Local News

Prosecutors: Nothing Illegal In MCNC Stock Deal

Posted July 20, 2001 6:08 a.m. EDT

— Prosecutors say there was nothing illegal in a stock deal that created millions of dollars in profit for two officials at MCNC.

The agency, formerly called the Microelectronics Center of North Carolina, spun off a company that later was sold, making $50,000 in stock worth four million dollars.

Two officials each bought $50,000 worth of stock in the new company in 1999 and collected their large profit months later when the company was sold.

Legislators, state officials and MCNC board members questioned whether the deal was right and whether the profits came at the expense of state taxpayers who had paid to create the MCNC.

Willoughby, in an interview, said that the minutes from the MCNC board meetings made it clear that Smith and Kress were going to buy their Cronos stock from MCNC's holdings.

MCNC has a board meeting Monday to discuss the results of an internal probe.