Newby’s daughter, 2022 lawmaker trip details highlight new filings in NC corruption probe

We’ve told you about lawmen’s interest in a 2024 lobbyist-lawmaker trip to some Kentucky distilleries.  Here’s yet one more thing nurturing my pessimism about the November elections:

Powerful North Carolina lawmakers were treated to at least one other trip to Kentucky in addition to a 2024 bourbon tour, replete with free booze and other gifts, that has since resulted in criminal charges against four lobbyists, according to a search warrant made public in the case.

Investigators are also looking into a 2022 trip that they believe served as the model for the 2024 trip at the heart of the criminal case, according to the warrant, which was filed last week. It also indicates more lobbyists, political fundraisers and others were involved in the effort, including a top North Carolina Republican Party official. But there have been no additional charges.

It’s illegal for lobbyists or the groups that pay them to give gifts to politicians in North Carolina. 

However, it has become increasingly common for politicians to go on private “educational” trips sponsored by certain advocacy groups that can keep the identities of their donors secret from the public. 

The criminal charges in this case allege the 2024 Kentucky trip was illegal — even though it was paid for by an outside group as an educational opportunity — because the group that funded the trip was itself funded by alcohol and gambling companies on the advice of their lobbyists.

The new search warrant, issued in March but made public on May 18, also shows that top issues the companies behind the trips may have been pushing for include some that are being debated right now at the legislature.

Diageo and Sazerac, two global companies that own numerous alcohol brands, were among the companies whose lobbyists have been charged. Representatives for Diageo and Sazerac didn’t respond to requests for comment when their lobbyists were charged last month, or again on Tuesday regarding the new search warrant, which details tens of thousands of dollars they spent on the trips.

The search warrant also lists Sarah Newby, a top N.C. Republican Party official, as having been in charge of setting up the 2024 trip. Newby has not been charged and told WRAL on Tuesday she defends her work planning and raising money for the trip, which was separate from her NCGOP role. […]

If that name sounds familiar, you might know her as the daughter of state Supreme Court chief justice Paul Newby, who has a strong following within the state’s religious right.

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[…] “I remain committed to working with integrity, professionalism, and the highest standards of reputation and accountability,” Newby said. “The North Carolina Republican Party does not conflict or have involvement with my contract consultant work.”

The search warrant — which targeted an American Express credit card account that investigators say was used by Newby at the direction of the Greater Carolina group behind the trip — indicated that Newby helped set up the trip as a private contractor for Greater Carolina, rather than in her official party role. A spokesman for the NCGOP didn’t immediately provide a comment on the new details, or on whether the NCGOP supports the changes to state law that the companies were seeking.

The search warrant says investigators have obtained communications indicating that Diageo and Sazerac helped fund the 2022 trip at which a Diageo lobbyist reported that lawmakers were briefed on three main policy priorities:

• Allowing liquor to be sold on Sundays.
• Expanding the availability of premade cocktails in the state.
• Building a new liquor warehouse for the state ABC Commission.

Earlier this month, WRAL reported, the ABC Committee in the state House of Representatives debated a newly rewritten bill that would have allowed ABC stores to open on Sundays and to allow grocery stores to begin selling certain premade cocktails. And as part of state budget talks, lawmakers have also suggested paying $1.2 million to repair the ABC warehouse. […]

*What an amazing coincidence. *

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[…] The House ABC Committee ultimately voted in favor of the bill, although they removed the language about Sunday sales from the bill after facing opposition from Christian groups. Lawmakers on the committee also expressed strong support for building a new ABC warehouse, which a lobbyist for ABC boards statewide also said was their top priority.

That points to another wrinkle at play: The changes law enforcement officials say may have motivated the Kentucky trips aren’t backed by many other groups and businesses, including those who weren’t involved in the Kentucky trips.

The provision still surviving in the ABC bill, to let grocery stores sell canned cocktails, is opposed by the ABC board lobbying group — which fears lost revenue — but is heavily supported by lobbying groups for grocery stores and alcohol distributors, who could see their revenues increase if it becomes law.

So far no politicians, fundraisers or executives are known to have been charged in the case, just the lobbyists who prosecutors say got a handful of liquor and gambling companies to foot the bill for the 2024 trip in which influential lawmakers were provided free food, liquor, tours and more. […]