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Fife No.
STATE O F N O R T H C A R O L I N A
I n The G e n e r a l C o u rt Of Justice
PURSUANT TO SEARCH
NOTE: This is 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
[i] 1 . I left a copy of this i n v e n t o ry with the person named below, who is:
Name And Address Of Person To Whom A Copy Of This Inventory Was Delivered, If Any
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 BEFORE ME
Date
Special Agent
A C K N O W L E D G M E N T OF R E C E I P T
STATE O F N O R T H C A R O L I N A
Name
PURSUANT TO SEARCH
Ii] 1 . a s e a r o h w a r r a n t i s s u e d b y : S_upe_r__r_C_o_u_rt_J_u_d-P__
. R__
i d-w_ay------------------
-----------------------------
D 3. other legal j u s t i fi c a t i o n for the search: ---------------------------
NOTE: This was a search warrant for bank records. The warrant was served on 9 - 1 3 - 2 0 1 6 . On 9 - 2 0 - 2 0 1 6 an electronic response was
received from Wells Fargo containing financial records. The response was incomplete. Additional inventory sheets w i l l be filed with
(Over)
AOC-CR-206, Rev. 5/98 Original File Copy - Person Whose Property Seized
Ix] 1 . I l e ft a copy of this i n v e n t o ry with the person named below, who is:
Name And Address Of Person To Whom A Copy Of This Inventory Was Delivered, If Any
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
Date
Special Agent
A C K N O W L E D G M E N T OF R E C E I P T
In the Matter of
Rockford-Cohen G r o u p , LLC
Mark L. Bibbs
Lyne T h o m p s o n
ATTACHMENT I
PROPERTY TO BE SEIZED
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
Mark L. Bibbs
Lyne T h o m p s o n
At Wells Fargo Bank, for the period extending from January 1 , 2 0 1 5 through present date.
APPLICATION FOR SEARCH WARRANT
In the Matter of
Mark L. Bibbs
Lyne Thompson
ATTACHMENT II
PREMISES TO BE SEARCHED
1 5 0 Fayetteville St.
Raleigh, NC 2 7 6 0 1
2
APPLICATION FOR SEARCH WARRANT
In the Matter of
Mark L. Bibbs
Lyne T h o m p s o n
ATTACHMENT III
I, the undersigned affiant, A. H. Jones, have been a Law Enforcement Officer for over thirty
nine ( 3 9 ) years. Currently I am employed as a full time, sworn law enforcement agent by the
N01ih Carolina Department of the Secretary of State. During my 3 9 years of service I have
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
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 An-est 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
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
NC.
3
BACKGROUND TO ESTABLISH PROBABLE CAUSE
The North Carolina Department of the Secretary of State ( S O S ) is tasked with the duty and
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
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
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
of the North Carolina Department of the Secretary of State 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. One of the individuals identified as Mark Cartret (Cartret) with Agent Associates Insurance
Group sent the Division an email asking is 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 in
2016.
On July 27, 2 0 1 6 , the Division received another email from Cartret stating he was drafting a formal
complaint against Bibbs for violations of the lobbying statute. Cartret sent the Division another
email that same day containing his lobbying complaint addressed to the State Ethics Commission
and the Secretary of State. Cartret's complaint was accompanied by numerous emails Cartret
believed were evidence of B i b b ' s lobbying violations. Cartret also made available email exchanges
between himself and Bibbs that contain what appears to be incriminating information.
Cartret stated that on June 28, 2016 he was copied in an email sent out by Bibbs entitled
"Attorneys on Judiciary III and Attorney Members of the House." Cartret stated in response to the
email he asked Bibbs who was he representing and Bibbs responded "Cannon Surety." Cartret
stated he contacted a representative from Cannon, and was advised they were unaware of any
Cartret stated he had "significant correspondence" showing Bibbs addressing the NC Department of
Insurance (DOI), the School Board Association, multiple legislators, and others in what he
4
Cartret also advised he had text messages where Bibbs assured him he had been "well paid", but
Cartret stated when he pressed Bibbs for information on who retained him Bibbs replied it was
confidential. Cartret stated he also discovered that other individuals and their companies that Bibbs
In his complaint, Cartret states that on several occasions while openly working in opposition to SB
5 0 8 , Bibbs appeared to be in the company of Lyne Thompson (Thompson) and Dallas McClain
(McClain). A search of the SOS official database revealed that Thompson has current business
relationships that include General Manager of NC Bail Academy, LLC (NCBA), General Manager
of Rockford-Cohen Group, LLC (RCG). The Division also obtained information that Thompson
was also a Member Manager of Premier Judicial Consultants, LLC (PJC). PJC is the parent
McClain is the President of Cannon Surety LLC, President of Premier Judicial Consultants, LLC,
Member of Val Investments LLC (Val), and Administrative Director of American Regional
On August 5 , 2 0 1 6 Cartret copied the Division on an email he had received from Bibbs regarding
the WBTV news coverage of Bibbs' relationship with Cannon Surety. Cartret stated in his email to
the Division that Bibbs had threatened him and his company.
Carteret included with his complaint an email sent by Bibbs to McClain and Thompson dated
February 1 1 , 2 0 1 6 . The email was carbon copied to Kim Crouch - NC Bar Association Lobbyist
and others. The email clearly shows a relationship between Bibbs, McClain, and Thompson, and
their joint involvement in lobbying against Senate B i l l 508 (SB 508). In the email Bibbs tells
McClain and Thompson they should speak against SB 508 in his absence at an upcoming House
Committee meeting . Bibbs was not registered as a lobbyist during this time, and McClain and
Thompson's companies were also not registered as principals. See email below:
S e n a t e B i l l 508 - Rod M a l o n e
D a l l a s & Lyne:
I j u s t spoke with Roel M a l o n e . the school board attorney for Wake C o u n t y , he's opposed to this
M a r k L. B i b b s
--------- ---------------
5
Dallas McClain responded to Bibbs' email with the following:
While reviewing all the emails made available by Cartret, this Affiant found six that show Bibbs
sent out advertising for his 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 2 5 , 2 0 1 6 , June 1 , 2 0 1 6 , June 9,
2 0 1 6 , and June 15, 2016. They were all distributed during a time period the Division's records
confirm Bibbs was not registered to lobby, and the North Carolina Bail Academy, NC Bail
Academy, and Cannon were not registered a s lobbyist principals, _pursuant to G . S . 120C. In fact at
the time Bibbs sent out the advertisements, the North Carolina Bail Academy,. LLC was
to file annual reports. Note: North Carolina Bail Academy, LLC and NC Bail Academy are two
separate entities. Thompson was the registered agent and General Manager of NC Bail Academy,
and the registered agent, organizer and member ofN011h Carolina Bail Academy. See below one of
T,
El:-""'rd,'.-,;Q)tfffl.Y,
YN3"'1<YM:::1-
Services
.\f::.y n:I\.!.(
Department of Insurance
=::1bt11 ti ..... Cr,n:;,
.:..xo:;.,,:t,CrlSURETV, u c.
Additional emails attached to the filed Cartret complaint also appear to contain information
substantiating lobbying by Bibbs during a time period he was not registered. The following excerpt
was copied from Bibbs June 1 4 , 2 0 1 6 email sent to cdenning@ncbar.org with subject l i n e "Logic.
Reason & Common Sense Opposition to SB 5 0 8 . " It begins: "Representative" and on the last page
6
See referenced email below:
D a t e : June 1 4 . 2 0 1 6 at 8 : 3 5 : 4 7 PM EDT
To: cdcnning(a'lncbar.org
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 a matter public policy.
When I was a first year law student at UNC-Chapcl Hill 24 years ago in J 992, 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 "fair play and substantial Justice."
Now how does that apply here to Senate Bill 508 you might ask? Because our court system and
our sense of justice only works when all the actors in North Carolina's Uniform Court System are
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 2 0 1 2 that created a monopoly for them to be the sole approved provider of
One uf my clients sued the NC3AJ\, and the courts of our State found that law, which was
passed at the last minute in June of the Short Session of 2 0 1 2 . around this same time frame,
Email closing:
My grandfather used to tell me: Son. when you throw a rock into a pack or dogs. the dog that barks the
loudest, is the one that got hit." Consider who is barking the loudest FOR Senate Bill 508.
Mark L. Bibbs
(0) 9 1 9 . 2 5 6 . 3 7 7 5
{C) 252-205-1982
{F) 919256-3739
bibbslawgroup@gmail.com
4 1 0 N. Boylan Avenue
In addition to the emails described above, Cartret also sent the Division the following email Bibbs
had sent to him. The email from Bibbs on its face appears to contain a forwarded email Bibbs
received from Representative Pricey Harrison. The forwarded emails subject line contained: "PCS
and summary for Senate Bill 5 0 8 . " Harrison's email references the PCS is scheduled to be heard in
7
l'-"1 Gm2il M.1rl( C;i.rtrct <m:i,kc:irtrct@gmll.com>
Guys take a ok at this new version of SB see that will be heard in House JuCiciary Ill tomorrow. Section 3
hurts you Roland, real BAO! Look ,1i:es it was Nritten with y0<.J ss:ecifieally i
l'I m'.nd. It alJows 001 to onleh
yov even 1f you surrender your t'cenae or you let it lapse for non renewal,
I JUt wont the 2 ofyoa :o be cwcrc th.7ll lhc MCS!v\ pl.it out n em..,11 bet tcxfay. whi I will f:rwar<j tc y:'J
next, that says AA.I supports $8508. ThI em..iil atso t.ikes a shol at me, b1 name! Gloves arc oU!
Mark L. 3ibbs
(0)919.256.3775
(C) 252-205-19f2
(F) 91256.J7J9
bibbslaNgroup@g:ma1I corn
4 1 0 M. Ool.:Jn Avenue
Unles ctnerw.se in::2:::ated er cavious frcm the nature of the folkmi,:9 ccmmvnicaticn. the
orc:luct The comrr.'JnM:atlon ls Inteeced for the use ct the indiv:clual or entir1 :'\ame,d above.
1f rae reader of t.:s transmlss:.on is n-ct the intended reciptenl ycu are nojfied hereby thc1: any
received th;_s c:>mir.u.1ieatlon in erro: er are ec: sure whether it is privileed. please notify U$
immediatclf by return rr.3il a:i d dt'stroy ::iny ccpres. e!ect:onic paper or otherwise. wi".ic.h
s,nl m
frn ITT
/ iPh:m e
nclcg.net>>
Mlch.iel.Lcc@ncleg.net>>
Pursuant to H ouse Rule 35(b1), please f.nd enclosed the P CS .:ind staff sumrr.ary tor Senate
8 111 :os. which is seneduteo !O be heard in House Judiciar/ Ill tomorrow a: 12.30 p.m. n LOB
i
<21.
8111 Pittcrson
C ommittee cc-ceceeer
9 1 9 - 7 3 3 - 25 7 8
The D i v i s i o n obtained copies of the Minutes of House Committee on Judiciary III, for the June 1 5 ,
8
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), Thompson signed in as representing NCBA, and
The signup sheets for the June 2 8 , 2 0 1 6 hearing show Bibbs signed in and on this occasion gave
"BLG" (Bibbs Law Group) as his firm. Lyne Thompson was also present at the June 28 hearing,
In addition to the signup sheets detailing Bibbs presence at the two hearings stated above the
Division also obtained a copy of the audio recording that captured the hearing on June 2 8 , 2 0 1 6 .
During the recording Bibbs can be heard addressing the Committee and stating that 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. Prior to Bibbs addressing the committee, at 43 :43
into the recording Lyne Thompson identifies herself as President of NC Bail Academy and
Lobbying Compliance Division Case 2 0 1 6 - 0 2 was initiated after the Divis i on determined there was
whether any violations o f N . C . G . S . 1 20C - 2 0 0 had in fact o c cu rr ed . North Caro l ina Depa rt ment of
the S ecreta ry of State Specia l Agent A . H. J ones ( this Affiant) was assigned to the investiga t ion .
This Affiant found the follo w ing information contained in the D i v i s i o n ' s records co rr oborating
infor m ation obtained from Cartret that Bibbs was not registered in 2 0 1 6 prior to July 1 5 , 2 0 1 6 .
L. B i b b s (L ong Leaf P i n e C onsulting, LL C) as its l o bbyist . O n Jul y 1 5 , 2 0 1 6 (ten days after the
D i v i s i o n began r e c ei vi ng co m p l aints ) Bibbs registered as a lobb y ist for Ca nn on . B ibbs ' p revious
lobbyist regist ration for C annon e xp ired on December 3 1 , 2 0 1 5 . The N CBA was not and has not
been r eg i ste r ed at any t im e du r ing 2 0 1 6 as a principal, and Bibbs was not and has not at any time
D i v is i o n , and to arrange an inter v iew . An appointment was made and Cartret con fir me d w ith
Jones the i te m s he had stated in h is com p la i nt . During the p hone conversa t ion Ca rt ret advised
representing Ca nn on .
S A J ones ad v ised D i v i s i o n Director Broun of Ca r tret ' s claim that Bibbs had appeared before the
si g nup sheet and attendance record for t he February 12, 2016 hearing . It was con fi rmed that
Bibbs addressed the Commission re g ardin g ba i l bonds and identified himself as representing
The in fo r m ation obtained t hrough the official records for the N . C . Cou rt s Commission , and the
Minutes o f H ouse Commi t tee on J udi c ia ry I II , for the June 1 5 , 2 0 1 6 and June 2 8 , 2 0 1 6 hearings
along with the associated signup shee t s indepe n dently co rr oborates i nformat i on given by
complainant Ca rt re t .
9
It appears from the known evidence that Bibbs, Thompson, and McClain have a close business
relationship. Also as stated above, evidence was discovered indicating that Thompson and
McClain had a business relationship in Premier Judicial Consultants, LLC, which is the parent
company of Cannon Surety. It should also be noted that the NCBA's parent company is
Rockford-Cohen Group. The Rockford-Cohen Group lists Lyne Thompson as the company's
After the Division substantiated that B i b b s did in fact address the NC Court Commission and
stated he was representing the NCBA and Cannon, and having confirmed the NCBA had not
registered as principal for 2 0 1 6 , and Bibbs had not registered as its lobbyist for 2 0 1 6 , this Affiant
checked the available records contained in the Division database for any financial accounts
It was discovered during the examination of D i v i s i o n files that fees associated with NCBA and
RCG since their formation (with the exception of a cash payment for $ 1 2 5 . 0 0 on March 1 , 2 0 1 2
related to the creation filing for RCG) have been paid for by All American B a i l Bonds (AABB)
AABB was formed April 27, 20 0 9 by Carl B . Valentine and James S . Banks. Valentine is listed
as the registered agent, and Valentine and Banks are both listed as member, organizer on the
Articles of Organization.
Reinstatement fees for RCG (after it was administratively dissolved on 2 - 5 - 1 5 ) were paid for
with check #6831 dated 3-31-15 and drawn off Wells Fargo account (#2000042501730)
belonging to AABB. RCG is the parent company o f N C B A . The check was signed by Rebecca
L. Terrill (Terrill). Rebecca Lee Terrill is listed as the Manager for AABB.
Reinstatement fees for NCBA (after it was administratively dissolved on 2 - 5 - 1 5 ) were paid for
with check #6832 dated 3-31-15 drawn off the Wells Fargo account #2000042501730 of
It appears suspicious that A l l American Bail Bonds is paying the corporate fees for Thompson's
companies (Rockford-Cohen Group and NC B a i l Academy), entities that are not apparently held
their association with Premier Judicial Consultants, LLC (PJC) the parent company of Cannon.
It is also su s p i c i o u s that AABB would be handling the Lobbying Principal expense reports
related to N C B A and Cannon. On April 22, 2 0 1 5 , Vicky Terrill (VTerrill) sent the Division an
emai l containing " Lobbyist Paperwork Signed and Notarized " . The emai l was c ar b on co p ied to
ex p e n se re p orts for 2 0 1 5 related to Cannon and N CBA. The docu m ents w ere a l so not a r i zed by
VTerrill. A check of the S ecreta ry of S tate notary database revealed t hat V ic k y M ar i e T e rr i l l ' s
nota ry a p p l i c a t i o n l i s t s her occupation as " Loss Prevention " and her e m p l oyer as AAB B.
I O
Cannon was not registered as principal prior to July 8, 2 0 1 6 , and at no time during 2 0 1 6 has
NCBA been registered as a principal. Also Bibbs was not registered as a lobbyist in 2 0 1 6 prior
to July 1 5 , 2 0 1 6 , and then only for Cannon. As such there are no principal or lobbyist expense
reports that can be obtained to substantiate whether Bibbs was paid by NCBA or Cannon.
Currently Bibbs and M c C l a i n are delinquent in filing lobbying reports for 2 0 1 6 , a n d McClain is
LOBBYING VIOLATIONS
(a) A lobbyist s h a l l fi l e 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 i n d i v i d u a l to lobby without registering
within one business day of engaging in any lobbying as defined in G.S. l 20C- J 00(9) unless exempted by this
Chapter.
(b) The form of the registration s h a l l be prescribed by the Secretary of State, be filed electronically, and
shall include the registrant's full name, firrn, 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 s h a l l electronically fi l e 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
changed.
(d) Unless a resignation is filed under G . S . l20C-210, each registration statement of a lobbyist re q uired
u nder this C h a pter s ha l l be effective from the date of fi l i n g until J anua ry 1 of the followin g year. The lobb y i s t s h a l l
fi l e a new registration state m ent after that date , and the applicable fee shall be due and p ayable .
(e) E ach l obbyist shall identi fy himself or herself as a lobbyist p rior to en g a g in g in lobb y in g
c o m m u n i cations or acti v i ties w ith a designated i n d i v i d u a l . The lobbyist s h a l l also d i s c l o s e the ident i ty of the lobb y i s t
(f) In a d diti o n to the infor m ation re qu ired for registration under subsection (b ) of this section , former
e m p lo yees of a State a g ency who register as a lobbyist within six months after v olunta ry se p arati o n or s e p arat i on for
cau se from e m p l oy m ent w i th a S tate agency shall also indicate which State agency with which the former em p lo y ee
CRIMINAL PROVISIONS
( a) W hoe v er willfully v iolates any pro v ision of A r t icle 2 or A rt i c l e 3 of this C hapter shall be guil ty of a
C l ass I m i s d e m e a n o r , e x cept as pro v ided i n those A rt icles. In a d d i t i o n , no lobbyist who is con v icted of a v iolation of
the pro v isions of t h i s Chapter s h a l l in any way act as a lobbyist for a period of two years from the date of c o n v i c t i o n .
(b) In a d d i t i o n to th e c r i m i n a l penal t ies set forth in this section, the Secreta ry of State may levy c i v i l fi nes
for a violation of any pro v ision of A rticles 2, 4, or 8 of thi s C h apter up to fiv e thousand dollars ( $ 5 , 000 ) per
violation. In a d d i t i o n to the c r i m i n a l penalties set forth in this section, th e Commission may le vy c i v i l fin e s for a
violation of any provision of t his Chapter except A rt i c l e 2, 4, or 8 of t h i s C hapter up to fiv e thousand dollars
( $ 5 , 000 ) p er violation. ( 1933 , c. l l , s. 8; 1975, c. 8 20, s. I ; 1 9 9 l , c. 740, s. I . I ; 1 9 9 3 , c. 539, s. 9 14; 1994, Ex.
1 1
N.C.G.S. 120C-206. Lobbyist p r i n c i p a l ' s authorization.
(a) A written authorization signed by the lobbyist principal authorizing the lobbyist to represent the principal
shall b e 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 I of the
following year, the lobbyist registration is effective from the date of fi l i n g of the lobbyist registration and all reports
(b) The form of the written authorization s h a l l be prescribed by the Secretary of State, be filed electronically,
and s h a l l i n c l u d e the lobbyist p r i n c i p a l ' s full name, complete address, and telephone number, name and t i t l e 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 s h a l l be electronically fi l e d with the Secretary of State no later than I O business
days after any change in the information on the principal's authorization. Each supplementary authorization shall
27. l ( e ) . )
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
found in the Wells Fargo Bank account #2000042501730 of All American Bail Bonds.
The D i v i s i o n received information from multiple sources that Mark Bibbs was actively lobbying
Beginning January 1 , 2 0 1 6 , Bibbs was not registered as a lobbyist for any entity until he
principals authorizing Bibbs as their lobbyist until Cannon registered on July 8, 2 0 1 6 . NCBA
and Cannon were not registered as principals when Bibbs (by his own statement) represented
T h e affiant reviewed emails authored and transmitted by Attorney Mark Bibbs that were sent to
legislators, legislative employees, or p u b l i c servants with the intent to either influence or attempt
The affiant reviewed the transcript of the audio fi l e (recording) obtained related to Bibbs
s i g n u p sheet and attendance records. The affiantobserved where B i b b s signed in and gave Long
addressed the Commission regarding bail bonds after identifying himself and stating he
12
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 confirmed Bibbs was in attendance and actually addressed the Committee
on June 2 8 , 2 0 1 6 . The affiant reviewed the audio record from the June 2 8 , 2 0 1 6 meeting and
B i b b s can be heard addressing the Committee and stating he represents Cannon Surety.
Mark Cartret (complaining witness) stated Bibbs assured him that he was being well paid, and
Cartret submitted to the D i v i s i o n text message exchanges between him and Bibbs to support his
statement. In one text message Bibbs advises his fee is $ 1 0 , 0 0 0 per month for 1 2 months for 2
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 .
l 2 0 C - 4 0 3 ( d) obligation to fi l e and disclose to the Division the amount of money paid for Bibbs
Mark Bibbs is currently delinquent in fi l i n g Lobbyist expense reports for the first two quarters of
This Affiant found information in the Division files tending to show that fees related to NCBA
were routinely paid for by AABB. A A B B ' s checks to the Division reveal their financial
It is reasonable and prudent to expect that the items requested pursuant to this search warrant are
maintained within the custody of Wells Fargo Bank. United States Treasury and North Carolina
Banking C o m m i s s i o n regulations (implementing Title I and Title II of the United States Public
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;
c. copies of a l l checks, drafts, electronic wires, money orders and cashier's checks
Further, it is required that the following information be maintained for a period of two (2) years:
1 3
c. all documents necessary to trace and supply the description of a
Therefore, this affiant has probable cause to believe that the property to be seized w i l l be found
in the W e l l s Fargo Bank account #2000042501730 of All American Bail Bonds (AABB). The
affiant also has probable cause to believe that Lyne Thompson (NCBA) used her relationship
with Valentine (founder of AABB) and the financial account of AABB at Wells Fargo bank to
pay Mark Bibbs for his services as a lobbyist to oppose SB 508 while Mark Bibbs was not
registered as a lobbyist with the D i v i s i o n , and when NCBA was not registered as a principal in
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, SpecilAgent
1 4
Wake County )
I, Joal B. Broun, being first duly sworn, depose and say as follows:
1. I am currently the Director of the Lobbying Compliance Division of the North Carolina
Department of the Secretary of State (Department) 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
2. I am qualified and competent to testify about the matters contained in this affidavit, and
my statement set out herein is made on 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 designated individual definition includes legislator, legislative employee, or public servant.
authorizing the lobbyist to represent the principal within 20 business days after the lobbyist's
registration.
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
lobbyist principal under G . S . 1 2 0 C - 2 0 6 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. 120C-
210.
8. Under G . S . 1 2 0 C - 4 0 1 ( a ) and 120C-402, lobbyists must file quarterly expense reports
"designated individual";
immediate family member, in effect during the reporting period or the previous 1 2
months;
principal; and
expense reports with the Secretary of State. These reports reflect the following:
immediate family member, in effect during the reporting period or the previous 1 2
months;
principal;
f. The cumulative combined total of all payments made to lobbyists during the
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
competent jurisdiction.
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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 one of its Journal Articles
'
the Bar considers lobbying as law related services. In the comments to Rule 5 . 7 , it states:
or environmental consulting.
1 3 . Mr. Bibbs registered as the sole lobbyist for NC Bail Academy on February 8, 2 0 1 5 .
Lyne Thompson, the authorized officer o f N . C . Bail Academy, filed the principal
registration.
1 4 . N . C . Bail Academy is the trade name for a limited liability company, N . C . Bail
Academy, LLC created on March 6, 2 0 1 2 . The creation document lists Lyne Thompson
1 6 . The NC Bail Academy is an entity that provides education courses and continuing
Insurance.
1 7 . Dallas McClain, the authorized officer for Cannon Surety, LLC is one of two instructors
for NC Bail Academy. On October 29, 2 0 1 4 , the Department, through its Corporation
delinquent in filing at least one annual report and therefore the N . C . Bail Academy was
a. Because of the notice of dissolution, the law requires that the limited liability
company facing such administrative dissolution must pay for the annual report fee
b. On April 6, 2 0 1 5 , All American Bail Bonds, L . L . C . paid the annual fee for N . C .
Bail Academy and the late annual report fee to have N . C . Bail Academy
reinstated.
c. Rebecca Terrill is the signer of the All American Bail Bonds check for N . C . Bail
d. Thelast annual report filed lists Lyne Thompson as the General Manager.
meeting. The Visitor Registration Sheet of that meeting shows that Mr. Bibbs signed in
-3-
1 9 . At that February 1 2 , 2 0 1 6 meeting, there were five legislators present including the chair,
Representative Duane Hall, and the bill sponsor for Senate Bill 5 0 8 , Senator Michael
Lee. Commission member Marion Warren also attended the February 1 2 meeting. Mr.
Warren is the Director of the Administrative Office of the Courts and is a designated
20. When Chairman Representative Sarah Stevens asked for public comment, Mr. Bibbs was
the last speaker. Bibbs identified himself as the lawyer and lobbyist for the N . C . Bail
Academy, an organization who trains bail bondsman and Cannon Surety. He expressed
1
on behalf of his clients that he was opposed to Senate Bill 5 0 8 .
2 1 . On June 27, 2 0 1 6 , Bibbs sent an email to the members of the House Judiciary III
Committee'. In the email, Bibbs expressed his and his clients' opposition to Senate Bill
508.
I was just informed that the proponents of Senate Bill 5 0 8 are making
statements that a new PCS for Senate Bill 5 0 8 has now taken out the part
that my clients and I oppose. That being the 3 6 months expiration of bail
22. 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. Mr. Bibbs
operates his law firm under the name Bibbs Law Group.
1
See copy of recording of February 1 2 , 2 0 1 6 , N .C. Courts Commission (Representative Sarah Stevens presiding),
beginning at 1 : 4 8 : 1 3 .
2
Fifteen members of the House in the General Assembly.
-4-
2 3 . At the June 2 8 , 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.
24. On July 4, 2 0 1 6 , Bibbs received an email from Lyne Thompson that provided an email
. with the headline, "What NCBAA is not telling you!" The NCBAA is the North Carolina
Bail Agents Association and a competitor to the NC Bail Academy in the provision of
2 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
26. On that same day, Mark Cartret asked, "if Mark L. Bibbs, individually or through a
2 7 . On July 5, 2 0 1 6 , in the afternoon, a man who did not identify himself at that time asked
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.
2 8 . In July of 2 0 1 6 , I exchanged emails with Mr. Bibbs and Mr. McClain about Cannon
2 9 . 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.
3 0 . 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,
He knew Mr. Bibbs and that Bibbs constantly told him that he was "getting
paid." Mr. Cartret also said that Bibbs told him that "he (Bibbs) had got
Senate Bill 5 0 8 slowed down in House Finance." Mr. Cartret also said that
3 2 . Mr. Cartret's statements regarding Mr. Bibbs being down at the General Assembly has
been independently corroborated with documents from the General Assembly recording
-5-
3 3 . On July 29, 2 0 1 6 , Mr. Bibbs responded to my July 2 1 , 2 0 1 6 email. In his response, Mr.
Surety, LLC covered the General Assembly's long and short session, for the
3 4 . NC Bail Academy has not filed any of its 2 0 1 5 principal expense reports, including the
last one which would have indicated the amount of compensation paid to Bibbs for his
2 0 1 5 lobbying.
Joal H. Broun
County of Wake
Notary Public
Johnston County
Stale of N o r t h Carolina .
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s ::- ! ,!
! .: : .. - ,. .. 1
, . 1
W A K E COUNTY L
1
7 JU;J - G Pf-1 J : 09 SUPERIOR COURT DIVISION
MOTION TO SEAL
3
SEARCH WARRANT
:v:::.::Tb:ER OF , ,e-
&
NOW COMES the North Carolina Department of the Secretary of State, by and th.rough
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 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:
the commission of violation(s) of Chapter l 20C Article 2, N . C . Gen. Stat. l 20C-200 (Lobbyist
2. No person or entity has been charged with any crime referenced in Lobbying F i l e
4. The application for the search warrant, the search warrant and return, and the
jeopardize the D i v i s i o n ' 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
above-mentioned documents were sealed in the Office of the Clerk of Superior Court for Wake
compelling and outweighs any interest by the press or public in having access to the above
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
Assistant Attorneneral
P . O . Box 629
Raleigh, NC 27602-0629
T: ( 9 1 9 ) 7 1 6 - 6 6 1 0
F: ( 9 1 9 ) 7 1 6 - 6 7 5 7
2
j ': . : r: ["'"
STATE OF NORTH CAROLINA ' . - IN THE GENERAL COURT OF JUSTICE
SEARCH WARRANT
Lobbying C o m p l i a n c e D i v i s i o n DOCUMENTS
Carolina Lobbying Statute, specifically N.C. Gen. Stat. l 20C-200 (Lobbyist registration
2. No one has been charged with any crime and the i n v e s t i g a t i o n is ongoing.
applied for a search warrant to search bank records of a person or entity being investigated for
4. The search warrant 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 warrant and return, accompanying
affidavits, the Motion to Seal Search Warrant and Accompanying Documents, and this Order to
Seal Search Warrant and Accompanying Documents contain sensitive and confidential
information.
and return thereof, this M o t i o n and Order may hinder the success of the o n g o i n g investigation by
7. 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 hamper or impede this investigation and/or may
release information that c o u l d adversely affect persons who are not charged with committing a
c r i m e and materially prejudice further adjudicable procedures involving this investigation and
any subsequent prosecution and w i l l jeopardize the right of the state to prosecute a defendant or
of the application for the search warrant, the attachments and supporting affidavits the wan-ant,
the return of the warrant and any accompanying inventories of items seized, the Motion and
Order.
warrant issued on the above referenced date, and the return therefore, the Motion to Seal and th is
Order be sealed by the Clerk of Superior Court and the contents thereof not to be unsealed for a
............
'
I
Superior Court Judge Presiding
.\l