Local Politics

State rep., former business associate spar in court

Posted January 11, 2010
Updated January 13, 2010

Map Marker  Find News Near Me

— Former business partners in Johnston County will face off in state and federal court to determine who is to blame for the failure of an auto dealership.

Security Auto Sales, run by Michael Barefoot, contracted with a financing corporation managed by State Rep. Leo Daughtry.

After the dealership went under, the two men filed suit against each other, disputing the reason for the company's demise.

Daughtry blames Barefoot's poor management for the failure; Barefoot says Daughtry's firm skimmed money off vehicle financing deals and filed fraudulent title claims with the state Division of Motor Vehicles.

Barefoot alleges that the false claims led the DMV to close his dealership in 2007, and Daughtry and other executives had his bank accounts frozen.

Daughtry on Monday denied any wrongdoing.

No criminal charges have been filed in the dispute. A state lawsuit is expected to start this week, a federal racketeering lawsuit is also pending.


This story is closed for comments.

Oldest First
View all
  • fatcat11 Jan 12, 2010

    Security Credit is a good company..very fair and understanding lenders.

    Mr.Barefoot ran a very shady operation in Benson..

  • farm Jan 12, 2010

    protestthis, with these details you blame the republicans? Come on, the guy filing the suit is a used car salesman.

  • lil157 Jan 12, 2010

    What! We have dishonest State Officials!!!!!Why I am soooo shocked!

  • flipper59 Jan 12, 2010

    I meant SC, not SS

  • flipper59 Jan 12, 2010

    I've dealt with SS (Cathy & Kay) for years, easy money to be loaned when you need it. They have helped me when I needed some un-expected cash. Don't know about the used car lot though. Never dealt with them.

  • ginaosbo Jan 12, 2010

    Nawwwwww! Not HERE in Noth Calina!
    That kinda thing just don't happen here!

    NO, WAIT A SEC............................

  • protestthis Jan 12, 2010

    oh my - A Republican scandal - has the world come to an end?

  • gcmann Jan 11, 2010

    Don't know about you, but I am getting very weary due to reading about all this alleged corruption regarding our upstanding elected officials.
    How are these fine people to make a decent living without occasionally bending a rule or two here and there ? They have earned that right. Especially since they made the rules.

    He deserves to be re-elected, as he most likely will.

  • time4real Jan 11, 2010

    Daughtry, I thought they were sangers, not car dudes.

  • superman Jan 11, 2010

    A great defense is always shifting the blame to someone else.