GREENVILLE — The prosecution spent Day 9 of the Stephen LaRoque fraud trial questioning a trio of Kinston certified public accountants about their working relationships with the former state representative and his nonprofits.
Prominent Kinston CPA Lloyd Moody and his wife, Susan, along with Angie Johnson, testified the entire day Friday on how they worked with LaRoque, who is accused of illegally taking money from his nonprofits, East Carolina Development Company and Piedmont Development Company.
Susan Moody wrapped up her testimony that began Thursday by answering questions from U.S. Attorney Dennis Duffy about her part in some of LaRoque’s tax returns from 1999-2011.
Lloyd Moody, who has had his CPA practice in Kinston since 1973, spent most of Friday on the witness stand. Moody testified that his practice prepared joint tax returns for LaRoque and his wife for a number of years, in addition to those for LaRoque Management Group and the company that oversaw the LaRoque’s ownership in a Greenville ice rink. Moody’s practice was also paid by ECDC for bookkeeping services.
Moody, who joined the ECDC board in 2011, testified he had donated to LaRoque’s political campaigns in the past, along with he and his wife taking a Las Vegas vacation with the LaRoque’s at one time.
Duffy spent most of his questioning of Lloyd Moody (and later Johnson) delving into the books of ECDC and PDC, along with asking about unsigned contracts for LaRoque from 1999 and 2003 that stated the 3 percent of the total loans the nonprofits made were LaRoque’s earnings. LaRoque formally signed a contract in 2011, reinforcing the 3 percent notion.
“I believe we were reaffirming a contract from 2003 and the 3 percent was a good deal (for ECDC),” Moody said about the 2011 contract.
Johnson testified that her firm conducted annual audits of ECDC beginning in 2000 and ending in 2010. Duffy asked her about LaRoque accepting a loan from ECDC, to which she said would not be advisable for a director of a nonprofit such as ECDC.
The prosecution portion of the trial is almost over; Duffy will complete his examination of Johnson Monday but is only expected to call one more witness to the stand. LaRoque is set to take the stand in his own defense at some point Monday. In his final instructions to the jury Friday, Howard told the jury they could possibly be ready to start deliberating the case as early as Tuesday.
Bryan C. Hanks can be reached at 252-559-1074 or at Bryan.Hanks@Kinston.com. Follow him on Twitter at BCHanks.