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 APPLICATION FOR SEARCH WARRANT

In the Matter of

Mina Lynette Mustian aka Lyne Thompson aka Lynette Thompson

NC Bail Academy, LLC

Rockford-Cohen Group, LLC

ATTACHMENT I

PROPERTY TO BE SEIZED

I. Certain property and documents, to wit:

Copies of certain financial record documents, to wit: account signature cards, canceled

checks (including certified checks and receipts), monthly bank statements, credit card

accounts and credit card statements o f " account(s), deposit tickets and credits, items of

deposit, offset items, ledgers, statements, stubs, drafts from other banks or financial

institutions and associated draft reports, confirmations of wire transfers and associated wire

transfer reports and/or any other wire transfer records documenting deposits or disbursement

(including receipts and advisees and transfer request records), debit and credit memoranda,

correspondence and any and all other records and documents pertaining to any and all

accounts both open and closed, including checking, savings, money market (including

certificates of deposit) in the name of, or controlled by, the following persons or entities:

Mina Lynette Mustian aka Lyne Thompson aka Lynette Thompson

NC Bail Academy, LLC

Rockford-Cohen Group, LLC

At Union Bank & Trust Company, for the period extending from January 1 , 2 0 1 5 through

December 3 1 , 2 0 1 6 , including but not limited to any and all accounts both open and closed

held in the name of Union Bank & Trust Company.

 APPLICATION FOR SEARCH WARRANT

In the Matter of

Mina Lynette Mustian aka Lyne Thompson aka Lynette Thompson

NC Bail Academy, LLC
Rockford-Cohen Group, LLC

ATTACHMENT II

PREMISES TO BE SEARCHED

Union Bank & Trust Company

7 0 1 Mutual Court

Raleigh, North Carolina 2 7 6 1 5

2
 APPLICATION FOR SEARCH WARRANT

In the Matter of

Mina Lynette Mustian a/k/a Lyne Thompson a/k/a Lynette Thompson

NC Bail Academy, LLC

Rockford-Cohen Group, LLC

ATTACHMENT III

AFFIDAVIT TO ESTABLISH PROBABLE CAUSE

I, the undersigned affiant, David L. Rose have been a Law Enforcement Officer for over

twenty-nine (29) years. I am currently employed as a full time, sworn law enforcement

agent by the North Carolina Department of the Secretary of State. I am a certified general

law enforcement instructor by the North Carolina Criminal Justice and Education Standards

Commission. I have received detailed training in arrest, search and seizure, elements of

criminal law, criminal investigation and constitutional law. During the course of my law

enforcement career, I have investigated numerous felonious violations of the Law, including

homicide, sexual crimes, sexual crimes against children, assault, theft, robbery, domestic

violence, narcotics violations, embezzlement, and various other fraud and financial crimes.

I have been involved with cases either as lead investigator or in an assisting capacity for

obtaining property by false pretenses, identity theft, credit card fraud, securties fraud and

other financial crimes.

I, the undersigned affiant, A. H. Jones, have been a Law Enforcement Officer for over thirty

nine (39) years. Currently I am employed as a full time, sworn law enforcement agent by the

North Carolina Department of the Secretary of State. However, due to an injury I am temporarily

in a non-sworn status. During my 3 9 years of service I have worked as a Special Agent,

Securities Investigator, Detective Sergeant/Supervisor of Criminal Investigation Unit, Criminal

Investigator, Internal Affairs Investigator, Commander of Specialized Street Crimes Unit,

Commander Patrol Unit, Sergeant Specialized Street Crimes Unit, Narcotics & Vice Detective,

Detective in Special Operations Division, Member of Specialized Street Crime Unit, Juvenile

Detective, School Resource Officer, Police Officer, and Deputy Sheriff in the Patrol, Civil and

Court divisions,

3
I have been awarded the Advanced Law Enforcement Certificate by the North Carolina Criminal

Justice and Education Standards Commission. I have received specialized training in Criminal

Investigations, Interview and Interrogation, Legal Issues, Civil Process, Laws of Arrest Search

and Seizure, Internal Affairs Investigations, Narcotics and Vice Investigations, Preliminary

Investigations, Criminal Intelligence Analysis, Credit Card and Check Fraud, Insurance Fraud,

Securities Violations, Trademarks, and Notary violations. I have received an extensive amount

of hours of regular in-service training and instruction on law enforcement matters.

I have conducted, supervised, and assisted in more than a thousand criminal investigations during

the course of my law enforcement career. I previously held Certification as a North Carolina

Law Enforcement Instructor, and have taught both in the Basic Law Enforcement Programs and

in the Criminal Justice Curriculum Program at Coastal Carolina Community College -

Jacksonville, NC; James Sprunt Community College - Kenansville, NC; Durham Technical

Community College - Durham, NC; and Wake Technical Community College - Raleigh, NC.

BACKGROUND TO ESTABLISH PROBABLE CAUSE

The North Carolina Department of the Secretary of State (SOS) is tasked with the duty and

power to conduct investigations of violations of Articles 2, 4, and 8 of Chapter 120C (Lobbying

Act) of the N.C. General Statutes.

The law defines "lobbying" to include both influencing or attempting to influence legislative or

executive action through direct communication or activities, and developing goodwill through

communications or activities, including the building of relationships with the intention of

influencing current or future legislative or executive action, or both with a "designated

individual" (a) legislator, legislative employee or public servant (members of the Council of State

and Cabinet, voting members of boards, and certain State employees, or a member of their

immediate family, or extended family living in the household).

North Carolina law requires that lobbyists, principals, and solicitors must register with the

Secretary of State's office before engaging in any lobbying. It shall be unlawful for an individual

to lobby without registering within one business day of engaging in any lobbying. Principals

must file a written authorization for lobbyists, and lobbyists must file a separate registration

statement for each principal each year. Lobbyists, principals, and solicitors must register with the

NC Secretary of State every year.

On or about July 5, 2 0 1 6 , the Lobbying Compliance Division (hereinafter referred to as Division)

of the North Carolina Department of the Secretary of State (SOS) began receiving numerous

inquiries regarding whether Attorney Mark L. Bibbs (Bibbs) was registered as a Lobbyist. Division

employees received phone calls or emails from at least four individuals regarding Bibbs' lobbying

status and stating that they had witnessed Bibbs lobbying during the 2 0 1 6 legislative session in

opposition to Senate Bill 5 0 8 .

4
One of the complainants sent the Division an email asking if Bibbs, individually or through a

company was registered to lobby at the NC General Assembly. In response to the inquiries the

Division database (files) were searched and it was confirmed that Bibbs was not registered as a

lobbyist for any Principal until ten ( 1 0 ) days after the Division began receiving complaints. On July

1 5 , 2 0 1 6 Bibbs registered as a lobbyist for Cannon Surety (Cannon).

Division records were also searched for any Principal registrations where Bibbs was named as their

lobbyist. Beginning January 1 , 2 0 1 6 through to the date the Division received the first inquiry

about Bibbs' lobbying status (July 5, 2 0 1 6 ) there were no Principal registrations naming Bibbs as

their lobbyist. However, on July 8, 2 0 1 6 (after the complaints began) Dallas McClain (McClain)

President of Cannon Surety registered Cannon as a Principal and named Bibbs as its lobbyist.

On July 27, 2 0 1 6 a formal written complaint was filed with the Division against Bibbs alleging

Bibbs violated the lobbying statute. The complainant stated the complainant had personally

appeared at the NC General Assembly and was monitoring Senate Bill 508 (SB 5 0 8 ) . SB 508 is

described as an ACT to make various amendments to the Bail Bond, Collection Agency, and

Criminal Mediation Laws.

The complainant stated the complainant continually received documentation and emails from many

parties since the legislation involved the complainant's industry, The complainant stated that on

June 28, 2 0 1 6 the complainant received an email sent out by Bibbs entitled "Attorneys on Judiciary

III and Attorney Members of the House." In response to the email, the complainant stated that the

complainant asked Bibbs who he was representing and Bibbs responded "Cannon Surety."

The complainant stated the complainant possessed "significant correspondence" showing Bibbs

addressing the NC Department of Insurance (DOI), the School Board Association, multiple

legislators, and others in what they described as lobbying activity taking place during the 2 0 1 6

legislative session.

The complainant made available to the Division text messages exchanges between the complainant

and Bibbs in which Bibbs assured the complainant he had been "well paid". However, the

complainant stated when the complainant pressed Bibbs for information on who retained him Bibbs

replied it was confidential.

The complainant advised the complainant then contacted the Division and discovered that Bibbs

was not registered. The complainant stated the complainant also discovered that the entities Bibbs

was lobbying on behalf of (Cannon and NC Bail Academy (NCBA)) were also not registered as

principals.

The complainant also stated on several occasions the complainant observed Bibbs openly lobbying

in opposition to SB 508, and advised Bibbs was in the company of Lyne Thompson (Thompson)

and McClain. The complainant advised the Division that Thompson, McClain and another

individual (Carl Bayless Valentine (Valentine)) are involved in multiple businesses together that

center around the bail bond industry.

The SOS Corporations Division files contain records showing that Thompson is currently the.

General Manager of the NCBA, and that she is the General Manager of the Rockford-Cohen Group,

5
LLC (RCG), which is the parent company ofNCBA. The nature ofNCBA's business, as stated in

corporate filings of record with the S O S ' s Corporations Division, is Education. Research revealed

that NCBA offers N01th Carolina Department of Insurance (NCDOI) Continuing Education and

Pre-licensing classes to licensed and prospective bail bondsmen. The pre-licensing class is required

by NCDOI before any individual can be licensed as a bail bondsman.

The Division received a second written complaint against Bibbs from a second complainant

(Complainant #2) alleging Bibbs violated the lobbying statute. The second complaint was also

received on July 27, 2 0 1 6 . When SA Jones contacted Complainant #2 the complainant advised that

Thompson was also a Member Manager of Premier Judicial Consultants, LLC (PJC), which is the

parent company of Cannon.

Complainant #2 made available to the Division a copy of PJC's Operating Agreement dated

November 23, 2014. The Operating Agreement was signed by Clyde R. Brawley, Member

Manager, Dallas McClain, Member-Manager, Lynette Thompson, Member-Manager, and Carl

Valentine, Member-Manager. PJC's operating agreement included a "Schedule A" that indicated

Brawley, McClain, Thompson, and Valentine each owned a 25% interest in PJC.

In addition to the above Complainant #2 made available to the Division an email that supports

Complainant #2's statement that Thompson was part owner of PJC and Cannon. See below:

Cannon Surety is a captive insurance company located in Greensboro, NC. Cannon is authorized

by the NCDOI to transact surety business and specifically to transact bail bond business in this

state. Cannon contracts with surety bondsmen to execute or countersign bail bonds for them in

connection with judicial proceeding. Surety bondsmen receive, or are promised consideration for

doing so.

SOS Corporation Division records indicate that:

1. McClain is the President of PJC, and he is also President of Cannon.

6
 2. McClain is a Member of VAL Investments LLC (VAL) and Administrative

Director, Member & Organizer of American Regional Residency Investment

Venture Enterprises, LLC (ARRIVE).

3. Valentine is Manager/Organizer of VAL, and is listed as the C.E.O., Member,

Organizer, and Registered Agent of ARRIVE.

The first complainant included with their complaint numerous relevant emails including an email

sent by Bibbs to McClain and Thompson dated February 1 1 , 2016. The email was carbon copied

to Kim Crouch - NC Bar Association Lobbyist and others. The email clearly shows a close

relationship between Bibbs, McClain, and Thompson, and their joint involvement in lobbying

against Senate Bill 508 (SB 5 0 8 ) .

In the referenced email Bibbs states McClain and Thompson should speak against SB 508 in his

absence at an upcoming House Committee meeting. At the time of the email Bibbs was not

registered as a lobbyist, and McClain and Thompson's companies were not registered as principals.

See referenced email below:

Senate B i l l 508 - Rod M a l o n e

bibbslawgroup@gmail.com <bibbslawgroup@gmail.com> Thu, Feb 1 1 , 2 0 1 6 at 1 1 : 4 0 AM

T o : Dallas McClain <duhkingfish@yahoo.com>," lyne.thompson@gmail.com" <lyne.thompson@gmail.co

Cc: Leanne W i n n e r <lwinner@ncsba.org>, Kim Crouch - NC Bar Association Lobbyist <kcrouch@ncbar.org>,

Bert Kemp <robert.c.kemp4.mil@mail.mil>

Dallas & Lyne:

I just spoke with Rod Malone, the school board attorney for Wake County, he's opposed to this

b i l l as well. He can't be there tomorrow either, however, he will have someone from his office

there to speak against it also. One or both of you, in my absence, should speak against it as well.

Hopefully, there remains enough opposition to keep it bottled u p !

A l l my very best regards,

Mark L. Bibbs

McClain responded to Bibbs' email with the following:

On Feb 1 1 , 2 0 1 6 , at 1 1 : 4 5 AM, duhkingfish <duhkingfish@yahoo.com> wrote:

ten four consigliere.

While reviewing all the emails made available to the Division, SA Jones found several that contain

advertising for Bibbs legal services containing the following representations: "Lawyer and Lobbyist

for the North Carolina Bail Academy and Cannon Surety. LLC. "

The advertising emails are dated May 1 1 , 2 0 1 6 , May 1 8 , 2 0 1 6 , May 25, 2 0 1 6 , June 1 , 2 0 1 6 , June 9,

2 0 1 6 , and June 1 5 , 2 0 1 6 . All were distributed during a time period Bibbs was not registered to

lobby for Cannon or for the North Carolina Bail Academy. In addition the North Carolina Bail

Academy, NC Bail Academy, and Cannon were not registered as lobbyist principals, pursuant to

G.S. 120C. At the time Bibbs sent out the advertisements the North Carolina Bail Academy had

been administratively dissolved (March 4, 2 0 1 6 ) , due to failure to file annual reports, Note: The

7
North Carolina Bail Academy, LLC and NC Bail Academy, LLC are two separate entities, but

Thompson is associated with both. Thompson is the Registered agent and General Manager of

NCBA, and was the registered agent, organizer and member of North Carolina Bail Academy.

In response to the information shared with the Division copies of the Minutes of House Committee

on Judiciary III, for the June 1 5 , 2 0 1 6 and June 2 8 , 2 0 1 6 hearings were obtained along with the

associated signup sheets.

An examination of the signup sheets for the June 1 5 , 2 0 1 6 hearing confirmed that Mark Bibbs

signed in showing his film as "LLPC" (Long Leaf Pine Consulting). Long Leaf Pine Consulting is

the entity Bibbs uses for his Lobbying business. Thompson also signed in as representing NCBA,

and McClain signed in and gave his firm as Cannon Surety.

Bibbs signed in for the June 28, 2016 House Committee on Judiciary III hearing, but on this

occasion he indicated "BLG" (Bibbs Law Group) as his firm. Lyne Thompson was also present at

the June 28 hearing, and listed NCBA as her firm.

A copy of the audio recording that captured the hearing on June 2 8 , 2 0 1 6 was obtained, and a

review of the recording revealed at 51: 11 into the recording Bibbs was recognized by the

Committee Co-Chair (Rep. Sarah Stevens). Bibbs identified himself and then stated: "I represent

Cannon Surety" a captive insurance company in Greensboro, NC. Bibbs advised they had strong

objections to all of Section 3, etc. Bibbs was clearly lobbying in opposition to SB 5 0 8 .

Thompson also addressed the committee in opposition to the bill and her comments begin at 43 :43

into the recording. She identified herself as President of the NCBA.

On the same day (July 5, 2 0 1 6 ) the Division began receiving complaints regarding Bibbs' lobbying

without being registered McClain contacted the Division and wanted to know what would happen if

someone was found to be lobbying without registering. Later that day, McClain sent an email to the

Division advising he was writing to correct a deficiency and stated he thought Cannon's 2 0 1 5

registration carried them through the 2 0 1 6 short session of the Legislature.

The following day (July 6, 2 0 1 6 ) Bibbs sent an email to the Division that almost mirrored the one

sent by McClain. He also stated that he was writing to try to correct a lobbying registration

deficiency, and that he thought his 2015 registration carried him through the entire 2 0 1 5 - 2 0 1 6

session of the General Assembly.

The Division opened Lobbying Compliance Division Case #2016-02 in response to the mounting

evidence of lobbying violations. The purpose of the investigation was to determine whether any

criminal violations had occurred underN.C.G.S. 120C-200.

During an August 3 0 , 2 0 1 6 phone conversation between SA Jones and the first complainant, the

complainant informed SA Jones that Bibbs had also appeared on February 1 2 , 2 0 1 6 before the N.C.

Courts Commission representing Cannon.

A copy of the audio file (recording), signup sheet and attendance record for the February 1 2 , 2 0 1 6

N.C. Courts Commission hearing were obtained and they confirmed Bibbs signed in and gave

8
 LLPC as his film. A review of the recording confirmed Bibbs lobbied the Commission and stated

he represented both Cannon and NCBA. The NC Court Commission has several members who

are for purposes of G.S. 1 2 0 C , "covered persons".

The information obtained through the official records for the N . C . Courts Commission, and the

Minutes of House Committee on Judiciary III, for the June 1 5 , 2 0 1 6 and June 2 8 , 2 0 1 6 hearings

along with the associated signup sheets independently corroborates information given to the

Division by the complainants.

The evidence substantiated that Bibbs did in fact address the Judiciary committee and the NC

Courts Commission and was lobbying on behalf of both the NCBA and Cannon. Division

records confirm at the time Bibbs addressed the Judiciary committee and the NC Courts

Commission Cannon and NCBA were not registered as Principals, and Bibbs was not registered

as their lobbyist.

S O S records confirm NCBA's parent company is RCG. Thompson is the organizer, member,

and registered agent for RCG. SA Jones searched the S O S Corporation files and discovered that

Valentine/ All American Bail Bonds (AABB) paid reinstatement and annual report fees for

NCBA and RCG through Valentine's business (AABB) financial account located at Wells Fargo

Bank. Other fee payments associated with NCBA and RCG were paid for by cash or credit card.

SA Jones obtained search warrants for the financial accounts of Cannon and AABB. The

accounts were searched for evidence of lobbying payments to Bibbs on behalf of Cannon and

NCBA.

Cannon's Capital Bank account records revealed four (4) checks made payable to Bibbs. The

checks totaled $ 2 , 9 5 0 . 0 0 . However, none of the checks contained any identifying information as

to the purpose of the payment. The checks were deposited by Bibbs into a Bank of America

Bank account.

The Cannon Capital Bank account records contained approximately twenty (20) checks written to

an AABB employee, Gudiel Toledo. Toledo is a DOI licensed surety bondsman, and on his NC

Notary application he stated he worked for AABB. Toledo did not cash or deposit the checks,

but instead endorsed all of them and made them payable to Carl Valentine and/or AABB. Some

of the checks made payable to Carl Valentine and/or AABB also included AABB's Wells Fargo

account number # 2 5 0 1 1 4 7 3 7 in the endorsement. See below:

9
 CAID{ON SUAETY

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AABB's Wells Fargo Bank account records revealed fifteen ( 1 5 ) checks made payable to Bibbs

totaling approximately $ 1 7 , 6 8 4 . 8 8 . All the checks with the exception of one had "Odom Case"

in the memo line. The exception check had "Thompson/McClain" in the memo line.

On December 9, 2 0 1 6 SA Jones with the assistance of S A D . Rose (SA Rose) interviewed Bibbs.

Bibbs admitted he lobbied for Cannon while not being registered. Bibbs also admitted he had

been paid monthly by Cannon and NCBA for his lobbying work.

SA Jones questioned Bibbs about the "Odom Case" he had worked (referring to the $ 1 7 , 6 8 4 . 8 8

in checks written to him by AABB), and he stated he had no knowledge of any such case. Bibbs

advised he did not recall working any Odom case.

Bibbs advised Agents Jones and Rose that he kept his lobbying fees and legal fees in two

separate bank accounts. Bibbs stated his lobbying money was associated with Long Leaf Pine

Consulting, LLC.

10
SA Jones checked Division records for Lobbying expense reports filed by Cannon and

discovered that Cannon's Principal Expense Report Form for the first and second quarters of

2 0 1 6 were not received by the Division until December 2 8 , 2 0 1 6 (after Bibbs' interview), and

McClain certified "ZERO EXPENSE" for those quarters, The quarter ending December 3 1 ,

2016 was filed three days later (December 31, 2016), and McClain certified the cumulative

combined payments to Bibbs for the 2 0 1 6 4th quarter totaled $ 2 4 , 0 0 0 . 0 0 .

Bibbs stated he stopped lobbying for Thompson/NCBA when Thompson sent the Division an

Affidavit in October 2 0 1 5 stating her July 3 0 , 2 0 1 5 Principal registration had been filed in error.

Bibbs stated his contract in 2015 with Thompson/NCBA was the same as McClain's 2015

contract, which required monthly payments. Bibbs stated: "Lyne maybe owes just a small

amount". Bibbs advised he did not represent NCBA at all in 2 0 1 6 . However o@cial records and

audio files from the NC Courts Commission hearing contradict Bibbs' statement.

SA Jones discovered the only 2 0 1 5 Principal expense report form filed by NCBA was for the

quarter ending June 30, 2015. The report was filed July 22, 2015, and Thompson certified

"ZERO EXPENSE" for that quarter. A subsequent report was not filed until January 3 , 2 0 1 7

(after the Division's interview with Bibbs). The Principal expense report was for first quarter

2 0 1 5 (ending March 3 1 , 2 0 1 5 ) . The report was almost two years overdue. Thompson certified

that NCBA had "ZERO EXPENSE" during that quarter also. As with the Cannon filings the

NCBA filings are in direct conflict with admissions made by Bibbs.

On February 9, 2017 SA Jones with the assistance of SA D. Register interviewed NCBA's

General Manager and Registered agent known as Lyne Thompson.

Thompson admitted she hired Bibbs as a lobbyist for NCBA, and also admitted to paying Bibbs

in 2 0 1 5 on a monthly basis. She stated Bibbs billed her $ 6 , 0 0 0 . 0 0 per month, but had agreed to

accept $ 2 , 0 0 0 . 0 0 per month. Thompson advised she had paid Bibbs approximately $20,000 to

$24,000 for lobbying for NCBA in 2 0 1 5 . She stated she banks with Union Bank in Youngsville.

Thompson admitted to SA Jones and Register that some of her payments to Bibbs were made by

check, and on occasion she put the money directly into his bank account. Thompson stated most

of the payments were in cash because that was Bibbs' preferred method of payment. She advised

Bibbs provided her with a receipt for the cash payments. Thompson stated she had the cancelled

checks and agreed to make those and the receipts available to the Division. However, as of this

date she has failed to do so.

Thompson was shown the Princip al expense report forms she filed for 2 0 1 5 stating "ZERO

EXPENSE". Thompson stated she didn't know that she had to claim expenses. SA Jones

pointed out the signature (Lynn Thompson), and she admitted the signature was hers, but advised

the form was filled out by someone else and she just signed it. She went on to admit that she

regularly signed forms and left them on Gudiel Toledo's desk for him to notarize for her. She

described Toledo as an employee of Cannon.

Thompson was advised Notary law required the principal to be present when a document was

notarized, and also required the Notary to personally know or identify the person they were doing

the notary act for. Thompson advised Toledo had known her for some time. SA Jones

1 1
confronted her with the fact that Toledo notarized Lyne Thompson's signature and as such could

not have known her very well. Thompson was asked if she had any ID in the name Thompson

and she admitted she did not.

During a routine background check on Thompson, SA Jones found evidence that Lyne

Thompson is actually Mina Lynette Mustian. SA Jones discovered Thompson's NC Drivers

license, NC Appraisers license, and NC Real Estate license are all in the name of and signed

"Mina Mustian". The NC Drivers license (NCDL) history for customer # 5 6 0 9 2 8 1 revealed the

name on record has always been Mina Lynette Mustian since it was first issued in 1978.

Mustia n' s license was renewed as recently as July 2 3 , 2 0 1 5 with no name changes. In addition

SA Jones discovered the identification presented to lease the p os t office box for NCBA and RCG

was M u sti an' s NCDL # 5 6 0 9 2 8 1 . Accurint records do not indicate any marriages or legal name

changes for Mustian.

SA Jones advised Thompson that the Division had identified her as Mina Mustian and she

admitted that she was Mina Mustian, but stated she was also Lyne Thompson. She advised she

married David Thompson 3 3 years ago, but never changed her name. Mustian/Thompson was

unable to advise the city, town, location or any other identifying information as to where she was

married. She could only advise it was somewhere off the coast of F lori d a and she said she did

not require a passport to get to the isl a nd. Mustian/Thompson admitted her NC Drivers l icense ,

her NC Appraisers license , and her NC Real Estate license are all in the name of and signed

"Mina Mustian". Mustian/Thompson agreed to make available to the D i vision a copy of her

marriage license to substantiate her claim. She stated the license was in the p ossession of her

mother-in-law. As of this date Mustian/Thompson has failed to contact or make available to the

Divisi o n any information or documentation to substantiate that she is in fact Lyne Thompson.

At this time, based on information in the D ivision ' s possession and within its knowledge, the

D ivisi o n cannot determine whether B ibbs , while he was not registered as a lobbyist, received

payments for lobbying activities during the 2 0 1 6 legislative session from Mustian/Thompson,

NC Ba i l Academy and/or the Rockford-Cohen Group and, therefore, cannot determine whether

NC Ba i l Academy and/or Rockford-Cohen Group violated the Lobby Act by failing to register

and make timely fil in g s as B i bb s ' principals during the 2 0 1 6 legislative session. The Division

cannot complete its investigation nor issue appropriate and lawful notices of violation, nor assess

fines and penalties, without additional financial information of Mustian/Thompson, NC Bail

Academy and/or Rockford-Cohen Group. The affiants b elieve that information contained in the

financial records of Mustian/Thompson, NC Bail Academy and/or Rockford-Cohen Group will

be relevant to this inquiry and investigation. Additionally, the affiants believe that the financial

records will allow the Division to determine whether Bibbs/LLPC was engaged in lobbying

activities while not properly registered for other persons or entities.

LOBBYING VIOLATIONS

N.C.G.S. 120C-200 states: Lobbyist registration procedure.

(a) A lobbyist shall fi le a separate registration statement for each principal the lob b yist

represents with the Secretary of State before engaging in any lo bby in g. It shall be unlawful for an

12
individual to lobby without registering within one business day of engaging in any lobbying as

defined in G . S . 1 2 0 C - 1 0 0 ( 9 ) unless exempted by this Chapter.

(b) The form of the registration shall be prescribed by the Secretary of State, be filed

electronically, and shall include the registrant's full name, firm, complete address, and telephone

number; the registrant's place of business; the full name, complete address, and telephone

number of each principal the lobbyist represents; and a general description of the matters on

which the registrant expects to act as a lobbyist.

(c) Each lobbyist shall electronically file an amended registration form with the Secretary of

State no later than 1 0 business days after any change in the information supplied in the l o bbyis t's

last registration under subsection (b) of this section. Each supplementary registration shall

include a complete statement of the information that has changed.

(d ) Unless a resignation is filed under G.S. 120C-210, each registration statement of a

lobbyist required under this Chapter shall be effective from the date of fi l i ng until January 1 of

the following year. The lobbyist shall file a new registration statement after that date, and the

applicable fee shall be due and payable.

(e) Each lobbyist shall identify himself or herself as a lobbyist prior to engaging in lobbying

communications or activities with a designated individual . The lobbyist shall also disc l ose the

identity of the lobbyist principal connected to that lobbying communication or activity.

(f) In addition to the information required for registration under subsection (b) of this

section , former employees of a State agency who register as a lobbyist within six months after

voluntary separation or separation for cause from employment with a State agency shall also

indicate which State agency with which the former employee was e m plo y ed. ( 1 9 3 3 , c. 1 1 , s. 2 ;

1 9 7 3 , c. 1451; 1 9 7 5 , c. 82 0, s . 1; 1983, c. 7 1 3 , s. 5 1 ; 1 9 9 1 , c. 74 0 , s. 1 . 1 ; 2 00 4-2 0 3, s. 50( a );

2 0 0 6 - 2 0 1 , s. 1 8 ; 2 0 0 8 - 2 1 3 , s s. 1 3 , 9 0 ; 2 00 9 - 549, s . 3 ; 2 0 1 0 - 1 6 9 , s . 4 (c ); 2 0 1 3 - 3 6 0 , s. 2 7 . l ( c ) . )

CRIMINAL PROVISIONS

N.C.G.S. 120C-602 states: Punishment for violation.

(a) Whoever willfully violates any provision of Article 2 or Article 3 of this Chapter shall be

guilty of a C l a ss 1 misdemeanor, except as provided in those Art icles . In addition, no lobbyist

who is convicted of a violation of the provisions of this Chapter shall in any way act as a lobbyist

for a period of two years from the date of conviction.

(b) In addition to the criminal penalties set forth in this section, the Secretary of State may

levy ci v il fines for a violation of any provision of Articles 2 , 4, or 8 of this Chapter up to five

thousand dollars ($5 , 000 ) per v iolation . In addition to the criminal penalties set forth in this

section , the Commission may levy civil fines for a violation of any provision of this Chapter

except Article 2, 4, or 8 of this Chapter up to five thousand doll a rs ( $5, 0 0 0 ) per violation. ( 1 9 3 3 ,

13
c. 1 1 , s. 8 ; 1 9 7 5 , c. 820, s. 1; 1 9 9 1 , c. 740, s. 1 . 1 ; 1 9 9 3 , c. 5 3 9 , s. 9 1 4 ; 1 9 9 4 , Ex. Sess., c. 24, s.

14(c); 2005-456, s. 1 ; 2 0 0 6 - 2 0 1 , s. 1 8 ; 2006-259, s. 43.5(a).)

N.C.G.S. 120C-206. Lobbyist principal's authorization.

(a) A written authorization signed by the lobbyist principal authorizing the lobbyist to

represent the principal shall be filed with the Secretary of State within 20 (business days after the

lobbyist's registration. If the written authorization is filed more than 20 business days after the

lobbyist's registration and before January 1 of the following year, the lobbyist registration is

effective from the date of filing of the lobbyist registration and all reports due under Article 4 of

this Chapter shall be filed.

(b) The form of the written authorization shall be prescribed by the Secretary of State, be

filed electronically, and shall include the lobbyist principal's full name, complete address, and

telephone number, name and title of any official authorized to sign for the lobbyist principal, and

the name of each lobbyist registered to represent that principal.

(c) An amended authorization shall be electronically filed with the Secretary of State no later

than 1 0 business days after any change in the information on the principal's authorization. Each

supplementary authorization shall include a complete statement of the information that has

changed. ( 1 9 3 3 , c. 1 1 , s. 4; 1 9 6 1 , c. 1 1 5 1 ; 1 9 7 5 , c. 820, s. 1 ; 1 9 9 1 , c. 740, s. 1 . 1 ; 2005-456, s. 1 ;

2 0 0 6 - 2 0 1 , s. 1 8 ; 2007-347, s. 4; 2 0 0 8 - 2 1 3 , s. 9 0 ; 2009-549, s. 4; 2 0 1 3 - 3 6 0 , s. 2 7 . l ( e ) . )

PROBABLE CAUSE TO BELIEVE EVIDENCE OF

THE CRIME IS LOCATED AT UNION BANK

The affiants have not included each and every fact known concerning this investigation. The

affiants have set forth the facts that they believe are necessary to establish probable cause to

believe that the property to be seized supporting violations of Chapter 120C-200 of the N.C.

General Statutes will be found in the Union Bank & Trust Company accounts of Mina Mustian

aka Lyne Thompson aka Lynette Thompson, the NC Bail Academy, LLC and/or RCG.

The Division received information from multiple sources that Mark Bibbs was actively lobbying

on behalf of Lyne Thompson/NCBA and Dallas McClain/Cannon in opposition to SB 5 0 8 as

recently as June 2 8 , 2 0 1 6 without being registered.

The Division records confirmed Bibbs was in fact not registered as a lobbyist for any entity in

2 0 1 6 prior to July 1 5 , 2 0 1 6 , and NCBA was never registered as a Principal at any time in 2 0 1 6 .

In an email Bibbs sent to Thompson and McClain on Feb 1 1 , 2 0 1 6 Bibbs states McClain and

Thompson should speak against SB 5 0 8 in his absence at an upcoming House Committee

meeting. At the time of the email Bibbs was not registered as a lobbyist, and McClain and

Thompson's companies were not registered as principals.

14
Affiant Jones reviewed emails authored and transmitted by Attorney Mark Bibbs that were sent

to legislators, legislative employees, or public servants with the intent to either influence or

attempt to influence legislative or executive action, or both regarding SB 5 0 8 .

Affiant Jones reviewed the transcript of the audio file (recording) obtained related to Bibbs

appearance before the NC Court Commission hearing on February 1 2 , 2 0 1 6 , and the related

signup sheet and attendance records. Affiant Jones noted Bibbs signed in and gave Long Leaf

Pine Consulting (LLPC) as his firm. A review of the associated recording confirms that Bibbs

addressed the Commission and identified himself. Bibbs stated he represented both the NC Bail

Academy and Cannon. The NC Court Commission has several members who are for purposes

of G . S . 1 2 0 C , are considered "covered persons" .

AffiantJones also reviewed the M inutes of H ouse Committee on Ju diciary III or

f ne
Ju 1 5 , 2 0 1 6

and June 2 8 , 2 0 1 6 . The r eview confirmed B i b b s was in attendance and ac tually addressed the

Committee on June 2 8 , 2 0 1 6 . Affiant Jones reviewed the audio record f rom the Ju ne 28, 2 016

meeting and confirmed that Bi b bs spoke in opposition to B

S 5 0 8 and stated he represented

Cannon Surety.

T he fi rst complaining witness stated Bibbs assured him that he w as being well paid, and the

complainant submitted to the D ivision documentation containing text message exchanges

b etween them and B ibbs that support their statement. n one text message
I B ibbs adv ises his f ee

is $10,000 per m onth for 1 2 m onths for 2 years with 5 0 % down. N on-negotiable .

B i b b s has ad mitted he lobbied on behalf of N C B A in 2 0 1 5 , an d B i bb s also admitted NCBA p aid

him f or lobbying n 2015.

i B ibbs d enied lobbying on b ehalf ofNC B A in 2 0 1 6 . However, official

records and audio files from the NC Courts Commission hearing contain evidence that Bibbs did

represent NCBA in 2016. T hompson/NCBA has failed to di s clo s e any payments made to Bi bbs

in 2 0 1 5 on her P rincipal expense report forms to the D ivision.

S A ones searched
J t he SOS C orporation files and discovered that Valentine/All American Bail

B ond s (AABB) paid reinstatement and annual report fees for N CBA and R CG through

V alenti ne 's business (A ABB) financial account located at W ells F argo Bank. O ther fee

payments associated with NCB A and RCG were pa id or by cash or credit card.
f

A search warrant obtained f or that account revealed that AAB B paid Bibbs approximately

$17 ,684.88. T he c heck m emo ines contained

l "O dom case", but Bibbs stated in his interview he

did not recall w orking an O dom case. B i b b s deposited many of the above referenced checks into

a Bank of Am erica a ccount.

T hompson/Mustian admitted she hired B ib b s as a lobbyist for N C B A, an d also admitted to

paying B i b bs in 2 0 1 5 on a monthly basis. S he stated Bi b bs bille d her $6, 000. 0 0 p er month.

T hompson advised she pa id Bibbs approximately $ 20 , 0 0 0 to $ 2 4 , 0 0 0 for lobb ying for N CBA in

2015. T hompson ad vised that some of the payments were made by check, a nd stated she bank s

with U nion Bank in Y oungsville.

T he D i v i s ion di s co v ered evidence that Ly ne T hompson was in fact M ina M ustian. T hompson

admitted in h er interview w ith S A Jones and SA R egister that she was M ina M ustian, but s tated

15
she was also Lyne Thompson by marriage. Mustian/Thompson was unable to give any detailed

information as to the city, town, or location where she was married other than it was in Florida.

Thompson agreed to provide a copy of her marriage license to the Division to substantiate her

claim, but has failed to do so. She has also failed to make any further contact with the Division.

It is currently reasonable to believe that official filings and notarized reports initiated and

submitted by Mustian/Thompson may be fraudulent.

It is reasonable and prudent to expect that the items requested pursuant to this search warrant are

maintained within the custody of Union Bank & Trust Company. United States Treasury and

North Carolina Banking Commission regulations (implementing Title I and Title II of the United

States Public Law 9 1 - 5 0 8 [ 1 2 U . S . C . 1 8 2 9 b ] and 4 N.C.A.C. 3C . 0 9 0 3 implementing N . C . G . S .

5 3 - 1 1 0 , respectively) mandate that the following information on demand (checking) accounts,

savings accounts and time deposit accounts, and credit card accounts be maintained for a period

of five (5) years:

a. signature cards;

b. statements, ledger cards, or other records disclosing all account transactions both deposit

and withdrawal; and

c. copies of all checks, drafts, electronic wires, money orders and cashier's checks drawn

from or against funds within each account.

Further, it is required that the following information be maintained for a period of two (2) years:

a. all documents necessary to reconstruct activity within a checking

account including copies of deposit tickets; and

b. all documents necessary to trace and supply the description of a

check or other item deposited into a checking account

c. all documents necessary to trace and supply the description of a

check or other item deposited into a checking account

Therefore, the affiants have probable cause to believe that the property to be seized will be found

in the Union Bank & Trust Company accounts of Mina Mustian aka Lyne Thompson aka Lynette

Thompson, and/or the accounts of NC Bail Academy, LLC and/or the accounts ofRockford

Cohen Group, LLC.

The affiants also have probable cause to bel ieve that Mustain/Thompson, the NC Bail Academy,

the Rockford-Cohen Group, Dallas McClain and/or Cannon paid Mark Bibbs for his services as a

lobbyist to oppose SB 5 0 8 while Mark Bibbs was not registered as a lobbyist, and NC Bail

Academy and Cannon were not registered as principals in violation o f N . C . G . S . 120C-200(a).

The affiants are aware that evidence of such criminal violations is usually found within the bank

financial records of accounts used by the perpetrators, and/or their co-conspirators, and that such

perpetrators, and/or co-conspirators often maintain accounts through which transactions related

to these schemes flow. Evidence related to the identification of culpable involved parties and to

the full scope and nature of the scheme is also routinely found in the bank records of the

perpetrators, and their co-conspirators.

16
Therefore, the affiants respectfully request the Court to issue a warrant directing a search for and

seizure of items sought herein.

Qt
N01th Carolina Department of the Secretary of State

Sworn' and subsce this,

the day of . , 2017

Juk

17
 File No.

STATE OF N O R T H C A R O L I N A

I n The General Court Of Justice

WAKE County D District Ix] Superior Court Division

IN THE MATTER OF:

Name

INVENTORY OF ITEMS SEIZED

Mina Lynette Mustian

PURSUANT TO SEARCH

G . S . 15A-223, 15A-254. -257

I , the undersigned officer, executed a search of:

Person, Premises Or Vehicle Searched Date Of Search

Union Bank and Trust Company, 7 0 1 Mutual Court, Raleigh NC 27604 03-07-2017

This search was made pursuant to

Ix] 1. a search warrant issued by: Superior Court Judge Donald W. Stephens

D 2. consent to search given by:

---------------------
D 3. other legal justification for the search: --------------------------

The following items were seized:

NOTE: This is a search warrant for bank records. Additional inventory sheets will be filed with the court once the records are

received.

(Over)

AOC-CR-206, Rev. 5/98 Original - File Copy - Person Whose Property Seized

1 9 9 8 Administrative Office of the Courts

 Items Seized Continued:

!Kl 1 . I left a copy of this inventory with the person named below, who is:

D a. the owner of the premises searched.

D b. the owner of the vehicle searched.

!Kl c. the person in apparent control of the premises searched.

D d. the person in apparent control of the vehicle searched.

D e. the person from whom the items were taken.

D 2. As no person was present, I left a copy of this inventory:

D a. in the premises searched, identified on the reverse.

D b. in the vehicle searched, i d e n t i fi e d on the reverse.

7-4;d7K)erh;; i, Mv;;t:Of o;;:;ny I tJ /1 // f cJ-!rvs;,+

70 U4 (] UK n / -e

A C K N O W L E D G M E N T OF R E C E I P T

I, the undersigned, received a copy of this i n v e n t o ry .

Date Signature of Person Receiving Inventory

AOC-CR-206, Side Two, Rev. 5/98

1 9 9 8 Administrative Office of the Courts

 r : r:.- , ...1
r

. ' . . . I

STATE OF NORTH CAROLINA . .IN.THE GENERAL COURT OF JUSTICE

COUNTY OF WAKE 2 0 ! 7 JUfJ-6 PiJ8P.Jt-IOR COURT DIVISION

/,.. ." -.:. : - . ! ! 'i ',! r- C' r"

' I I V , , ) , l, .

IN RE: INVESTIGATION BY N.C. )

SECRETARY OF STATE IN THEY .. C..J::B..__ ORDER

MATTER OF MARK BIBBS/LONG LEA "i.Jnion Bank & Trust Co. Records

PINE CONSULTING, LLC )

THIS CAUSE HA YING COME ON TO BE HEARD upon oral motion of the State regarding

documents produced as a response to a search warrant, and it appearing that:

1. On March 7, 2 0 1 7 in Wake County, a search warrant was issued in the matter of Mark

Bibbs/Long Leaf Pine Consulting, LLC, and Mina Lynette Mustian pertaining to an ongoing

investigation being conducted by the N.C. Secretary of State.

2. That no one has been charged with any crime and that the investigation is o n g o i n g .

3.That information included in the search warrant, any attachments, application

for search, the inventories of items seized, and the return includes sensitive

information which is the subject of an on-going investigation.

4.That the interest of justice will best be served by temporarily m a i n t a i n i n g

the secrecy of said warrant, any attachments, return, application for search, the

inventories of items seized, the Motion and Order.

5.That to p u b l i c l y disclose the basis for the search warrant, or the inventory of

those matters recovered from this location might h a m p e r or i m p e d e this

investigation and/or may release information that could adversely affect persons

who are not charged with committing a crime and materially prejudice further

ajudicable procedures i n v o l v i n g this investigation and any s u b s e q u e n t

prosecution and will jeopardize the right of the state to prosecute a defendant or

the right of the defendant to receive a fair trial or will u n d e r m i n e an o n g o i n g

investigation.

6.The information g a i n e d in the execution of this search warrant h a s been of

substantial investigative v a l u e , l e a d i n g to other searches, and that this entire

investigation is an active process at t h i s t i m e .

It is therefore O R D E R E D that the application and search warrant, issued on the above

referenced date, and the return therefore, and this Motion beealed by the C o u rt and the

contents thereof not released for an a d d i t i o n a l period of days, with leave to request an

additional period u p o n showing of good cause.

 /,
This, the_(.//_ day of J u n e , 2 0 1 7 .
./

STATE OF NORTH CAROLINA IN THE GENERAL COURT OF JUSTICE

20!7 MAR - 7 AM IO: 2:.1

WAKE COUNTY SUPERIOR COURT DIVISION

IN THE MA TIER OF: ORDER TO SEAL

SEARCH WARRANT

Investigation by &

North Carolina Secretary of State, ACCOMPANYING

Lobbying Compliance Division DOCUMENTS

THIS CAUSE HAVING COME ON TO BE HEARD before the Judge Presiding, and it

appearing to the Court the following:

1. The North Carolina Department of the Secretary of State, Lobbying Compliance

Division, (the "Division"), is conducting an ongoing confidential criminal

investigation regarding allegations of the commission of violations of Chapter 1 2 0 C

Article 2 of the North Carolina Lobbying Statute, specifically N . C . G . S . 120C-200(a)

(Lobbyist registration procedure).

2. No one has been charged with any crime reference File#2016-02, and the

investigation is ongoing.

3. Investigators with the North Carolina Department of the Secretary of State applied for

two search warrants contemporaneously herewith to search records of individuals

being investigated for violations ofN.C. G . S . 120C-200 (a) on March 6, 2 0 1 7 .

4. The search warrants for these records were granted today, March 7, 2 0 1 7 , by the

undersigned Superior Court Judge, and was executed the same day.

5. The application for the search warrants, search warrants and returns, accompanying

affidavits, Motion to Seal Search Warrant and Accompanying Documents, and Order

to Seal Search Warrant and Accompanying Documents contain very sensitive and

confidential information.

6. That the success of this investigation by the North Carolina Department of the

Secretary of State may be hindered by the publishing, at this time, of the contents of

the applications and warrants and returns thereof, this Motion and Order in the several

manners described in the State's Motion to Seal.

7. That the interest of justice will best be served by temporarily maintaining the secrecy

of said warrants, any attachments, return, application for search, the inventories of

items seized, the Motion and Order.

8. That to publicly disclose the basis for the search warrants, or the inventory of those

matters recovered from this location might hamper or impede this investigation
 and/or may release information that could adversely affect persons who are not

charged with committing a crime and materially prejudice further adjudicable

procedures involving this investigation and any subsequent prosecution and will

jeopardize the right of the state to prosecute a defendant or the right of the defendant

to receive a fair trial or will undermine an ongoing investigation.

It is therefore ORDERED that the applications, search warrants and accompanying affidavits

issued on the above referenced date, and the returns therefore, and this Motion and Order be

sealed by the Court and the contents thereof not releaseiuntil further order by the Court.

lj tJ s Q I!--

This the 7th day of March, 2 0 1 7 .

Senior Resident Superior Court Judge

.. -

STATE OF NORTH CAROLINA . IN 1JIB GENERAL COURT OF WSTICE

WAKE COUNTY 2017 MAR - 7 . AM ID: 2sJr.JpERIOR COURTDIVISION

SC.
IN THE MATTER OF: MOTION TO SEAL

SEARCH WARRANTS

Investigation by &

North Carolina Secretary of State, ACCOMPANYING

Lobbying Compliance Division DOCUMENTS

NOW COMES the North Carolina Department of the Secretary of State, by and through .

the undersigned Assistant Attorney General, pursuant to North Carolina General Statutes 132-

1 . 4 ( e) and (k), and respectfully prays the Court to issue an Order requiring that the applications

for search warrants, search warrants and returns, accompanying affidavits and documents,

submitted contemporaneously herewith, along with this Motion and the resulting Order, be .

sealed in the Office of the Clerk of Superior Court for Wake County until further order of the

court. The State shows the following:

1. The North Carolina Department of the Secretary of State, Lobbying Compliance

Division, is conducting an ongoing confidential criminal investigation regarding allegations of

the commission ofviolation(s) of Chapter 120C Article 2, N.C. Gen. Stat. 120C-200 (Lobbyist

registration procedure) of the North Carolina Lobbying Law, said violation(s) believed to be

committed by certain individuals or entities identified in the search warrants.

2. No person or entity has been charged with any crime referenced in Lobbying

Compliance Division File #2016-02, and the investigation is ongoing .

.3 . As a result of this investigation, two search warrants have been obtained

contemporaneously herewith and will be executed without unnecessary delay.

4. The applications for the search warrants.the search warrants and returns, and the

accompanying affidavits and documentscontain sensitive and confidential information.

. .

5. The release of the above-mentioned documents to the public at this time would

jeopardize the Division's ongoing criminal investigation and possibly result in evasive actions by

the subjects of the investigation and other interested persons, and the destruction or secreting of

evidence related to this matter.

6. It is in the best interest of justice and would afford protection to all parties. if the

above-mentioned documents were sealed in the Office of the Clerk of Superior Court for Wake

County until ,further order of the Court.

7. The state's interest in continuing this ongoing confidential investigation is

compelling and outweighs any interest by the press or public in having access to the above

mentioned documents until further order of the Court.

. 1
 8. While other alternatives have been considered, sealing of the application for the

search warrants, the search warrants and returns, accompanying affidavits and documents, and I

this Motion and the resulting Order, is essential to preserve higher values and is narrowly

tailored to serve that interest.

This the J day of March, 2 0 1 6 .

Jere

Ass stant Atto eneral

North Carolina Department of Justice

On behalf of the North Carolina Department

of the Secretary of State

P.O. Box 629

Raleigh, NC 27602-0629

T: (919) 7 1 6 - 6 6 1 0

F: (919) 7 1 6 - 6 7 5 7

jlindsley.ncdoj .g(?V

Wake County District Attorney Acknowledgement

The undersigned hereby acknowledges that the foregoing Motion has been reviewed by the

Office of the Wake County District Attorney and that said office does not oppose the Motion.

This t, ay of March 2 0 1 7 .

d/4
k-ings
l " Assistant District Attorney