were legal. He says he wouldn't knowingly accept illegal donations.

He never set a budget, but he tried to keep expenses for fundraising events to keep as much of the money raised for the campaign as possible. He would make reports of all checks received and send them into Dave Horne, the campaign treasurer, in case any other documentation was needed.

Checks were sometimes sent back to contributors if they had already given the maximum allowed under state law, he says. He didn't ask donors to give money to other groups for the Easley campaign.

2:20 p.m. – Hayden says there were various plans for raising money during the course of the campaign. Plans would consist of determining how many events Easley would go to, or where and when to call for donations.

Under questioning by board member Charles Winfree, he says he doesn't recall ever flying on McQueen Campbell's plane. He knows Campbell sometimes stood in as a second pilot on flights Easley took.

"I don't recall ever knowing that he specifically provided (planes)," he said. "I knew that he was piloting flights the governor was on."

He says Reiff reviewed campaign finance laws – a code of conduct – with campaign workers, and Hayden told them to keep track of in-kind contributions.

"I was not the compliance director," he says about efforts to make sure donations were properly reported. "I don't think anybody had that specific title."

2:15 p.m. – Under questioning by elections board member Anita Earls, Hayden says he doesn't recall talking with Wilmington businessman Lanny Wilson about donating to the Democratic Party. He says he explained the coordinated campaign concept to Wilson while they talked about contributions, but he never told him money to the party could be directed back to the Easley campaign.

2:10 p.m. – Hayden says he doesn't recall any conversations with campaign officials about how to handle campaign flights on private planes.

"When I talked, I would talk to someone who knew specific campaign legalities," he said.

2 p.m. – Hayden says he would have discusses campaign fundraising strategy with several people, including Reiff.

He used contacts gained through South Carolina and national donors who live in North Carolina to begin building a base of donors for Easley.

Hayden didn't arrange air travel for Easley to fundraising events, but he asked Easley aide Cari Boyce to handle travel, whether it involved a plane or car.

Hayden says he would solicit donors for contributions to the Democratic Party and would hand checks to a party representative and indicate that the money was to pay off Easley's obligation to the coordinated campaign. He says he didn't use any special notations on the checks.

1:40 p.m. – Professional fundraiser Michael Hayden says he worked with the Easley campaign, starting in 2003. Campaign manager Jay Reiff brought him into the campaign "to effectively and persistently raise money within the law."

Hayden says he doesn't recall the amount of his retainer, and he also was allowed to live in Easley's private home in Raleigh for several months. He doesn't recall any needed repairs, but said the house "was not in pristine condition." He moved out of the house in late 2003.

He says he knows the state's campaign finance laws but didn't monitor funds as he raised them. "I didn't track all the donors to see who gave more than $4,000," he said.

Easley didn't care for fundraising, so Hayden didn't talk to him much about it. He says he doesn't know whether Easley met his $500,000 pledge to the Democratic Party's coordinated campaign effort.

Hayden has worked as a political fundraiser since 1996. He's also worked on gubernatorial campaigns in Oklahoma and South Carolina.

12:05 p.m. – Hearing in recess until 1:30 p.m.

12 p.m. – Under questioning by Easley attorney Tommy Hicks, Horne says he would have paid an invoice for repairs to Easley's home with campaign money because it was legal to do so at the time. Campaign laws have since changed to forbid the use of campaign funds for such personal expenses.

Easley disliked fundraising and campaigning, Horne said.

11:45 a.m. – Under questioning by Jim Cooney, the lawyer for the Democratic Party, Horne said the Easley campaign pledged to give $418,000 to the coordinated campaign in 2000. In 2004, the campaign pledged $500,000 to the coordinated effort.

Cooney breaks out the first visual aid of the hearing, setting up a chart showing that Easley's fundraising on behalf of the party was about double what his campaign received from the party. So, he says, any effort to fund the campaign through contributions to the party was "a miserable failure." Money from the party amounted to about 3 percent of the campaign's expenditures, he says.

Horne says it was a fair assessment to say the campaign couldn't use party funds to pay for more than a pizza without the approval of Falmlen.

11:30 a.m. – Horne says he doesn't recall the campaign trying to redirect contributions to the Democratic Party.

Under questioning by board member Winfree, Horne says he has known that McQueen Campbell provided flights for Easley since about 2000. He doesn't know how many were campaign-related.

"We reported all flights that we were aware of," he said. "I did not see my responsibility as treasurer to monitor the everyday activities of the campaign."

His memory is "hazy" about his own flight on Campbell's plane.

11:25 a.m. – Under questioning by board member Bill Peaslee, Horne says he relies on campaign workers and donors to accurately reflect cash and in-kind donations and that his job as campaign treasurer doesn't make him a watchdog.

"It's my job to accurately report all the contributions and expenditures that I'm aware of," he said.

Horne says Reiff's memo was inaccurate in saying that former Democratic Party director Scott Falmlen would allow the campaign to control money donated to the party.

"I would not have been concerned about a campaign manager's plan to raise money," he said, noting he reviewed each finance report before it was filed to ensure it was complete and accurate.

11:15 a.m. – Under questioning by board member Anita Earls, Horne says he never pushed for documentation on Campbell's invoices for flights because campaign law at the time allowed the use of campaign money for such flights. Easley's OK to pay the bill was enough verification that the invoice was appropriate, he said.

11:05 a.m. – The Easley campaign raised about $10 million during the 2000 election cycle and $8 million in the 2004 cycle, Horne says. Under questioning from elections board member Robert Cordle, Horne says individual fundraising goals are common, and plenty of donors are solicited by multiple campaigns and political parties.

Horne says no one in the Easley campaign controlled how money given to the Democratic Party was spent in the campaign, but some campaign officials must have suggested ways to spend it.

11 a.m. – Horne says he thinks the Democratic Party would have tracked whether the Easley campaign met its obligations to the coordinated campaign. He doesn't think the campaign tracked that information.

He doesn't recall any contributions that were refused by the campaign where the donors were redirected to the Democratic Governors Association or the state party.

Horne says he learned of repairs Campbell paid for at Easley's private home only early this year and didn't know in 2004-05 that the invoices for flights were to reimburse Campbell for the repairs.

10:45 a.m. – Winfree read a memo from former Easley campaign manager Jay Reiff in which he says the campaign needs to take advantage of a loophole in campaign finance laws allowing people to make unlimited contributions to political parties and parties making unlimited contributions to candidates.

"We can pay all of our expenses this way," Reiff wrote in the memo, adding that they could call it a "coordinated campaign add-on"

The coordinated campaign was a cooperative venture between Democratic candidates to pool resources and get more of them elected.

Reiff said donors needed reassurance that contributions to the Democratic Party would benefit Easley and that they would get credit for it.

Horne says he doesn't remember any discussion about Reiff's plan, but he does remember former party official Scott Falmlen telling him that the party would decide how to spend money donated to the party.

10:40 a.m. – Horne says he doesn't know anything about a special account within the state Democratic Party that might have been linked to the Easley campaign.

Under questioning from elections board member Charles Winfree, Horne says he never questioned why McQueen Campbell had never sent any flight invoices to the campaign until late and 2005. He also questioned whether there was documentation to support the campaign paying the bills.

"I think it was everyone's responsibility" to keep track of in-kind contributions, Horne says. "I'm not the designated compliance officer."

10:25 a.m. – Horne says he was unaware that Charlotte developer Gary Allen made a $50,000 contribution to the state Democratic Party.

He doesn't recall any agreement between him, Easley and fundraiser Hayden about the tactics they planned to use to generate money for the campaign.

"My experience with Mr. Hayden was that he was both persistent and professional in the execution of his duties," Horne said.

There were discussions about fundraising quotas, or goals, by individuals, he says.

10:15 a.m. – Horne wrote a memo advising campaign workers on how to handle cash donations and recommended going through the Democratic Governors Association for "controversial contributions."

John Wallace served as an attorney for the Easley campaign, but Horne says he was unaware that Wallace sought an opinion from the State Board of Elections about how to handle flights on private planes as in-kind contributions.

10 a.m. – Horne says he was unaware that Campbell or others were soliciting donations from people above the legal $4,000 limit on campaign contributions to a single candidate from individuals.

He says he stopped being campaign treasurer in 2006. State law prevents registered lobbyists like him from holding positions with political campaigns.

In 2003, Horne says he and Michael Hayden advised the campaign on raising money. A lot of others helped out with fundraising activities, he says. Hayden was a professional fundraiser, and he developed and carried out the plan to finance Easley's 2004 campaign, Horne says. Others likely helped shape the plan, he says.

9:55 a.m. – Campbell submitted two invoices to the campaign in December 2004 and June 2005 for flights provided to Easley. Horne says the first one didn't strike him as unusual since there was a lot of campaign activity around the time of the 2004 election. The June 2005 invoice was brought to Horne's attention by his assistant, and he asked her to get more documentation since the bill for flights came so far after campaign activities. After Easley ordered that the invoice be paid without documentation, Horne says the campaign paid the bill.

Easley might have called Campbell "the most honest guy he knew," Horne said.

9:50 a.m. – Horne says former Democratic Party official Scott Falmlen decided where the party put its money, and he didn't coordinate with the party how money flowed from the party to the campaign.

He says he asked Sanford businessman Buddy Keller to bill the campaign for any flights he provided to Easley, but he never asked Campbell for any invoices. The only reason he asked Keller for the bills, he says, was that he personally arranged the flights for Easley on Keller's private plane.

9:35 a.m. – Former Easley campaign treasurer Dave Horne says much of his work was serving as a "marriage counselor" to ease conflicts between the governor and his campaign staff. He says he reviewed campaign finance reports to ensure they were accurate and filed on time. The campaign often received checks that needed further documentation before they could be accepted, he says.

Horne says he knew McQueen Campbell was an Easley supporter, but he says he didn't track the governor's travels with Campbell. He recalls flying on Campbell's plane with Easley in the 1990s.

The campaign was responsible for reporting all cash and in-kind contributions, but Horne isn't aware of any system to track in-kind contributions. Campaign staffers or donors would notify him of any such donations, he says.

"I don't recall writing any plans for campaign finance," he says.

9 a.m. – As the State Board of Elections prepares for the second day of its campaign finance hearing for former Gov. Mike Easley, officials will be hard-pressed to top Monday's fast and furious action.

The opening day was littered with bombshells – and the resulting collateral damage – from McQueen Campbell's testimony about $87,000 in unbilled flights on his private plane and home repairs he did for Easley that were then billed to the campaign as flight expenses to testimony from two Wilmington businessmen that they wrote checks to the state Democratic Party with the understanding that the money would be funneled to the Easley campaign.

No word yet on who might be called as a witness today. WRAL.com will start live coverage of the hearing at 9:30 a.m. As always, feel free to use the comment section below to send in questions for WRAL News anchor David Crabtree.