Stephen LaRoque could go from the state House to the jail house.
The former member of the state House of Representatives begins his trial on federal corruption charges today in Greenville. A grand jury indicted LaRoque in July 2012 on eight counts of embezzlement and money laundering. Prosecutors added an additional four counts of fraud.
His attorneys filed a motion in April asking for the dismissal of most of the indictment, indicating he was entitled to the money he received, and if he gave himself an excessive salary, that should be a civil matter.
The motion also knocked N.C. Policy Watch, calling it “Democratic-leaning,” and questioning the motives of its reporters. N.C. Policy Watch’s investigation and stories on LaRoque may have led to the federal investigation, and it is a project of the progressive N.C. Justice Center.
In a story about a LaRoque defense strategy, N.C. Policy Watch’s Sarah Ovaska wrote that federal prosecutors believe LaRoque actively tried to cover up the alleged theft.
“In January 2009, the defendant stole $300,000 from two federally-funded non-profits for whom he served as executive director,” Assistant U.S. Attorney Dennis Duffy wrote in a motion. “In order to conceal his theft, the defendant chose to extract the fruits of his crime under the guise of loans from the non-profit to his private company.”
A call to LaRoque defense attorney Joe Cheshire Friday was not returned as of press time. The Free Press was told Cheshire was in a trial preparation meeting at the time of the call.
After LaRoque’s first appearance in court in August 2012, Cheshire spoke to the assembled media.
“Rep. LaRoque looks forward to challenging these allegations, and believes that when he does, that the public will see that the worst he did was good work, and it was not work that was illegal,” Cheshire said.
He added, “Rep. LaRoque believes that he earned the money properly that he got, and that he loaned money properly.”
Wes Wolfe can be reached at 252-559-1075 or wes.wolfe@kinston.com. Follow him on Twitter @WolfeReports.