Opinion
Not a Profitable Arrangement
Thanks to action by a legislative ethics panel, candidates will have to disclose their nonproft ties. The next step is to bar service on the boards of state-funded groups.
Opinion
Troubling Republicans, Sad Democrats
When commenting on allegations of misbehavior by Republicans, The News & Observer is stern. But regarding Democrats guilty of serious corruption and crimes, the language is noticeably different.
News
State Senator Didn’t File Tax Forms
RALEIGH — Like former congressman Frank Ballance, his predecessor in the state senate, Robert Holloman failed to timely file federal tax forms for the Nebo Family Life Center, a state-funded nonprofit he runs. Holloman was a full-time state employee, a church pastor, and a Hertford County commissioner at the time his nonprofit received two state grants totaling $175,000. Holloman also failed to file financial statements as state law requires. The financial information he eventually did file with the IRS is inconsistent with information Carolina Journal obtained from the Department of Correction, the agency that wrote him the checks.
News
Holloman Speaks on Hyman Scandal
RALEIGH — A federal indictment of former U.S. Rep. Frank Ballance Jr. of Warrenton also alleges that other people and groups cooperated in questionable financial transactions involving tax money. One person featured prominently was State Sen. Robert Holloman of Ahoskie. Holloman told Carolina Journal that he had not read the indictment and was unaware that it contained significant references to him. How was the money spent? “On drug prevention,” he said, and specifically “a counselor and space for a building.” Asked whether his church was paid rent, Holloman answered, “Yes.” But he said, “It is my understanding that we have not done anything illegal or wrong.”
Opinion
A Ballance of Power Is No More
Former Congressman Frank Ballance and his son were indicted Thursday on charges related to the state-funded Hyman Foundation. The damage extends beyond the fate of two men.
News
Ballance, son indicted in Hyman scandal
RALEIGH — A federal grand jury Thursday indicted former U.S. Rep. Frank Ballance Jr. of Warrenton on charges of conspiracy to commit honest services mail fraud, mail fraud of money, and money laundering. His son, N.C. District Judge Garey M. Ballance, was indicted on a charge of failure to file a federal tax return for 2000. Frank Ballance faces felony counts that carry a maximum of five years in prison. The charge against Garey Ballance is a misdemeanor having a maximum of one year imprisonment. The federal investigation of the men stemmed from a scathing review of the John A. Hyman Memorial Foundation by State Auditor Ralph Campbell in October 2003.
News
Ballance Helped Sex Offender
RALEIGH — U.S. Rep. Frank Ballance and Warren County Sheriff Johnny Williams helped a woman avoid registering as a North Carolina sex offender as required by law and a federal plea agreement. Subsequent to her conviction as a sex offender, Ballance employed her as an instructor in a substance-abuse program run by an organization of which he was the chairman. The woman, Lisa Louise Hayes, of Warren County, was employed as a drug treatment specialist at the Federal Correctional Institution in Butner from October 1991 until February 2001. In August 2001 federal authorities arrested her and charged her with engaging in a sexual act with a person who was in official detention and who was under her custodial, supervisory, and disciplinary authority.
News
Ballance Pledged Money to Center
RALEIGH — U.S. Rep. Frank Ballance pledged $10,000 from the embattled John A. Hyman Memorial Youth Foundation toward the Buck Spring Leadership Excellence Center, a Warren County conference facility in the planning stages. The foundation, which Ballance chairs, has received more than $2 million in state money for substance-abuse programs. But last year, an investigation by Carolina Journal and a special review by State Auditor Ralph Campbell uncovered that the foundation often went for items unrelated to substance abuse. The pledge appears to have been unpaid, and the center remains far short of its fundraising goal.
News
Ballance Nonprofit Still Skirting Law
RALEIGH — Rep. Frank Ballance’s state-funded charity to help youths apparently has failed to file IRS tax forms required for nonprofit organizations. After inquiries by Carolina Journal, the John Hyman Foundation did eventually file the returns for 1994 through 1997, but no more recent reports are available. Based on IRS guidelines, the foundation’s fines for 10 years of not filing may be as high as $100,000. Ballance has refused to answer media questions on the Hyman matter during a recent tour of his 1st Congressional District.
Opinion
Ballance Explains It All — Finally
After months of clumsy defenses, embattled U.S. Rep. Frank Ballance finally hit on the right one: he's the victim of a GOP plot. Yes, we've got another Tinfoil Hat Awardee.
News
Outstanding Issues Facing Ballance
RALEIGH — While State Auditor Ralph Campbell's report provides a review of how the John A. Hyman Foundation operated, there are still several issues related to foundation chairman and U.S. Rep. Frank Ballance that have not been resolved. They include a failure to file reports with the IRS, allegations of illegal campaign contributions and fictitious campaign reporting, the possible role played by the separate Alice Eason Ballance Foundation in the congressman's campaign, and the Hyman Foundation's lease of a former state prison site.
News
Audit Missed Some Hyman Funding
RALEIGH — Missing from the state auditor’s report on the John A. Hyman Foundation last week was $140,000 the nonprofit group received from the N.C. Department of Health and Human Services. State Auditor Ralph Campbell’s critical report on the foundation headed by U.S. Rep. Frank Ballance listed a total of $2,115,000 in state funds it had received from the Department of Corrections since 1994. Meanwhile, a federal grand jury is reportedly scheduled to hear evidence from a criminal investigation of Ballance and the Hyman Foundation.
