Ethics fairy visits Jason Saine, files complaints with state and fed investigators

The chubby little toad from Lincoln County has been mired in just about everything unseemly that has oozed through the Jones Street Puzzle Palace in recent years.  The gambling industry had him as a finalist for “policymaker of the year.” He was a leader in the fight to make sports betting a legal reality in North Carolina. He appeared to be living off of his campaign account which, of course, had been well-stocked by, among some others, lobbyists and others with interests before the General Assembly.  Hotel rooms. Meals. Plane Tickets. Vegas Trips.  Clothes (more than $19K worth).  

Jason Saine has appeared to have little regard for his constituents in Lincoln County.  Yet, they kept mindlessly reelecting him.  Unfortunately for ol’ Jason, all that fun he’s been having in Raleigh may be coming back to bite him in his bloated butt:

A new complaint alleges that a politically connected group improperly used its nonprofit tax status to bankroll a prominent North Carolina House lawmaker.

The petition against Greater Carolina Inc., Republican state Rep. Jason Saine and other GOP operatives was filed Thursday with the charitable solicitation division of the North Carolina Secretary of State’s office

A copy of the complaint obtained by WRAL alleges that Greater Carolina has been used to evade the state’s ban on gifts to public officials. It alleges that the organization provides a cover for “covert and unreported lobbying” at luxury events that have benefited lawmakers, and that it raised and spent $1.5 million with no record of how or why it was spent. The copy WRAL obtained didn’t name the person or group behind the complaint.

“Expenditures have been made by Greater Carolina to continue Rep. Saine’s exorbitant spending habits,” the complaint said. “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.”

Those activities aren’t allowed because of the group’s tax status, the complaint said.

Saine, R-Lincoln, didn’t immediately respond to a request for comment about the allegations. He announced last month that he would step down to “pursue several unique professional opportunities that have presented themselves.” His resignation takes effect on Monday.

Joseph Burleson, who was listed as Greater Carolina’s chairman on the group’s most recently available tax documents, also didn’t immediately respond to a request for comment.

“Contrary to the allegations made in this unsigned complaint, Greater Carolina Inc. has and will continue to operate in accordance with all laws and rules that govern these types of organizations,” Jonathan Felts, a spokesperson for Greater Carolina, said in a statement.

A spokeswoman for the secretary of state confirmed that the office received the complaint and is reviewing it. She declined to make the petition immediately available to WRAL. Government agencies often shield such complaints from the public until a review is complete.

WRAL obtained a copy of the complaint from a person involved with the petition. The person’s identity is known to WRAL, but they spoke on the condition of anonymity and declined to name the petitioner. The person said the document was also filed with the Internal Revenue Service and state Ethics Commission.

The petitioner wants the Secretary of State’s office to investigate Greater Carolina and force it to disclose details about its contributions and spending, according to the complaint. It also wants the state Ethics Commission and the IRS to investigate whether the group violated lobbying and tax laws.

Greater Carolina is organized as a 501c4 social welfare organization. Under federal tax law, such nonprofit organizations must have as their primary objective the promotion of civic good.

Social welfare groups can lobby for legislation, but they can’t intervene in political campaigns, and political activities cannot be their primary purpose. They can raise unlimited amounts of money from individuals as well as corporations and don’t have to disclose their donors.

On its 2022 tax return, Greater Carolina said its mission is “to 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.”

The complaint alleges that Greater Carolina’s actual purpose was to act as a passthrough for unlimited contributions from alcohol and gambling interests to a powerful lawmaker who helped those interests achieve their legislative goals while circumventing campaign finance laws and ethics rules.

Politicians are limited in how much money their campaigns can take, and from who. So-called dark money groups like Greater Carolina face no such restrictions.

“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 complaint said.

During his 13-year tenure, Saine rose to become one of the most powerful members of state House leadership, serving as one of its primary budget-writers. He has also advocated for loosening the state’s alcoholic beverage control laws and legalizing sports betting and other forms of gambling.

Greater Carolina paid for a 2023 survey of the potential market for an expansion of casino gambling in North Carolina. Its findings were largely reflected in a 2023 proposal to legalize several more casinos.

The proposal was backed by Senate Leader Phil Berger, R-Rockingham, as well as Saine, but after a lengthy stalemate, it failed to advance. House Speaker Tim Moore said it did not have the support of a majority of the House Republican caucus. That’s despite substantial campaign contributions to several House leaders by individuals connected to the casino industry.

Saine and Greater Carolina made headlines most recently for a May junket for lawmakers and lobbyists on the Bourbon Trail in Louisville, Kentucky. An employee at one of the distilleries they visited later posted on social media that the group was drunk and disruptive when they arrived on their tour bus.

Saine didn’t deny he was present at the event at the time, but he said the unidentified worker’s account of it was a gross exaggeration.

The complaint filed Thursday mentioned the Kentucky event and alleged that it was funded by Diageo, a major multinational alcoholic beverage company. Diageo has at least two registered lobbyists in North Carolina, Secretary of State records show.