Kay Hagan, Thom Tillis face alleged ethics violations

Supporters of Sen. Kay Hagan and Republican challenger Thom Tillis are embroiled in a mudslinging fight as the two contenders in the North Carolina U.S. Senate race fend off alleged ethics violations.

Claude Pope, N.C. GOP chairman, sent a letter Monday to the senate ethics committee requesting an investigation of Hagan’s support for and actions following the passing of the 2009 stimulus bill.

Republicans say Hagan used her political position to help JDC Manufacturing, a company co-owned by Hagan’s husband, secure stimulus money.

“I think it should raise serious questions for anyone who is considering voting for Sen. Hagan,” said Will Allison, a N.C. GOP spokesman, in an email. “Taking taxpayer dollars from a law she voted for ... looks like the very definition of corruption.”

But Sadie Weiner, a Hagan spokeswoman, said the complaint was frivolous.

“The ethics committee hasn’t announced any investigation, Kay has not been notified that there is any investigation and the N.C. GOP is being intentionally misleading in this regard,” she said in an email.

In retaliation, Forward N.C. is filing a formal complaint with the State Ethics Commission against Tillis for supporting $1.4 million in stimulus tax credits for Aquesta Bank, in which he holds $100,000 of private stock.

Facts in Hagan’s case could raise eyebrows.

According to business reports released from 2001 to 2010 by the N.C. Department of the Secretary of State, JDC Manufacturing declared the nature of its business as “manufacture plastic parking lot blocks.” Then, according to a 2011 report, the company received about $400,000 of stimulus grants and credits and JDC restated its business as “real estate ownership and management.”

“She owes the people of North Carolina a full explanation,” Allison said.

Hagan’s public financial disclosure reports said she collected less than $200 from JDC Manufacturing in 2008. After receiving stimulus benefits, Hagan reported earning between $100,001 and $1,000,000.

The N.C. GOP said if Hagan did use her position to influence the flow of stimulus money, it could be a violation of the Senate Code of Official Conduct.

“Kay has been completely up front that she had absolutely no part in helping JDC apply for or receive these grants,” Weiner said.

Democrats are voicing concern over Tillis’ ethical conduct as N.C. Speaker of the House.

“It’s long past time the Speaker took questions on this matter and came clean about how Aquesta Bank and his personal bottom line benefited from his votes,” said Forward N.C. spokesman Ben Ray..

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