Crony Capitalism, Conflict of Interest Investigation by DENR and Kay Hagen

Crony Capitalism, Conflict of Interest Investigation by DENR and Kay Hagen

Corruption in North Carolina

Just a week after Sen. Kay Hagan (D., N.C.) recommended a North Carolina judge to President Barack Obama for a seat in the U.S. District Court, the judge ruled in favor of a company partially owned by Hagan’s husband.

The senator’s husband, Charles T. “Chip” Hagan, was a managing member of Hydrodyne Industries LLC when it sued a regional water authority for drawing water out of a river that had one of its hydroelectric dams built on. The lawsuit sought millions of dollars in damages and was carried out by Chip Hagan’s legal firm.

Superior Court Judge Calvin E. Murphy ruled the case in favor of Hydrodyne, setting the table for the Piedmont Triad Regional Water Authority to pay millions in damages to companies including Hydrodyne.

Murphy’s ruling was made on Oct. 23, 2009, just nine days after Sen. Hagan sent his name to Obama to be nominated for a lifetime seat on the U.S. District Court for Western North Carolina.

Hagan withdrew her recommendation to Obama after North Carolina’s News and Record contacted her office about the apparent conflict of interest, telling the paper that she “was not aware that Judge Murphy was hearing a case in which my husband had an interest.”

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Sen. Kay Hagan (D-NC) had been in office for less than two months when she, cast the deciding vote on the Stimulus Bill that was supposed to create ‘shovel ready jobs and put the economy back on tract by significantly lowering unemployment.   After the passage of the measure, she issues a press release saying  that “this legislation delivers on our simple promise to change the way things work in Washington — for working families and not for special interests.”

Working families are still waiting for the change the thought was going to make things better.  It turned out to be less than promised when “shovel ready jobs weren’t as shovel ready” as promised.

What it did do was reward ‘friends of Obama’ donors and supporters, like Kay Hagen and her family who were among the ‘green energy companies’ that collected $52 billion in stimulus funds.  Chip Hagen and their son created a solar energy contracting business in August of 2010 using $250,644 in stimulus grant funds and then hired that same company to install solar panels in a building he owns.

Just days before the election The Charlotte Observer pulled a story that reported on the investigation  currently underway by Department of Environment and Natural Resources (DENR), looking into  JDC Manufacturing for being in violation of conflict of interest provisions.

Twitchy reported earlier about North Carolina media pulling a story that could be damaging to Senator Kay Hagan. ‘Recalled for political reasons?’ NC media outlets pulling Kay Hagan story sparks questions.

The story had to do with an investigation into a possible conflict of interest through which Hagan’s husband’s company received grants through the federal stimulus program.

Joe Bruno from Fox 46 in the Carolinas is reporting that the North Carolina Department of Environment and Natural Resources is indeed investigating Chip Hagan’s company JDC Manufacturing for conflict of interest.

Seems the only working family Kay Hagen is concerned about is her own.

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