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 File No.

STATE O F NORTH C A R O L I N A

I n The General C o u rt Of Justice

Wake County D District Ii] S u p e r i o r C o u rt D i v i s i o n

IN THE MATTER OF:

Name

INVENTORY OF ITEMS SEIZED

Capital Bank - Cannon Surety, LLC

PURSUANT TO SEARCH

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

I , t h e u n d e r s i g n e d officer, executed a search of:

Person, Premises Or Vehicle Searched Dale Of Search

Capital Bank 09-07-2016

3 3 3 Fayetteville Street, Raleigh, NC

T h i s search was made p u r s u a n t to

Ii] 1. aseahwarrantissuedby: _S
u
pe
_ r
_ o
i_r
_ C_o
_ u
_ rt
_ J
_ u
d
ge
_P_
_.R__
id
g
e_w_a
_ y

D 2. c o n s e n t to search g i v e n by:

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

T h e f o l l o w i n g items were s e i z e d :

NOTE: This was a search warrant for bank records. The warrant was served on 9 - 0 7 - 2 0 1 6 . On 9 - 1 3 - 2 0 1 6 an electronic response was

received from Capital Bank containing financial records. The response was incomplete. Additional inventory sheets w i l l 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:

Ii] 1 . I left a copy of this i n v e n t o ry with the person named below, who is:

O a. the owner of the premises searched.

D b. the owner of the vehicle searched.

Ii] c. the person in apparent control of the premises searched.

O 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 l e ft a copy of this i n v e n t o ry :

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

D b. in the vehicle searched, identified on the reverse.

Name And Address Of Person To Whom A Copy Of This Inventory Was Delivered, If Any

Jennifer Pittman (Personal Banker)

3 3 3 Fayetteville Street, Raleigh, NC

The law enforcement agency identified below will hold the seized p r o p e rt y subject to c o u rt order.

Signature Of Law Enforcement Officer

SWORN A N D S U B S C R I B E D TO B E F O R E ME
A.
Title Of Law Ekforcement Officer

Special Agent

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

 File No.

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

I n The G e nera l C o u rt Of Justice

Wake County D District oc] S u p e r i o r C o u rt D i v i s i o n

IN THE MATTER OF:

Name

INVENTORY OF ITEMS SEIZED

Capital Bank - Cannon Surety, LLC

PURSUANT TO SEARCH

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

I , the u n d e r s i g n e d officer, executed a search of:

Person, Premises Or Vehicle Searched Date Of Search

Capital Bank 09-07-2016

3 3 3 Fayetteville Street, Raleigh, NC

T h i s search was made p u r s u a n t to

oc] 1. a search warrant i s s u e d by: S

_ u
pe
_ r
_ o
i_r
_ C_o
_ u
_ rt
_ J
_ u
d
g=e
_ P
__
.'R__
id
g
e_w_a
_ y

D 2. c o n s e n t to search g i v e n by:
-----------------------------
D 3. other l e g a l j u s t i fi c a t i o n for the search:---------------------------

The following items were s e i z e d :

NOTE: This was a search warrant for bank records. Additional inventory sheets w i l l be filed with the court once the records are

received.

(Over)
AOC-CR-206, Rev. 5/98
Original - File Copy - Person Whose Property Seized
= "" 0 Arlministrat1ve Office of the Courts
 Items Seized Continued:

Ii] 1 . I left a copy of this i n v e n t o ry with the person named below, who is:

O a. the owner of the premises searched.

O b. the owner of the vehicle searched.

Ii] c. the person in apparent control of the premises searched.

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

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

O 2. As no person was present, I l e ft a copy of this i n v e n t o ry :

O a. in the premises searched, i d e n t i fi e d on the reverse.

O b. in the vehicle searched, identified on the reverse.

Name And Address Of Person To Whom A Copy Of This Inventory Was Delivered. If Any

Jennifer Pittman (Personal Banker)

3 3 3 Fayetteville Street, Raleigh, NC

The law enforcement agency identified below will hold the seized p r o p e rt y subject to c o u rt order.

SWORN A N D S U B S C R I B E D TO B E F O R E ME

Special Agent

Name And Address Of Agency

hb;,.,.G-f?9ic-- North Carolina Department of the Secretary of State

e 2 South Salisbury Street, Raleigh, NC 2 7 6 0 1

rk Of Superior Court O Magistrate

::,;;"

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, S i d e Two, Rev. 5/98

1 9 9 8 Administrative Office of the Courts

 APPLICATION FOR SEARCH WARRANT

In the Matter of

Cannon Surety, LLC

Premier Judicial Consultants, LLC

Mark L. Bibbs

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

statements of account(s), deposit tickets and credits, items of deposit, offset items, ledgers,

statements, stubs, drafts from other banks or financial institutions, confirmations of wire

transfers or any other wire transfer records documenting deposits of 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) and credit card accounts in the name of, or controlled by, the

following persons or entities:

Cannon Surety, LLC

Premier Judicial Consultants, LLC

Mark L. Bibbs

At Capital Bank, for the period extending from January 1, 2015 through present date,

including but not limited to any and all accounts both open and closed held in the name of

Cannon Surety, LLC and/or Premier Judicial Consultants, LLC at Capital Bank.
APPLICATION FOR SEARCH WARRANT

In the Matter of

Cannon Surety, LLC

Premier Judicial Consultants, LLC
Mark L. Bibbs

. ATTACHMENT II

PREM/SES TO BE SEARCHED

Capital Bank

3 3 3 Fayetteville S t . , Suite 7 0 0

Raleigh, NC 2 7 6 0 1

2
 APPLICATION FOR SEARCH WARRANT

In the Matter of

Cannon Surety, LLC

Premier Judicial Consultants, LLC

Mark L. Bibbs

ATTACHMENT III

AFFIDAVIT TO ESTABLISH PROBABLE CAUSE

I, the undersigned affiant, A. H. Jones, have been a Law Enforcement Officer for over t h i rt y

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. 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,

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

3
 The North Carolina Department of the Secretary of State 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 began receiving numerous inquiries

regarding whether Attorney Mark L. Bibbs was registered as a Lobbyist for Cannon Surety LLC

(Cannon). Cannon is a surety company for bail bondsmen. In this regard, Division employees

received phone calls or emails from Mark Cartret (Agent Associates Insurance Group), Melissa

Seiler (North Carolina Bail Agents Association), Phillip Bradshaw (East Coast Sureties Inc.) , and

R obert Brawley (Cannon Surety). In response to the inquiries the Division database ( files) wer e

searched and it was confirmed that Bibbs was not registered to lobby for 20 16.

Dallas McClain (Cannon's designated Authorized cer

Offi for G .S. 12 0C purposes) called the

Division on Jul y 5, 20 1 6 and asked questions related to lobbying in 20 1 6 on an expired registration.

On the same date McClain called back a second tim e and asked what would happen if a subject was

found to be lobbying without registration. During thi s call McClain stated that Cannon ' s lobbyist

m ay be lobbying wi thout being registered for 2 0 1 6 . McClain w as instructed to send an email

explaining the situation in wri ting. McClain called e Division a third

th tim e and ked for
as the email

address and to whom he should address the email. The Division received the f ollowing email e
th

following day stating he wanted to correct a registration deficiency:

From: duhkingfish <duhkingfish@yahoo .com>

To: Joal Broun <j broun @s osnc.co m>

Date: 7/5/2016 4:46 PM

Subject: registration

G ood aft ernoon,

I am wri ting to try to correct a registration deficiency. I was un der e

th impression that our

registration carried us thr ough the 'short session' of legislating and have found out otherwise.

Mark L. Bibbs was our lobbyist thr oughout 2 0 1 5 and our last zero expense form was posted in

J anuary 2 0 1 6 . W e would like to correct s oversight and are seeking your

thi gu idance in doing so .

W e would like to make sure w e are current thr ough Dec 2 0 1 6 .

4
 Please instruct me how to proceed to correct this. I understand from the office staff you should

receive an email from the lobbyist himself as well as the principal, and that is being done as we

speak.

Thank you for your effort. Regards,

Dallas McClainCannon Surety (principal)

On July 6, 2 0 1 6 the Division received the following email from Mark Bibbs stating that he was

writing to try to correct a lobbying registration deficiency:

From: Mark Bibbs <longleafpineconsultlng@gmail.com>

To! Joai Broun <jb:roun@sosnc,cpm> .

CC: <dallas@osurety.com>, "duhklngfish@yahoo.comH <duhkingfish@yahoo.com>

Date: 7/6/2016 12:26 PM

Subject: LobbyistRegistration for Cannon Surety; lLG

Ms. Broun,

Good afternoon. I am writing to try to correcta lobbying registration

deficiency. I was under the impression that our registration last

year carried us through the entire 2.01;5-.21_6 Sess.)on.of the General . .

Assembly and. have now found out otherwise. I believe you have rece 1ved a

simiiar correspondence from my principal - Cannon Surety, L;LC.

I served as Cannon's lobbyist in the 2015. Long Session and the 2016 Snrt

Session ofihe .General Assembly. Both of us should be registered throughout

the-remalnder of the 2 0 1 6 cafendar year. We would like to correct this.

oversight inimedfately. We would like to make sure w_e are curre_nt, in good

staridirig and in compliance with all rules and regulations regar.dmg

lobbyln'!;J through December of 2016.

I am assuming I will be copied on an email to the principal as to the

proper actions, We. look forward to actihg forthwith upon yourdlrectlon.

Thanlc you.

Kindest Regards,

Mark L. Bibbs

aa:a ,.,,.,

On August 4, 2 0 1 6 , Mark Cartret sent the Division an email containing a link to a WBTV station

internet article regarding some individuals from a company that accompanied Bibbs while he

lobbied inside the General Assembly during the last session of the General Assembly. On August 8,

2 0 1 6 , the Division became aware of another news story released Friday August 5, 2 0 1 6 , by WBTV

(Charlotte). The second news story contained information on allegations that Bibbs was lobbying

while not being registered. The piece was titled "Lobbying complaint filed against lawyer with ties

to Speaker, Insurance Commissioner." The reporter named former State Representative Clyde

Robert Brawley (Brawley) as the individual who had reportedly filed a formal complaint against

Bibbs with the State Ethics Commission and the Secretary of State. However, the Division had not

yet received any complaint from Brawley regarding Bibbs, only inquiries about his registration

status. The reporter's interview and a draft copy of Brawley's complaint to the Division were

available on the WBTV website along with several emails that appear to have been authored by

Bibbs. The lobbying complaint form did not contain a date or written signature, but an

5
accompanying letter addressed to the State Ethics Commission and also to the Lobbying

Compliance Division of the Department of the Secretary of State was dated July 27, 2 0 1 6 , and

contained Brawley' s typed name.

In the complaint Brawley stated that Bibbs has appeared more than once at the NC General

Assembly claiming to represent Cannon. Brawley advised that in 2 0 1 6 Bibbs was openly lobbying

against Senate Bill 5 0 8 (SB 508). These emails also indicated Bibbs sent advertisements via email

soliciting clients using a reported association with Cannon as a business reference.

SA Jones found six emails included with Brawley's complaint found on the WBTV website and

later submitted to the I)ivision by Brawley that indicate Bibbs sent out advertising for his legal

services that contain: "Lawyer and Lobbyist for the North Carolina Bail Academy and Cannon

Surety, LLC." The .emails are dated May 1 6 , 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 the emails were distributed during a time period the Division's

records indicate Bibbs was not registered to lobby, and Cannon and North Carolina Bail Academy

(NCBA) were not registered as lobbyist principals, pursuant to G.S. 120C. See below:

From: Bibbs Law Group <bibbslawgroup(a),gmail.com>

Date:May 1 1 , 2 0 1 6 at PMEDT

To:

Subject: TIDS IS AN ADVERTISEMENT FOR LEGAL SERVICES

Reply-To: <bibbslawgroup@gmail.com>

bcaxbe This message is eligible for Automatic Cleanup! (bibbslawgroup@gmail.com) Add

cleanup rule I More info

Bibbs Law Group

ThisisanAdvertisement for Legal Services

May 11th, 2016

Free conarltation forBailAgentswho have matters before the North

Carolina Department oflnsurance

Bibbs Law Group

OVER 1 6 Y EA R S O F S T A T E WI D E B A I L

AGENT LEGAL REPRESENTATION.

LAWYER AND LOBBYIST FOR T H E NORTH CAROUNA BAIL

ACADEMY A N D C A N N O N S U R E TY , LLC.

6
 LOBBYIST FOR BAIL BOND ISSUES BEFORE THE NORTH

CAROUNA GENERAL ASSEMBLY

In the recorded interview and written complaint Brawley states that Bibbs did not have proper

authorization from Cannon's (board) to engage in lobbying for Cannon. He complained that

Cannon's President (Dallas McClain) also did not have the authority to hire a lobbyist without the

participation of all members. He advised that McClain was with the unregistered Bibbs several

times when Bibbs lobbied against SB 508 on behalf of Cannon during committee meetings.

Brawley states he supports SB 508.

In addition to McClain's association with Cannon, Brawley states McClain is also a principal of

NCBA, and partners with Lyne Thompson. Lyne Thompson is the General Manager and registered

agent of NCBA, one of four original members of Cannon, and registered agent, organizer and

member of The Rockford-Cohen Group. Available information indicates the NCBA is a subsidiary

of the Rockford-Cohen Group. Brawley advised in his complaint that Thompson has also addressed

the Legislative Committee regarding opposition to SB 508.

On July 27, 2 0 1 6 , the Division received an email from Mark Cartret stating he was drafting a formal

complaint against Mark Bibbs. On the same date the Division received another email from Cartret

containing a lobbying complaint addressed to the State Ethics Commission and the Secretary of

State. Cartret also made available numerous emails including many email exchanges between

himself and Bibbs. One email sent by Bibbs to Dallas McClain and Lyne Thompson was d a t e d .

February 1 1 , 2016. The email was Carbon copied to Kim Crouch -NC Bar Association Lobbyist

and others. The email clearly shows the relationship between Bibbs, McClain, and Thompson, and

their involvement in lobbying against SB 5 0 8 . In the email Bibbs tells McClain and Thompson they

should speak against SB 508 in his absence. See 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 l l:40AM

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

Cc: Leanne Winner <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 w e l l . He can't be there tomorrow either, however, he w i l l 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 !

All m y very best regards,

Mark L. B i b b s

Dallas McClain responded with the following email:

On Feb 1 1 , 2 0 1 6 , at 1 1 :45 AM, duhkingfish <duhkingfish@yahoo.com> wrote:

ten four consigliere.

7
The Brawley complaint filed with the Division describes supporting documentation against Bibbs

and includes mention of the existence of recorded transcripts of SB 5 0 8 committee meetings at the

NC General Assembly. There is also a reference to Wake County Court complaint 16CV009228

filed by Bibbs on July 1 9 , 2 0 1 6 on behalf of Plaintiff's Rockford-Cohen Group, LLC "RCG" and

Lynette Thompson.

The emails attached to the filed Brawley complaint did appear to contain information substantiating

lobbying by Bibbs during a time period he was not registered. The following excerpts were copied

from Bibbs June 27, 2016 email to the members of the House of Representative Judiciary III

Committee:

From: Mark Bibbs <bibbslawgroup(a),gmail.com>

Date: J u n e 2 7 , 2 0 1 6 a t 8 : 1 4 : 4 2 P M E D T

To: ted.davis@ncleg.net, sarah.stevens@ncleg.net, duane.hall(d),ncleg.net, rena.tumer@ncleg.net,

john.hell(alncleg.net,ravne.hrown@ncleg.net, george.cleveland@ncleg.ne!,jean.farmer-butterfield(

d),ncleg.net, kelly hastings(a),ncleg.net, craig.hom@ncleg.net. verla.insko<@ncleg.net,

chris.sgro@,ncleg.net, michael.speciale@ncleg.net, lee.zachary@ncleg.net, "Rep. Pricey Harrison"

<Pricey.Harrisonr@ncleg.net>

Subject: Re: Opposition To PCS for Senate Bill 508 - A BAD BAD BILL

Members of the House Judiciary IIICommittee:

Except from closing:

In conclusion, Senate Bill 508 is a BAD BILL in every respect. N O P ARTS of it should pass and be allowed

to become law. I am happy to answer any of your questions regarding our opposition to this bill. Feel free to call

me on any of the numbers listed below.

All my very best regards,

Mark L. Bibbs Bibbs Law Group

The following two partial emails are further examples of Bibbs lobbying efforts:

From: Mark Bibbs <bibbslawgroup@gmail.com>

Date: June 28, 2 0 1 6 at 8 : 1 0 : 1 0 AM EDT

To: Sarah.Stevens(a).ncleg.net, ted.davis@.ncleg.net, nathan .baskerville@ncleg .net, duane .hall@ncleg . net,

"Rep. Pricey Harrison" <Pricey.Harrisonr@ncleg.net>, lee.zachary@ncleg.net. rena.turner@ncleg.net

Cc: Tim Moore .::;tim.moore@ncleg J!et>, Leo Daughtry <leo.daughtry@ncleg .net>, robert.reives@ncleg.net ,

Paul.Stam@ncleg.net, mickey.michaux@ncleg.net, darren.jackson@ncleg.net, larrv.hall@ncleg.net,

grier.martin@ncleg.net, john.bl ust@ncleg.net. jonathan.jordan@ncleg.net, chuck.mcgrady(@,ncleg.net,

brad.salmon(@,ncleg.ne t, william.richardson@ncleg.net , hugh.blackwell@ncJeg.net, rob.bryanc@ncleg.net,

dan.bishop@ncleg.net, David Lewis <davidL@davidlewis.org>, david.lewis@ncleg.net

Subject: Attorneys on .Judiciary ID and Attorney Members of the House

Fellow Lawyers and Madam Clerk:

I wanted to ask you to vote against the PCS for Senate Bill 508 for another reason. Our legal profession is

regulated by the North Carolina State Bar as you know only too well.

8
 From: Mark Bibbs <hibbslawgroup@gm:iil.com>

DaterJune i4. 2016 at 8:35:47 PM EDT

To: denning@ncbar.org .

SuJ;ijcct: Logic, Reason & Common Sense Opposition to SB 508

. Representative,

I wanted to further explain why Senate Bill 508 is a terrible piece of proposed legislation, a

poorly drafted and ill conceived idea that should be void as amatter public policy:

WhenJ was a first year law student at UNG-Chapel Hill 24 years ago in 1992, we-were taught
about a legal phrase that .the United States Supreme Court established in the case of International

Shoe Company vs. Washington. That phrase is the notion of '"fait: play and substantial Justice,":

Now howdoes that apply here to Senate BilJ. 508 you might ask? Because our court system and

oursense ofjustice' only works when all the actors in North Carolina's Uniform Court System arc
treated equally, fairly and play by the same rules.

Today an email blast: was sent out by the North Carolina. Bail Agents Association {NCBAA)

supporting Senate Bill 508. That's the same group that you may remember sought passage.of an
unfair law back in 2012 that created a monopoly for them to be the sole approved provider of

Continuing Education for all bail bondsmen in North Carolina.

One o :t m yclie n ts sued the NCBAA, andthe courts of ourState found that Jaw, which was

passed.at the last.minute in. J urie of the Short' Session of 20 I 2,.aroun41his same time.frame,

violated the North Carolina State Constitution by creating an unconstitutional monopoly.

The Division obtained copies of the Minutes of House Committee on Judiciary III, for the June 1 5 ,

2 0 1 6 and June 28, 2 0 1 6 hearings along with the associated signup sheets.

An examination of the signup sheets revealed that Mark Bibbs signed in on June 1 5 , 2 0 1 6 , showing

his firm as "LLPC" (Long Leaf Pine Consulting), and on June 28, 2 d 1 6 Bibbs signed in and gave

"BLG" (Bibbs Law Group) as his firm. Dallas McClain and Lyne Thompson were also present.

McClain listed Cannon Surety as his firm, and Thompson listed NC Bail Academy.

In addition to the signup sheets detailing Bibbs presence at the two hearings stated above the

Division also obtained a copy of the recording that captured the hearing on June 2 8 , 2 0 1 6 . A review

of the recording revealed at 5 1 : 1 1 into the recording Bibbs was recognized by the Committee Co

Chair (Rep. Sarah Stevens). Bibbs began by identifying himself and then stating that he had spoken

to "you" (referring to the committee) about the bill before "last September when the 36 month

provision was still there." He states he represents Cannon Surety a captive insurance company in

Greensboro, NC. Bibbs goes on to state that they have strong objections to all of Section 3, etc.

Bibbs was clearly lobbying in opposition to SB 5 0 8 .

Lobbying Compliance Division Case 2016-02 was initiated after the Division determined there was

sufficient evidence to support an investigation. The purpose of the investigation is to determine

whether any violations of N . C . G . S . 120C-200 had in fact occurred involving Bibbs and Cannon.

North Carolina Department of the Secretary of State Special Agent A . H . Jones (SA Jones) was

assigned to the investigation.

9
 On August 8, 2 0 1 6 at approximately 5:00pm Brawley was contacted by the Division regarding

the news story and the reported lobbying complaint. Brawley advised he would submit a copy of

the complaint to the Division.

SA Jones discovered the Division's record contains documents confirming that Bibbs was not

registered in 2 0 1 6 prior to July 1 5 , 2 0 1 6 . On July 8, 2 0 1 6 , Dallas McClain submitted a Principal

registration for Cannon indicating Mark L. Bibbs (Long Leaf Pine Consulting, LLC) as their

lobbyist. On July 1 5 , 2 0 1 6 , Bibbs registered as a lobbyist for Cannon. Bibbs' previous lobbyist

registration for Cannon expired on December 3 1 , 2 0 1 5 .

Bibbs' file with the Division contains documents showing he originally registered as a lobbyist

for the NC Bail Academy (NCBA) and Cannon on February 2, 2 0 1 _ 5 . On that same date the

NCBA and Cannon registered as a principals, designating Mark Bibbs as their lobbyist. On

May 1 3 , 2 0 1 5 , Bibbs personally visited the lobbying compliance division office and requested

the forms to resign from representing principals NCBA and Cannon. A Division employee

obtained the proper forms for Bibbs, and he then completed the forms and submitted them to

Division personnel while in the lobbying office. Bibbs' resignation as lobbyist for Cannon and

NCBA became effective on May 1 3 , 2 0 1 5 . A copy of the resignation form signed by Bibbs is on

file.

On May 1 4 , 2 0 1 5 the Division sent a computer generated email to Bibbs acknowledging that the

lobbying relationship between NCBA and Mark Bibbs no longer existed. On June 1 , 2 0 1 5 , Mark

Bibbs sent an email in response to the Division's May 1 4 , 2 0 1 5 email stating that the resignation

was in error.

June 2, 2 0 1 5 Bibbs called the Division inquiring about who filed the resignations on his behalf.

Division employee (Sinigur) spoke with Bibbs and made notes of the call in the official database.

Bibbs asked about the needed forms to cancel the two resignations for NCBA and Cannon.

Bibbs stated he did not file the resignations in the Lobbying Compliance Division office and

advised the resignations were done in error. Bibbs alleged it was his unnamed administrative

assistant that came in our office on May 1 3 , 2 0 1 5 . He requested that the Division cancel the two .

resignations stating that he did not intend to resign. During this call Bibbs made mention about

a payment issue with the principal and stated that he planned to resign after getting a check from

the principal.

On June 3 , 2 0 _ 1 5 , Bibbs registered as a lobbyist for Michael Horwin, MA, JD, LLC. On June 5,

2 0 1 5 , the Division Director (Joal Broun) emailed and also mailed a letter to Bibbs outlining the

facts the Division had about his resignations which were in conflict with his June 2 0 1 5 version of

resignation events. Broun asked Bibbs for further information and clarification regarding the

resignations. On June 9, 2015, Bibbs sent an email withdrawing his request to rescind the

resignations.

However, on July 3 0 , 2 0 1 5 the NCBA registered as a principal and indicated that Mark Bibbs

was their lobbyist. NCBA is a subsidiary of the Rockford-Cohen Group. The Rockford-Cohen

Group lists Lyne Thompson as the company's organizer, member, and registered agent.

10
 Then on August 26, 2 0 1 5 , Division employee Smith received phones calls from Michael Mann

. (Lobbyists & Advisors section of NC Bail Bondsmen Association), and Melissa Seiler

(Executive Director of NC Bail Bondsmen Association) asking if Mark Bibbs was a registered

lobbyist for Cannon Surety. Seiler advised Smith that Bibbs told her he was still lobbying on

behalf of Cannon Surety.

The next day (August 27, 2 0 1 5 ) Cannon Surety filed a Principal Authorization designating Mark

Bibbs as its lobbyist, and on the same date Mark Bibbs filed a Lobbyist registration designating

Cannon Surety as the Principal. The lobbyist principal and the lobbyist registration submitted on

August 27, 2 0 1 5 both expired at midnight on December 3 1 , 2 0 1 5 . As stated above, Bibbs did

not again register as a lobbyist for Cannon again until July 1 5 , 2 0 1 6 ten days after the Division

began receiving numerous inquiries about his lobbying status.

On August 30, 2 0 1 6 , SA Jones contacted Mark Cartret by phone regarding his complaint and to

arrange an interview. An appointment was made and Cartret confirmed with Jones the items he

had stated in his complaint. Carteret stated it all began after he was copied on an email sent out

by Bibbs regarding Bibbs opposition to SB 508. Cartret states he asked Bibbs who he was

representing and he replied "Cannon Surety." Cartret advised his next call was to Cannon's

secretary (Robert Brawley) who advised no lobbying representation contract had been executed

between Cannon and Bibbs. Cartret stated that when he informed Bibbs of this conversation

with Brawley, and Brawley's claim to be in favor of SB 5 0 8 , Bibbs became irate calling Brawley

senile and stating he would have Brawley locked up and reviewed for mental incapacitation if he

" f* * * * d " with him.

Cartret stated Bibbs told him he had been "well paid." Cartret made available to the Division

text messages between him and Bibbs where Bibbs advises his fee is $ 1 0 , 0 0 0 per month for 1 2

months for 2 years with 50% down. Non-negotiable. Subsequently Cartret contacted the Division

and discovered Bibbs was not a registered lobbyist.

Cartret also advised Bibbs had appeared on February 12, 2016 before the N.C. Courts

Commission representing Cannon. Division Director Broun was able to confirm that Bibbs had

appeared on behalf of Cannon and presented before the N.C. Courts Commission regarding Bail

Bonds. This commission has several members who are for purposes of G . S . 1 2 0 C , "covered

persons", but the Commission itself is not a covered board.

SA Jones was able to independently corroborate the information given by Mark Cartret through

the official records for the N.C. Courts Commission. A review of the audio file recording of the

N.C. Courts Commission hearing on February 12, 2016 revealed Bibbs addressing the

Commission, identifying himself and stating he represented Cannon and the NC Bail Academy.

On August 3 0 , 2 0 1 6 , SA Jones also contacted Robert Brawley about his complaint and he also

agreed to be interviewed. Since Brawley is the Secretary for Cannon Surety SA Jones requested

he voluntarily furnish Cannon's financial records for inspection to determine if Bibbs was paid to

lobby for Cannon Surety while he was not registered. Brawley agreed to furnish financial

records at the interview the following day (September 1 , 2 0 1 6 ) .

At the September 1 s t meeting Brawley provided copies of two checks recently written (August 1 ,

2016 and August 5, 2016) to Bibbs by Dallas McClain from the Capital Bank account

1 1
 (#067011760 560025881706) of Cannon Surety, LLC. The checks do not contain any

information indicating the nature of the activities for which they were payment. Further,

Brawley stated that there were significant suspicious cash withdrawals from the Cannon financial

account which he previously reviewed the records. As a result of a Temporary Restraining Order

served on Brawley on September 1, 2016 and contained in File No. 16 CVS 1208 Wilson

County, Brawley was unable t o secure and provide to SA Jones bank records which would

substantiate the amount and date of payment to Bibbs for lobbying on behalf of Cannon.

On September 1 , 2 0 1 6 Brawley appeared for the interview, but advised he was unable to obtain

the financial records requested. Brawley advised when he attempted to access the company's

bank account he discovered he had been "locked out". Brawley stated he went to Capital Bank

to see what the problem was and was informed that a Temporary Restraining Order (TRO) had

been served upon Capital Bank blocking his access to the account. After his visit.to the bank

Brawley was contacted by his spouse who advised a document had been delivered to their home

for him. Brawley was already enroute to Raleigh from Mooresville for our interview and had not

physically read the TRO. He did know that the TRO had been filed in Wilson County by Mark

Bibbs on August 3 0 , 2 0 1 6 File No. 1 6 CVS 1208. The TRO is supported by an affidavit of

Dallas McClain. The Division obtained a copy of the TRO and affidavit from the Wilson

County Clerk's Office.

SA Jones was able to independently substantiate information given by Brawley during his phone

and in person interviews through official House records, Division documents and records, and

corroborating witness testimony.

LOBBYING VIOLATIONS

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

(a) A lobbyist shall file a separate registration statement for each principal the lobbyist represents with the

Secretary of State 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 as defined in G . S . 120C-100(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 lobbyist's last registration under subsection

(b) of this section. Each supplementary registration shall include a complete statement of the information that has

- .

(d) Unless a resignation is filed under G . S . 1 2 0 C - 2 1 0 , each registration statement of a lobbyist required

under this Chapter shall be effective from the date of filing 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 in d i v id u a l . The lobbyist shall also disclose the identi ty of the

lobbyist principal connected to that lobbying communication or acti v i ty .

(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 mont h s after voluntary separation or separation for

cause from employment with a State agency sha l l a l so indicate which State agency with w h ich the former employee

12
was employed. ( 1 9 3 3 , c. 1 1 , s. 2; 1 9 7 3 , c. 1 4 5 1 ; 1975, c. 820, s. 1 ; 1 9 8 3 , c. 7 1 3 , s. 5 1 ; 1 9 9 1 , c. 740, s. 1 . 1 ; 2004-

203, s. 50(a); 2006-201, s. 1 8 ; 2 0 0 8 - 2 1 3 , ss. 1 3 , 90; 2009-549, s. 3 ; 2 0 1 0 - 1 6 9 , s. 4(c); 2 0 1 3 - 3 6 0 , s. 27.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

Class 1 misdemeanor, except as provided in those Articles. 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 civil fines

for a violation of any provision of Articles 2, 4, or 8 of this Chapter up to five thousand dollars ($5,000) per

violation. 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 dollars

($5,000) per violation. ( 1 9 3 3 , c. 1 1 , s. 8; 1975, c. 820, s. l ; 1 9 9 1 , c . 740, s. 1 . 1 ; 1 9 9 3 , c. 5 3 9 , s. 9 1 4 ; 1994, Ex. Sess.,

c. 24, s. 14(c); 2005-456, s. l ; 2006-201, s. 1 8 ; 2006-259, s. 43.5(a).)

PROBABLE CAUSE TO BELIEVE EVIDENCE OF

THE CRIME IS LOCATED AT CAPITAL BANK

I have not included each and every fact known to me concerning this investigation. I have set

forth the facts that I 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 Capital Bank account # 0 6 7 0 1 1 7 6 0 5 6 0 0 0 2 5 8 8 1 7 0 6 of Cannon Surety.

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

as recently as June 28, 2 0 1 6 for Cannon Surety in opposition to SB 5 0 8 .

Beginning January 1 , 2 0 1 6 Mark Bibbs was not a registered lobbyist for Cannon Surety, and

Cannon Surety was not registered as a principal.

The affiant 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 .

The affiant reviewed the Minutes of House Committee on Judiciary III for June 1 5 , 2 0 1 6 and

June 2 8 , 2 0 1 6 which confirm Mark Bibbs was in attendance and addressed the Committee on

June 28, 2 0 1 6 . The affiant reviewed the audio record from the June 2 8 , 2 0 1 6 meeting where

Bibbs can be heard addressing the Committee and stating he represents Cannon Surety.

Mark Cartret (complaining witness) states Bibbs assured him that he was being well paid.

Cartret also supplied the Division with text messages between him and Bibbs where Bibbs

advises his fee is $ 1 0 , 0 0 0 per month for 1 2 months for 2 years with 50% down. Non-negotiable.

13
Cannon Surety is currently delinquent in filing Principal expense reports for the last two quarters

of 2 0 1 5 , and the first two quarters of 2 0 1 6 . Consequently Cannon has not complied with its G . S .

120C-403 (d) obligation to file and disclose to the Division the amount of money paid for Bibbs

lobbying activities in 2 0 1 5 .

Mark Bibbs is currently delinquent in filing Lobbyist expense reports for the first two quarters of

2 0 1 6 as it relates to Cannon Surety.

Cannon Surety Secretary Robert Brawley stated he was aware of at least two checks made

payable to Bibbs from Cannon Surety's Capital Bank account. Brawley made copies of the two

checks and made them available to the Division. The copies confirm both checks are drawn on

the Capital Bank account of Cannon Surety and are made payable to Mark Bibbs. No memo

information was documented on the checks. The checks are dated August 1 , 2 0 1 6 and August 5,

2016.

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

maintained within the custody of Capital Bank. 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.0903 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:

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

maintained within the custody of Capital Bank.

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 cashiers 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

14
 c. all documents necessary to trace and supply the description of a

check or other item deposited into a checking account

Therefore, the affiant has probable cause to believe that the property to be seized will be found in

the Capital Bank account of Cannon Surety, LLC. The affiant also has probable cause to believe

that Dallas McClain (in his capacity as an officer of Cannon Surety) used the Capital bank

account # 0 6 7 0 1 1 7 6 0 5 6 0 0 0 2 5 8 8 1 7 0 6 of Cannon Surety to pay Mark Bibbs for his services as a

lobbyist to oppose SB 5 0 8 while Mark Bibbs was not registered as a lobbyist with the Division,

and when Cannon was not registered as a principal in violation o f N . C . G . S . 120C-200(a). I am

aware that evidence of such criminal violations are usually found within the bank financial

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

perpetrators, and 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. Therefore, I respectfully request the Court to issue a

warrant directing a search for and seizure of items sought herein.

A . H . Jones, Specit

North Carolina Department of the Secretary of State

15
 Wake County )

) AFFIDAVIT IN SUPPORT OF SEARCH

) WARRANT OF JOAL H. BROUN

In Re Mark Bibbs, Cannon Surety, LLC 2016-002

I, Joal H. Broun, being first duly sworn, depose and says as follows:

1. I am currently the Director of the Lobbying Compliance Division of the North Carolina

Department of the Secretary of State and have been since July 1 , 2006. In that capacity, I am the

chief administrator in charge of administering and enforcing the Lobbying Act, Articles 2, 4, and

8 of Chapter 1 2 0 C of the General Statutes. I am also the custodian of the records for the

Lobbying Compliance Division. I am a member of the North Carolina Bar and have been since

1986.

2. I am qualified and competent to testify about the matters contained in this affidavit, and

my statement set out herein is made upon my own personal knowledge of the facts set forth

herein.

3. The Lobbying Compliance Division enforces Articles 2, 4, and 8 of the Lobbying Act.

The definition of"lobbying" is found in G . S. 120C-100(a)(9). The definition of"lobbyist" is

found in G . S . 1 2 0 C - 1 0 0 ( a ) ( 1 0 ) and the definition of"lobbyist principal" is found in G . S .

120C-100(a)(l l ) . The definition of"designated individual" is found in G . S . 120C-100(a)(2).

The designated individual definition includes is a legislator, legislative employee, or public

servant.

4. Under G . S . 120C-200(a), it is unlawful for an 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 Article 7 of the Lobbying Act.

5. Under G . S . 120C-206, a lobbyist principal must file a written authorization

authorizing the lobbyist to represent the principal within 20 business days after the lobbyist's

registration.

6. Under G . S . 1 2 0 C - 2 1 0 , each registration statement of a lobbyist required under this

Chapter shall be effective from the date of filing until January 1 of the following year unless a

resignation is filed. The lobbyist shall file a new registration statement after that date, and the

applicable fee shall be due and payable. G . S . 120C-200(d).

7. A registration of a lobbyist under G . S . 120C-200 and the written authorization of that

lobbyist principal under G . S . 120C-206 are terminated upon the filing of either a lobbyist

resignation or a principal termination with the Secretary of State, whichever occurs first.

Lobbyist resignations and lobbyist principal terminations are effective upon filing. G . S . l 20C-

210.
 8. Under G . S . 1 2 0 C - 4 0 1 ( a ) and 120C-402, lobbyists must file quarterly expense reports

with the Secretary of State. These reports reflect the following:

a. Reportable expenditures made for lobbying made by the lobbyist directly to a

"designated individual";

b. Solicitation of others when such solicitation involves an aggregate cost of more

than three thousand dollars ($3,000);

c. Contractual arrangements or direct business relationships between a lobbyist or

lobbyist principal and a designated individual, or that designated individual's

immediate family member, in effect during the reporting period or the previous 1 2

. months;

d. Reportable expenditures made by the lobbyist and reimbursed by the lobbyist

principal; and

e. All reportable expenditures for gifts given under G . S . 1 3 8 A - 3 2 ( e ) ( l ) - ( 9 ) , 1 3 8 A -

32(e)(l 1 ) , 1 3 8 A - 3 2 ( e ) ( 1 2 ) , and all gifts given under G . S . 1 3 8 A - 3 2 ( e ) ( 1 0 ) with a

value of more than ten dollars ( $ 1 0 . 0 0 ) .

9. Under G . S . 120C-401(a) and 120C-403, lobbyist principals must file quarterly

expense reports with the Secretary of State. These reports reflect the following:

f. Reportable expenditures made for lobbying made by the lobbyist principal

directly to a "designated individual";

g. Solicitation of others when such solicitation involves an aggregate cost of more

than three thousand dollars ($3,000).

h. Contractual arrangements or direct business relationships between a lobbyist or

lobbyist principal and a designated individual, or that designated individual's

immediate family member, in effect during the reporting period or the previous 1 2

months;

1. Reportable expenditures made by the lobbyist and reimbursed by the lobbyist

principal;

J. All reportable expenditures for gifts given under G . S . 138A-32(e)(l)-(9), 1 3 8 A -

32(e)(l 1 ) , 1 3 8 A - 3 2 ( e ) ( 1 2 ) , and all gifts given under G . S . 1 3 8 A - 3 2 ( e ) ( 1 0 ) with a

value of more than ten dollars ( $ 1 0 . 0 0 ) a l l gifts given under G . S . 138A-32(e)(10)

with a value of more than two hundred dollars ($200.00); and

k. The cumulative combined total of all payments made during the registration

period for lobbying to lobbyists.

1 0 . G . S . 120C-600(c) provides that complaints of violations of Articles 2, 4, and 8 of this

Chapter, all other records accumulated in conjunction with the investigation of these

complaints, and any records accumulated in the performance of a systematic review shall

be considered confidential records and may be released only by order of a court of

competent jurisdiction.

1 1 . It is a Class 1 misdemeanor for an individual to lobby without timely registering as a

lobbyist. G.S. 120C-602.

-2-
 1 2 . In its comments regarding Rule 5 . 7 Responsibilities Regarding Law-Related Services, the

North Carolina State Bar, indicated in its comments and in Journal Articles, the Bar

considers lobbying as law related services. In the comments to Rule 5 . 7 , it states:

[ 1 ] A broad range of economic and other interests of clients may be served

by lawyers' engaging in the delivery of law-related services. Examples of

law-related services include providing financial planning, accounting, trust

services, real estate counseling, legislative lobbying, economic analysis,

social work, psychological counseling, tax preparation, and patent, medical

or environmental consulting.

1 3 . The Division again encountered Mark Bibbs as a lobbyist in calendar year 2 0 1 5 after he

had been a lobbyist from 1 9 9 3 to 1 9 9 6 .

1 4 . Mr. Bibbs registered as the sole lobbyist for Cannon Surety, LLC (CannonSurety) and

NC Bail Academy on February 8, 2 0 1 5 . Dallas McClain, the authorized officer of

Cannon Surety, filed the principal authorization on February 8, 2 0 1 5 .

1 5 . On May 1 3 , 2 0 1 5 , Mr. Bibbs personally appeared and came to the Division office,

located on the third floor of the Old Revenue Building. Mr. Bibbs requested blank

resignation forms from one of our staff members. Blank resignation forms were then

handed to Mr. Bibbs.

16. Mr . Bibbs then executed the resignation forms in our office and then presented them to

this office for filing. The Division accepted the filings and filed them on May 1 4 , 2 0 1 5 .

1 7 . On May 1 4 , 2 0 1 5 , the Division sent the computer generated email to Mark Bibbs

indicating that the officially recognized lobbying relationship between Cannon Surety

and Mr. Bibbs no longer existed.

1 8 . On June 1 , 2 0 1 5 , Mr. Bibbs sent an email to this office stating, "[t]hat termination was

sent in error. Please show me as active for the principal."

1 9 . On June 2, 2 0 1 5 , Mr. Bibbs called the Division inquiring about who filed the resignations

on his behalf and the phone call was transferred to Mrs. Lora Sinigur, a staff member of

the Division. Mr. Bibbs inquired about the needed forms to cancel the two resignations

for N . C . Bail Academy and Cannon Surety, LLC. Mr. Bibbs stated that he did not file

the resignations in our office and those resignations were done in error. According to Mr.

Bibbs, his administrative assistant came in our office on May 1 3 , 2 0 1 5 . Mr. Bibbs

requested that we cancel the two resignations, as he did not intend to resign. Mr. Bibbs

mentioned about a "payment for service" issue with the principal and that he planned to

resign after getting a check from the principal. Bibbs did not go into the details with Mrs.

Sinigur about the payment issue nor did she ask additional questions.

2 0 . This office interpreted this request as a request that this office change Mr. Bibbs' status

as a registered lobbyist for Cannon Surety and NC Bail Academy to "active" in the
1
records of the official online lobbyist registry.

The Division is required to maintain an electronic searchable registry of the lobbyist and lobbyist principal

registrations and expense report filings. G . S . 120C-220 andl20C-405.

-3-
 2 1 . After the Division sent Mr. Bibbs a communication to clarify the Division's

understanding of the Lobbying Act's effect on a resignation and his intentions, Mr. Bibbs

withdrew his request to rescind his resignation. Therefore, Mr. Bibbs' lobbyist

registration was no longer effective for Cannon Surety and Mr. Bibbs was :unregistered as

Cannon Surety's lobbyist after May 1 3 , 2 0 1 5 .

22. On August 26, 2 0 1 5 , a staff member received a telephone call from Michael Mann and

Melissa Seiler asking if Mr. Bibbs was registered lobbyist for Cannon Surety, a minute

apart from each other. She informed each caller that she would give them a call back.

2 3 . After Division staff conferred with the General Counsel of the Department, Ann Wall, at

Ms. Wall's direction, Ms. Wall directed Ms. Smith to contact Mr. Mann and Ms. Seiler

and walk them through how to view the information.

24. Ms. Seiler informed Ms. Smith that she had already looked online and seen the resigned

status of Mr. Bibbs but that Mr. Bibbs had informed Ms. Seiler that he was still lobbying

on behalf of Cannon Surety.

2 5 . On August 27, 2 0 1 5 , M r . Bibbs registered again as a lobbyist for Cannon Surety. On his

registration, Mr. Bibbs listed Long Leaf Pine Consulting, LLC as his firm. Cannon

Surety filed its principal authorization on the same day, designating Mr. Bibbs as its only

lobbyist. Cannon Surety also entered Long Leaf Pine Consulting, LLC as the Mr. Bibb's

lobbying firm.

26. Long Leaf Pine Consulting, LLC is a North Carolina limited liability corporation. Mr.

Bibbs is the organizer and its registered agent.

27. On Mr. Bibb's registration statement filed on August 27, 2 0 1 5 , he certified that:

I hereby certify that all information disclosed in this "Lobbyist Registration

Statement 2 0 1 5 " is true, complete and correct in accordance with G . S .

120C-200. By signing this certification, I understand I have an affirmative

duty to comply with the Lobbying Law and the rules, including filing

reports, as the law requires.

28. Cannon Surety is not in compliance with its quarterly expense report obligations. To

date, it has failed to file its third and fourth quarter reports for 2 0 1 5 . The Division has

made numerous requests to Mr. McClain to file the missing reports as obligated by G . S .

1 2 0 C - 4 0 1 and 120C-403 of the Lobbying Act, but the reports have not been filed.

29. On December 1 4 , 2 0 1 5 , the Department sent an email to all lobbyists and authorized

officers of lobbyist principals who had been registered in 2 0 1 5 , announcing that the 2 0 1 6
2
registration had been opened.

3 0 . On January 4, 2 0 1 6 , IT staff sent an email to all of the registrants registered in 2 0 1 5

indicating that the fourth quarter Lobbying Expense Reports were due on January 5,

2016. Additionally, the Division provides on the Department website, the dates when the

quarterly expense reports are due. The Department sent an email to Mr. McClain at the

address he provided on the principal authorization, dallas@csurety.com.

2
Since 2 0 1 3 , there is a mandatory electronic registration requirement. The Department permits registration for the

next calendar year starting in December of the previous year.

-4-
 3 1 . On February 1 2 , 2 0 1 6 , the North Carolina Courts Commission held its February meeting.

Mr. Bibbs was the last speaker from the public. He identified himself as the lawyer and

lobbyist for Cannon Surety, a captive insurance company, and the N . C . Bail Academy, an

organization who trains bail bonds men. He expressed on behalf of his clients that he
3
was opposed to Senate Bill 5 0 8 . Senator Michael Lee, the sponsor of Senate Bill 5 0 8

sits on the North Carolina Courts Commission.'

3 2 . On June 1 5 , 2 0 1 6 , House Judiciary Committee III met. On its agenda to be discussed by

members of the committee was Senate Bill 5 0 8 , a portion of that bill dealt with amending

certain bail bonds laws. The proposed committee substitute modified surety's obligations

regarding bond forfeiture judgments, would "expand the Insurance Commissioner's

disciplinary authority over "bail bondsmen and runners," and remove certain notification

requirements after an obligor terminates an appearance bond. He signed in as being

affiliated with Long Leaf Pine Consulting. The committee did not discuss Senate Bill

5 0 8 but set another meeting day.

3 3 . On June 2 8 , 2 0 1 6 , House Judiciary Committee III met to discuss Senate Bill 5 0 8 . At that

meeting, Mr. Bibbs spoke in opposition to the bill and identified himself as representing

Cannon Surety, but signed in on the signup sheet as Bibbs Law Group. Bibbs Law Group

is the name that Mr. Bibbs operates his law firm.

3 4 . At the June 28, 2 0 1 6 House Judiciary III Committee meeting, twelve legislators were

present at the House Judiciary Committee meeting and five members of legislative staff

were present.

3 5 . On July 5, 2 0 1 6 , the Division received an email from Melissa Seiler asking if Mark Bibbs

was registered to lobby. After checking the Department lobbying database, Division staff

responded that he was not registered.

3 6 . On that same day, Mark Cartret asked, "if Mark L. Bibbs, individually or through a

company is registered to lobby at the NC General Assembly?" After checking the

Department lobbying database, Division responded that he was not registered.

3 7 . On July 5, 2 0 1 6 , in the afternoon, a man who did not identify himself asked what

happens if a person lobbies in 2 0 1 6 on an expired registration. Because we had received

several calls in a short period asking about Bibbs' registration, we checked the number in

our database. Division operating procedure for telephone calls is to write down the

telephone number of the call whether the person identifies himself or herself or not. Mr.

McClain's name came up as the person associated with the telephone number.

3 8 . On the next day, Mr. McClain, sent me an email stating the following:

I am writing to try to correct a registration deficiency. I was under the

impression that our registration carried us through the 'short session' of

legislating and have found out otherwise. Mark L. Bibbs was our lobbyist

throughout 2 0 1 5 and our last zero expense form was posted in January

2016. We would like to correct this oversight and are seeking your

3
See copy ofrecording of February 1 2, 2 0 1 6 , N.C. Courts Commission (Representative Sarah Stevens presidingO,

beginning at 1 : 4 8 : 1 3 .

-5-
 guidance in doing so. We would like to make sure we are current through

Dec 2 0 1 6 .

Please instruct me how to proceed to correct this. I understand from the

office staff you should receive an email from the lobbyist himself as well as

the principal, and that is being done as we speak.

3 9 . On July 6, 2 0 1 6 , I responded to Mr. McClain that:

At this juncture, we will need the following:

1. Filed principal registration for Cannon Surety

2. A detailed explanation from you for us to consider in regards to the

unregistered lobbying in 2 0 1 6 .

40. On July 6, 2 0 1 6 , Mr. Bibbs contacted me via email regarding his 2 0 1 6 registration

deficiency. He stated:

Ms. Broun,

Good afternoon. I am writing to try to correct a lobbying registration

deficiency. I was under the impression that our registration last year carried

us through the entire 2 0 1 5 - 2 0 1 6 Session of the General Assembly and have

now found out otherwise. I believe you have received a similar

correspondence from my principal - Cannon Surety, LLC.

I served as Cannon's lobbyist in the 2 0 1 5 . L o n g Session and the 2 0 1 6 Short

Session of the General Assembly. Both of us should be registered

throughout the remainder of the 2 0 1 6 calendar year. We would like to

correct this oversight immediately. We would like to make sure we are

current, in good standing and in compliance with all rules and regulations

regarding lobbying through December of 2 0 1 6 .

I am assuming I will be copied on an email to the principal as to the proper

actions. We look forward to acting forthwith upon your direction.

Thank you.

4 1 . I responded to Mr. Bibbs on the same day:

At this juncture, we will need the following:

1. Filed lobbyist registration on behalf of Cannon Surety, and;

2. A detailed explanation from you for this office to consider in regard to

the unregistered lobbying in 2 0 1 6 .

I will need a written authorization from Mr. McLain as the authorized

officer of Cannon Surety in order to copy you on any emails to the

principal.

42. On July 8, 2 0 1 6 , Mr. McClain filed a principal reg i s tr a t ion for Cannon Surety authorizing

B ibbs to represent it as its sole lobbyist.

4 3 . On July 1 5 , 2 0 1 6 , Mr. Bibbs fil e d a l ob b yist registration to lobby on beha lf of Cannon

Surety.

-6-
44. On July 2 1 , 2 0 1 6 , via email, I renewed the Division's request to Messrs. Bibbs and

McClain each separately, to provide an explanation of why Mr. Bibbs and Cannon Surety

did not register as lobbyist and lobbyist principal respectively in 2 0 1 6 .

45. On July 26, 2 0 1 6 , I received an email from Mark Cartret. He stated, "I have recently

witnessed Mr. Bibbs at the North Carolina General Assembly while engaged in (what I

believed to be lobbying) against Senate Bill 5 0 8 . Would this be improper or is there any

way he could have done such without being registered? He appeared to be with Dallas

McClain and Lyne Thompson, members or principals with either the NC Bail Academy

or Cannon Surety. You mentioned registration in 2 0 1 5 for Cannon Surety and the NC

Bail Academy below. Accordingly, I have emails showing where Mr. Bibbs contacted

nearly every member of the committee voicing his opposition. In a text message he told

me he was registered and also indicated he had been paid for this.

46. On July 27, 2 0 1 6 , Mr. Cartret sent a lobbying complaint addressed to the State Ethics

Commission and our Department. In that complaint, Mr. Cartret alleges that Mr. Bibbs

and Cannon Surety lobbied without being registered in 2 0 1 6 .

4 7. With his complaint, Mr. Cartret provided several emails dating from February 1 1 , 2 0 1 6 to

June 27, 2 0 1 6 from Mr. Bibbs to Mr. Cartret where Mr. Bibbs identified himself as the

lawyer and lobbyist for the North Carolina Bail Academy and Cannon Surety, LLC. One

of those emails is a June 27, 2 0 1 6 email where Mr. Bibbs sent to members of House

Judiciary Committee III, expressing his and his clients' continued opposition to Senate

Bill 5 0 8 .

4 8 . On July 28, 2 0 1 6 , I called Mark Cartret, the individual who had filed a complaint against

Mr. Bibbs, and others regarding unregistered lobbying. In that conversation, he indicated

that:

He said that he knew Mr. Bibbs. He said that Bibbs constantly told him that

he was "getting paid." He also said that Bibbs told him that "he (Bibbs)

that he had got Senate Bill 5 0 8 slowed down in House Finance." He also

said that other people witnessed Bibbs lobbying.

49. Mr. Cartret's statements regarding Mr. Bibbs being down at the General Assembly has

been independently corroborated with documents from the General Assembly recording

of meetings, minutes, and attendance sheets.

5 0 . On July 29, 2 0 1 6 , Mr. McClain responded in email that he thought that when Cannon

registered for 2 0 1 5 , it also registered for 2 0 1 6 . He additionally cited the old law, which

the Division provides. I replied, "You are referencing the old law. On our website, we

have a link to the Lobbying Laws effective until January 1 , 2007 and the current lobbying

law. See the attached website snapshot."

5 1 . On July 29, 2 0 1 6 , Mr. Bibbs responded to my July 2 1 , 2 0 1 6 email. In his response, Mr.

Bibbs stated in part that:

I was under the impression that my registration as a lobbyist for Cannon

Surety, LLC covered the General Assembly's long and short session, for the

2 0 1 5 - 2 0 1 6 biennium, as opposed to the calendar year.

-7-
 52. On July 3 1 , 2 0 1 6 , in response to Mr. Bibbs' letter, I asked him to explain why he did not

file any additional reports for 2 0 1 6 . I asked, "[i]fyou considered yourself registered for

2 0 1 6 , why did you not file the required lobbyist expense reports in 2 0 1 6 ? Prompt clarity

in this matter would be most helpful. Please expedite your response."

5 3 . To date, the Division has not received any additional information from Mr. Bibbs

clarifying why he failed to file his lobbyist expense reports for the first six months of

2016.

54. Mr. Bibbs has not filed any quarterly expense reports for 2 0 1 6 as Mr. Bibbs did in 2 0 1 5

with regards to his lobbying activity which is in violation of Article 4 of the Lobbying

Act.

5 5 . Cannon Surety has not filed any quarterly expense reports for 2 0 1 6 in violation of Article

4 of the Lobbying Act.

FURTHER THE AFFIANT SA YETH NOT.

This the &tt\ day of September, 2 0 1 6 .

NORTH CAROLINA DEPARTMENT

OF THE SECRETARY OF STATE

U . o.J<- By: fkll.iJU/(}

- ., f... . ,, , . pJo_ai H. Broun . . . . .

81 s;;.CJ (\Jo.((__Qa.Jcl)[, r-ia:__ Director, Lobbymg Compliance Division

Sworn to and subscribed before me

this the ay of September , 2 0 1 6 .

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-8-
 r-,: :- t.....

STATE OF NORTH CAROLINA .. i iN " y I.'.J: i GENERAL COURT OF JUSTICE

WAKE COUNTY n17 , , , _ sHPRIOR COURT DIVISION

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. ,. I i ) i..J o . i. . MOTION TO SEAL

IN THE MATTER O F :

_.'-, -----.:SEARCH !ARRANT

Investigation by

North Carolina Secretary of State, ACCOMPANYING

Lobbying Compliance D i v i s i o n 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 C o m i t o issue an Order requiring that the application

for search warrant, search warrant and return, accompanying affidavits and documents, 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 1 2 0 C Article 2, N . C . Gen. Stat. 1 2 0 C - 2 0 0 (Lobbyist

registration procedure) and 120C-206 (Lobbyist principals' authorization) of the North

Carolina Lobbying Law, said violation(s) believed to be committed by certain individuals or

entities identified in the search warrant.

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

# 2 0 1 6 - 0 2 , and the investigation is ongoing.

3. As a result of this investigation, a search warrant has been obtained and will be

executed without unnecessary delay.

4. The application for the search warrant, the search warrant and return, and the

accompanying affidavits and documents contain sensitive and confidential information.

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

jeopardize the D i v i s i o n ' s ongoing criminal investigation and p o s s i b l y 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 p u b l i c in having access to the above

mentioned documents u n t i l further order of the C o u rt .

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

search warrant, the search warrant and return, accompanying affidavits and documents, and this

M o t i o n and the resulting Order, is essential to preserve higher values and is narrowly tailored to

serve that interest.

This the ( S t! day of September, 2 0 1 6 .

Jerem indsley (S ar No. 2 6 2 3 5 )

Assistant Attorne neral

North Carolina artment of Justice

On behalf of the North Carolina Department

of the Secretary of State

P . O . Box 629

Raleigh, NC 2 7 6 0 2 - 0 6 2 9

T: ( 9 1 9 ) 7 1 6 - 6 6 1 0

F: ( 9 1 9 ) 7 1 6 - 6 7 5 7

j lindsley.ncdoj .gov

2
 r= i . - :: f J
STATE OF NORTH CAROLINA IN THE GENERAL COURT OF JUSTICE

WAKE COUNTY 20!7Jl!i'l-6 P!1 os SUPERIORCOURTDIVISION

IN THE MATTER O F :
' 1 1 . :..:-._ . . , .
, . ,, ,, r, s c ORDER TO SEAL
. . . . , . t ; \,,., ,

SEARCH WARRANT

Investigation by 1r( C#.

...A _____; &

North Carolina Secretary of State, -;,=::r-- ACCOMPANYING

Lobbying Compliance D i v i s i o n DOCUMENTS

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

it appearing to the Court that:

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. Gen. Stat. 120C-200 (Lobbyist registration

procedure) and N . C . Gen. S t a t . 1 2 0 C - 2 0 6 (Lobbyist Principal's Authorization).

2. No one has been charged with any crime and the investigation is ongoing.

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

applied for a search warrant to search bank records of a person or entity being investigated for

v i o l a t i o n s o f N . C . Gen. S t a t . 1 2 0 C - 2 0 0 a n d 1 2 0 C - 2 0 6 .

4. The search wan-ant for these records was granted on September 1 3 , 2 0 1 6 by the

undersigned Judge.

5. The application for the search warrant, search wan-ant and return, accompanying

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

Seal Search Wan-ant and Accompanying Documents contain sensitive and confidential

information.

6 . That, at this time, publication of the contents of the warrant application, the wan-ant

and return thereof, t h i s M o t i o n and Order may hinder the success of the ongoing investigation by

the North Carolina Department of the Secretary of State

7. That to publicly disclose the basis for the search warrant, 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 i n v o l v i n g this investigation and

any subsequent prosecution and w i l l jeopardize the right of the state to prosecute a defendant or

the right of the defendant to receive a fair trial or w i l l undermine an ongoing investigation.
 8. That the interest of justice will best be served by temporarily maintaining the secrecy

of the application for the search warrant, the attachments and supporting affidavits the warrant,

the return of the warrant and any accompanying inventories of items seized, the Motion and

Order.

IT IS THEREFORE ORDERED that the application and accompanying affidavits, the

warrant issued on the above referenced date, and the return therefore, the Motion to Seal and this

Order be sealed by the Clerk of Superior Court and the contents thereof not to be unsealed for a

period of 90 days herefrom.

111
This the 1 3 day of September, 2 0 1 6 .