GREENVILLE — In the prosecution’s fifth day, it turned its attention to the Faberge eggs and the ice rink.
Former state Rep. Stephen LaRoque is accused of working with his wife to take loans from the East Carolina Development Company to fund purchases of thousands of dollars in Faberge eggs and investing in an ice rink that failed.
This is after on Thursday, Lenoir County Economic Development Director Mark Pope admitted to skirting the rules regarding a $160,000 loan from ECDC, while he was a board member, to allow him and a partner invest in an apartment complex. He said the economy soured and they had to default on the loan.
Friday, federal prosecutors brought in witnesses and presented evidence alleging the LaRoques bought $16,452 in Faberge eggs and jewelry from a Northern Virginia jeweler in December 2008, charging the purchase on the former lawmaker’s Visa card.
Three days before he made his Visa payment in January 2009, prosecutors say LaRoque deposited a check endorsed by him and his wife for $50,000 from ECDC to the LaRoque Management Group. The same day, they say he cut a check from LMG to himself in the amount of $30,000.
The day the ECDC checks were issued, Susan LaRoque allegedly received $160,000 personally and another $140,000 meant to complete the sale of her business.
Later, she’s alleged to have put $200,000 in personal funds and $40,000 from “The Flooring Gallery” into certificates of deposit.
It’s alleged in June 2009, the ECDC board — consisting of LaRoque, his wife and his brother — approved a $150,000 loan to LMG.
On June 26, 2009, each of the following is said to have occurred: The ECDC check went into the LMG account, then a $141,500 check went from LMG to Bladez on Ice for LaRoque’s purchase of a 46 percent stake in the business. Also, one of his step-daughters wrote a check for $96,000 from the Bladez on Ice account for a loan payment.
Jerry Hannah, who currently runs ECDC, countered the image presented by the case against his former coworker.
“Stephen wasn’t like the pre-Christmas Eve Scrooge,” Hannah said. “He was not greedy.”
Court resumes at 9 a.m. Tuesday.
Wes Wolfe can be reached at 252-559-1075 or wes.wolfe@kinston.com. Follow him on Twitter @wolfereports.