An Ethics Fairy encore: A copy of a complaint filed about Jason Saine, et. al.

Thank you, Ethics Fairy.  (Wherever you may be, right now.)

We ran the story just the other day about the filing of said complaint.  (We still don’t have the name of the filer. )  

We’ve heard and seen some pretty appalling things from the (R) side of the fence in Raleigh since the great 2010 takeover.  Quite a few times I’ve dismissed some of those things.  (*”That CAN’T be true!”*)

(Unfortunately, it frequently turns out to be just THAT.) 

There seems to be something about being so close to all that money, and having people fawn over you while calling you Mister or Madam Chairman. Superficial stuff like that has made quite a few folks toss the lessons mama and daddy taught them right out the window.

Let’s take a minute to skim through some of  the text of the 33-page complaint filed against Saine and others with federal and state investigators:

[…] SUMMARY

Greater Carolina was formed as a North Carolina non-profit corporation and
elected to be recognized as a “social welfare” organization. Thus, it purports to advance
the public interest. However, Greater Carolina has barely given a nod to matters in the
public interest and has instead existed to serve and benefit its founders, a select set of legislations, and a generous set of lobbyists and their lobbyist principals seeking access to those legislators.

The organization has been used and is still being used for not only the personal
benefit of its founders but also for the purpose of providing opportunities for covert and unreported lobbying in social settings, including luxury seating at a sporting event and a luxury tour of distilleries in Louisville, Kentucky, among other events, the nature of which have been withheld from the public.

These events which have been described variously as “development events” or
“educational events” have not been reported, as required, by the lobbyists in attendance
(or their principals) or by the legislators receiving the benefit of these invitations and
attendance.

Upon information and belief, Greater Carolina was formed at the instance of
Representative Jason Saine by and through his then legislative Chief of Staff Clark
Riemer. For two years, it was largely inactive but then suddenly in the succeeding two
years raised and spent one and a half million dollars, despite the fact that this
organization claims to have no staff, no employees, and no volunteers.

Representative Saine, who was chosen by the Lincoln County Republican
Executive Committee to fill a vacancy in the General Assembly, has a history of utilizing his campaign funds for personal purposes (see paragraph 84 below).

During the course of his tenure at the General Assembly, he has utilized his campaign funds for clothing, dry cleaning, meals, beverages, and travel. In 2022 and 2023 respectively, he expended more than $2,700 in campaign funds at a hotel in St. Petersburg, Florida, and at Sullivan’s Restaurant here in Raleigh. As recently as the spring of 2024, he spent almost $3,600 at a meal at Eddie V’s Prime Seafood restaurant in Charlotte.

As is further detailed below, it is believed that substantiable expenditures have
been made by Greater Carolina to continue Rep. Saine’s exorbitant spending habits.
Petitioner further believes that Saine has also utilized the resources of Greater Carolina not merely for his own benefit but for the benefit of those lobbyists and legislators, as well as legislative staffers, whose interests he has chosen to advance.

It does not appear that any contribution to Greater Carolina has been reported by
any lobbyist or lobbyist principal or that any expenditure by Greater Carolina for the
benefit of any legislator has been reported by any legislator.

Rather, the activities and events of Greater Carolina have been for the benefit of
Saine, his legislative agenda, and the legislative agendas of those lobbyists and their
interests that he has chosen to advance.

Petitioner’s inquiry is ongoing and therefore reasonably anticipates discovery of
further information relevant to this Petition and will supplement this submission as
warranted.

The Petitioner herein is a citizen and resident of North Carolina, and complaining
of the Respondents, alleges on information and belief:

PARTIES

1. Greater Carolina, Inc. is a North Carolina not-for-profit corporation organized
pursuant to Section 501(c)(4) of the Internal Revenue Code of 1986 and formed
by Respondent Clark Riemer.
2. Respondent Jason Saine, on information and belief, first established Greater
Carolina with Clark Riemer in 2018. Jason Saine is the N.C. House
Representative of District 97 and a member of the Legislative Ethics Committee.
3. Clark Riemer is a registered lobbyist working as a Government Affairs Specialist
at Maynard Nexsen and formerly served under Respondent Jason Saine as his
Chief of Staff.
4. Respondent David Coble is the sole Director for Greater Carolina.
5. Respondent Anna Scott Marsh was previously listed as Greater Carolina’s
fundraising contact.
6. Respondent Kevin Wilkinson is a registered lobbyist with the lobbying firm The
Southern Group.
7. Respondent Russell Peck was previously employed as a registered lobbyist and
the former Executive Director of the North Carolina Republican Party.

INTRODUCTION

In 2018, Greater Carolina was formed as a 501(c)(4) organization by Clark
Riemer, who at that time as a staff member for Representative Jason Saine. The following
year in 2019, Clark Riemer began serving as Rep. Saine’s Chief of Staff.
Although Greater Carolina claims its mission is to promote economic growth
through free enterprise principals, on information and belief, Greater Carolina instead is
engaged in covert lobbying in support of the gambling industry at a time where North
Carolina has received an increasing interest from the gambling industry.

Further, Greater Carolina provides a covert forum for lobbying generally and for the provision of gifts, entertainment, food, and beverages to participating members of the General Assembly.
Since 2021, Greater Carolina has raised over $1.5 million and spent over $1.2
million with little information regarding its fundraising efforts or its expenditures, yet
Greater Carolina has neither obtained a charitable solicitation license nor registered any
lobbyists with the Secretary of State.

Upon information and belief, Greater Carolina uses these contributions to host
lavish events for gambling industry lobbyists and select legislators, including Rep. Saine, that would otherwise be reportable as a lobbying event, all the while subsidizing the vices of several state legislators in contravention of state campaign finance and ethics laws.
Thus, Greater Carolina has improperly used its status as a 501(c)(4) organization
to circumvent reporting requirements for lobbyist and lobbyist principals under the vague
claim that it promotes free market principals through educational events with little to no
evidence in support.

Instead of operating as a social welfare organization as it claims to be, Greater
Carolina effectively operates as a lobbying front, providing gambling industry lobbyists
and lobbyist principals with access to members of the North Carolina General Assembly
through what it calls “development events”—all while hiding behind the privacy
privileges of its 501(c)(4) organization. In other words, Greater Carolina has effectively
used its status as a social welfare organization under the Internal Revenue Code to shield its lobbying activity by funneling its expenses and expenditures through the organization in order to circumvent reporting requirements.

What is more, Rep. Saine, among other members of the General Assembly, have
personally benefitted from the organization’s donations in the form of lavish events
hosted by the organization, in direct violation of the gift ban under N.C. Gen. Stat. §
138A-32.

Additionally, their lobbyist counterparts not only fund but also participate in
these events that are otherwise reportable as lobbying activity to the Secretary of State.
Under N.C. Gen. Stat. § 138A-12, the State Ethics Commission has jurisdiction
over violations of unethical conduct by covered persons, including members of the
General Assembly.

Similarly, under N.C. Gen. Stat. § 120-103.1, the Legislative Ethics Committee
has jurisdiction over violations of Chapter 138A of the General Statutes by members of
the General Assembly.

Under N.C. Gen. Stat. § 131F-23, the Secretary of State has the power over
violations of Chapter 131F of the General Statutes by charitable organizations and its
affiliates.

Similarly, under N.C. Gen. Stat. §§ 120C-601 and 602, the Secretary of State and
the State Ethics Commission has authority over lobbying activity and the requisite
expenditure reports of lobbyists and lobbyist principals in the State.
The spending by Greater Carolina exhibits excess benefit transactions.
Accordingly, Petitioner respectfully requests that each entity with its respective
duties and powers timely impose appropriate remedies.

FACTS

1. Greater Carolina was formed by the filing of Articles of Incorporation with the
North Carolina Secretary of State on August 21, 2018 by Clark Riemer. These
filings indicated that Greater Carolina was formed pursuant to § 501(c)(4) of the
Internal Revenue Code of 1986. See Articles of Incorporation, attached as
Exhibit 1.

2. Clark Riemer is now employed by Maynard Nexsen as a lobbyist and is duly
registered with the Secretary of State. He is a registered lobbyist for numerous
principals, some of which include alcohol and gambling-related companies such
as the North Carolina Spirits Association, Rush Street Gaming, LLC, and Sports
Betting Alliance. See Clark Riemer’s Lobbying Registration with the Secretary of
State, attached as Exhibit 2.

3. Despite its incorporation in 2018, Greater Carolina had no reportable activity until
2021 when it filed its first Form 990. See Greater Carolina’s Form 990 for 2021,
attached as Exhibit 3.

4. Furthermore, Greater Carolina has neither applied for nor obtained a charitable
solicitation license, pursuant to N.C. Gen. Stat. § 131F-5, despite the fact that it
openly engages in fundraising activity and even acknowledges these acts.

5. Its purported mission, which is stated on its Forms 990 as well as its website, is
“[t]o ensure North Carolina embraces the policies necessary to maintain and
support our status as one of the best states in the nation for business and free
enterprise. For the future economic success and vitality of our state, it is crucial
that our tax and regulatory systems keep pace with entrepreneurship and new
technology by promoting economic growth and innovation.” See
greatercarolina.com/our-mission, marked as Exhibit 4.

6. Notwithstanding its broad mission, Greater Carolina has only publicly advocated
in policies regarding the gambling industry. More specifically, Greater Carolina
has released just two reports on its website: a market analysis of the gambling
industry in North Carolina and a polling briefing on public opinion around
gambling, both of which demonstrate a positive endorsement on the gambling
industry and its purported effects on the North Carolina economy. See Greater
Carolina’s Report “North Carolina Gaming Market Analysis,” marked as Exhibit
5; Greater Carolina’s Report “North Carolina Gaming Survey,” marked as
Exhibit 6.

7. Greater Carolina commissioned Spectrum Gaming Group to conduct the market
analysis, which was released in March 22, 2023. The analysis included an
examination of gambling revenue from surrounding states and projected gambling
revenue for North Carolina.

8. Incidentally, the North Carolina legislature later ratified a bill legalizing sports
betting on June 8, 2023. Rep. Saine was one of the chief sponsors of the bill.
Moreover, as evidenced by his ties to various lobbyists mentioned throughout the
complaint, as well as his campaign raising prowess, it is clear that Rep. Saine has
made it his mission to advance gambling in North Carolina.

9. Nevertheless, Greater Carolina has released very little information regarding its
members, its fundraising activity, or its policy events, as evidenced by its website
which only contains the two aforementioned reports, as well as a solicitation to
donate to the organization via a “Donate” button located at the top right corner of
the webpage. See www.greatercarolina.com, attached as Exhibit 7.[…]