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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

Wake County D District !Kl 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

Wells Fargo Bank - A l l American B a i l Bonds

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

Wells Fargo Bank 09-13-2016

1 5 0 Fayettevile St., Raleigh, NC

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

!Kl 1.asearohwarrantissuedby: Supe_r__r_C_o_u_rt_J_udge_P__

. R__
i dge_w_a-y

D 2. consent to search g i v e n by:

D 3. other l e g a l justification for the search:

The following items were seized:

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

1 9 9 8 Administrative Office of the Courts

 Items Seized Continued:

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

D a. the owner of the premises searched.

D b. the owner of the vehicle searched.

[i] c. the person in apparent control of the premises searched.

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

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

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

D a. in the premises searched, i d e n t i fi e d 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

DeAnna Dobrowski, Service Manager, Wells Fargo Bank

1 5 0 Fayetteville St., 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 BEFORE ME

Date

Special Agent

Signature Name And Address Of Agency

t-==-----------==---------------1 North Carolina Department of the Secretary of State

D Assistant csc 2 South Salisbury Street, Raleigh, NC 2760 I

D Magistrate

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

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

In The General C o u rt Of Justice

Wake County D District Ii] Superior C o u rt Division

IN THE MATTER OF:

Name

INVENTORY OF ITEMS SEIZED

Wells Fargo Bank - A l l American Bail Bonds

PURSUANT TO SEARCH

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

I , the undersigned o ff i c e r , executed a search of:

Person. Premises Or Vehicle Searched Date Of Search

Wells Fargo Bank 09-13-2016

1 5 0 Fayettevile St., Raleigh, NC

This search was made pursuant to

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 2. consent to search given by:

-----------------------------
D 3. other legal j u s t i fi c a t i o n for the search: ---------------------------

The following items were seized:

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

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:

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:

D a. the owner of the premises searched.

D b. the owner of the vehicle searched.

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

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

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

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

D a. in the premises searched, i d e n t i fi e d 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

DeAnna Dobrowski, Service Manager, Wells Fargo Bank

1 5 0 Fayetteville St., 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

Date

Special Agent

Name And Address Of Agency

r-:,=-"-"iR-..:_:=c...=:..==---==--------..=;....;=-""'=-P-----i North Caro I ina Department of the Secretary of State

2 South Salisbury Street, Raleigh, NC 2760 I

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, 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

NC Bail Academy LLC

Rockford-Cohen G r o u p , LLC

All American Bail B o n d s , LLC

Mark L. Bibbs

Lyne T h o m p s o n

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:

NC Bail Academy LLC

Rockford-Cohen Group, LLC

All American Bail B o n d s , LLC

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

NC Bail Academy LLC

Rockford-Cohen Group, LLC

All American Bail Bonds, LLC

Mark L. Bibbs
Lyne Thompson

ATTACHMENT II

PREMISES TO BE SEARCHED

Wells Fargo Bank

1 5 0 Fayetteville St.

Raleigh, NC 2 7 6 0 1

2
 APPLICATION FOR SEARCH WARRANT

In the Matter of

NC Bail Academy LLC

Rockford-Cohen Group, LLC

All American B a i l B o n d s , LLC

Mark L. Bibbs

Lyne T h o m p s o n

ATTACHMENT III

AFFIDAVIT TO ESTABLISH PROBABLE CAUSE

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

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 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

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, N C ; and Wake Technical Community College/Raleigh,

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

power to conduct investigations of violations of Articles 2, 4, and 8 of Chapter 1 2 0 C (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 (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

contractual lobbying agreement with Bibbs.

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

described as lobbying activity.

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

was lobbying for were also not registered as principals.

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

company ofMc_Clain's Cannon Surety, LLC (Cannon).

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

Residency Investment Venture Enterprises, LLC (ARRIVE).

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

bibbslawgroup@gmail.com < b i b b s l a w g ro u p @ g m a i l . c o m > Thu, F eb 1 1 , 2 0 1 6 al 1 1 : 4 0 AM

T o : D a l l a s M c C l a i n < d u h k i n g fi s h @ y a h o o . c o m > , ' ' lyne.thompson@gmail.com" <lyne.thompson@gmail.co

C c : L e a n n e W i n n e r < l w i n n e r @ n c s b a . o r g > , K i m Crouch - NC Bar A s s o c i a t i o n L o b b y i s t < k c r o u c h @ n c b a r . o r g > ,

Bert K e m p < ro b e r t . c . k e m p 4 . m i l @ m a i l . m i l >

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

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 h i s office

there to speak against i t also. One or both o ly o u . i n my absence, s h o u l d speak against it as w e l l .

H o p e fu l l y. there r e m a i n s enough o p p o s i t i o n to keep it bottled u p !

All m y very best regards,

M a r k L. B i b b s

--------- ---------------

5
 Dallas McClain responded to Bibbs' email with the following:

On Feb 1 1 , 2 0 1 6 , at 1 1 :45 AM, duhkingfish <duhkinglish((l)yahoo.com> wrote:

ten four consigl iere.

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

administratively dissolved. It had been administratively dissolved on March 4, 2 0 1 6 , due to failure

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

Bibbs referenced advertisement emails:

F ,m: Bibb, L1,;-: Grout><b1bU:;roL7{1.J.:=i.;l.:c..::-

Due- :-.1.1:. !l.0!6a1 PMEDT

T,

Subject TIOS JS A'.\ .O\"EP.TISEME'iT FOP.LEGAL SEP.\"JCES

R..iply-To: c::b:ObJUwpoo.:;,.p::aJ.:oc>

El:-""'rd,'.-,;Q)tfffl.Y,

YN3"'1<YM:::1-

Bibbs Law Group

This is an Advertisement for Legal

Services
.\f::.y n:I\.!.(

Free consultation for B a i l Agents who

have matters before the Noith Carolina

Department of Insurance
=::1bt11 ti ..... Cr,n:;,

OVER 15'rE!.SOF STA1E'.',10:':: S.:.IL.AOENT lEG,;1.

1.;.:l"IEP.;."01.::::ss,,sT FC il-iE l'.OR'ir-:.:..R:::l>N..:. 5,:.11..:..c..:.oEt,f'(

.:..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

closes with "We respectfully ask you to vote NO on this b i l l . "

6
See referenced email below:

From: Mark Bibbs <bibbslawuroup@!!mail.com>

D a t e : June 1 4 . 2 0 1 6 at 8 : 3 5 : 4 7 PM EDT

To: cdcnning(a'lncbar.org

Subject: Logic, Reason & C o m m o n Sense O p p o s i t i o n to S B 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 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

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 2 0 1 2 that created a monopoly for them to be the sole approved provider of

Continuing Education for al l bail bondsmen in North Carolina.

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,

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

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.

We respectfully ask you to vote NO on this bill.

All my very best regards.

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

Raleigh. North Carolina. 27603

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

the House Judiciary III the following day (June 1 5 , 2 0 1 6 ) .

See referenced email below:

7
 l'-"1 Gm2il M.1rl( C;i.rtrct <m:i,kc:irtrct@gmll.com>

Fwd: PCS and summary for Senate Bill 508

Mork Bibb <bibbslaw;rouF@9mail.co,n> Tue, Jun 14, 2016 at 1 1 : 52 PM

To Rol.:ind Loftin r.rlofti:17SfJyahco.com>. Marlit Cartrct crr.arkcartrt"t@mail.com>

nolond & Corct

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!

Senl from my iPhone

All my vtr/ !:s: res:irds.

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

Ra!ei,gh, Nor'.h Carol:na. 27603

CONFIDENTIAL AND PRIVILCGCD

Unles ctnerw.se in::2:::ated er cavious frcm the nature of the folkmi,:9 ccmmvnicaticn. the

in!::irmation c.ontaintd herein is ancmev-cncnt pri',ileQed ar.:i confential inf::rmation/A'Ork

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

disscir.innnon, distribution or coi:yir:g ol this comrr.ur.ieotio:, is proibitcd s:rictly. If you have

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

Y'J'J ma; hil\'" of this l

comrn.in cation

ae9in orNc.rdcd mcssaoe:

Fr om: "R ep. FricLy Ham:;.ooR <Pri coey.Hamsca@nctcg.ne:>

Date: June 14, 2016 e: 6:58:47 Pl.'\ EDT

To: ':,:bbslaw9roup@9m:Jil.em <bit;sta11:1r::p@gma11 corn>

SubJocl: Fwd: PCS :rnd ::: u m m J ,Y for So narc Bill SOS

s,nl m
frn ITT
/ iPh:m e

9egin !or.varded messag e:

Fr om: "81 11 Pattcrsc n {Ll!g1slatfllc Analysis)" <BI.Patlen@nc!cg.r:cl<rrall

to: B ill.Pa lterson@ncleg.net> >

Date: June 14, 2016 at 4:5:27 PM EDT

To: '"@H ou!;;e/Judiciary Y <Hcuse_Judiciary_lll@ncleg.net<ma1lo:House_Judidary_lil@

nclcg.net>>

Cc: "Sen. Shirley B. Rand l eman <Shllle,..Rar.dleman@ncleg.net<m

ailto:Shirley.Randle:nan@ncleg.net>;,,, "Sen. Michael Lee <Mic!iael.Lea@ncleg.net<maiito:

Mlch.iel.Lcc@ncleg.net>>

Subje,.;t PCS and summary for Senate Bill 508

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

Legislative Analysi Division

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 ,

2 0 1 6 and June 2 8 , 2 0 1 6 hearings along with the associated signup sheets.

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

McClain signed in and gave his firm as Cannon Surety.

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,

and listed NC Bail Academy as her firm.

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

addressed the committee in opposition to the b i l l .

Lobbying Compliance Division Case 2 0 1 6 - 0 2 was initiated after the Divis i on determined there was

sufficient e v idence to suppo rt an investigation . The pu rp ose of the investigation is to determ i ne

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 .

On J u l y 8 , 2 0 1 6 , D a l l a s M c Cla in sub m i tt ed a Principal registration for Ca nn on indicating Mark

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

in 2 0 1 6 been regi s tered as its lobbyist .

On Au g u st 3 0 , 2 0 1 6 , S A J ones contacted Mark Cartret by p hone regarding his complaint to the

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

SA J ones that B i b b s had a l so appeared on Februa ry 1 2 , 2 0 1 6 before the N . C . Cou rt s Commission

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

NC Cou rt C o m m i s s i o n . Director Broun was a b le to o b tain a co py of the audio fi l e ( recording) ,

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

C a n n on and the NC B a i l A cadem y (N C B A ) .

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

organizer, member, and registered agent.

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

associated with the NCBA, RCG, or Cannon.

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)

financial account # 2 0 0 0 0 4 2 5 0 1 7 3 0 located at Wells Fargo Bank.

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

AABB. The check was signed by Terrill.

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

by A A B B . Thompson is known to be connected to A A B B ' s founder (Carl Valentine) through

their association with Premier Judicial Consultants, LLC (PJC) the parent company of Cannon.

Thompson is also connected to McClain through PJC, and 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

b oth M c C l a i n and T h o m p s o n . The documents attac h ed to the e m a i l were fi rst qu a rt er p rinc i p a l

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

also delinquent in fi l i n g lobbying reports for the last two quarters of 2 0 1 5 .

LOBBYING VIOLATIONS

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

(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

p r i n c i p a l connected to that lobbying communication or acti v i ty .

(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

was e m p l oyed . ( 1 9 3 3 , c. 1 1 , s. 2; 1973, c. 1 4 5 1 ; 1 9 7 5 , c. 820, s. l ; 1 9 8 3 , c. 7 1 3 , s. 5 1 ; 1 9 9 1 , c. 74 0 , s. I . I ; 200 4 -

203, s. 5 0(a); 2006-201, s. 1 8 ; 2 0 0 8 - 2 1 3 , ss. 13 , 90; 2 0 0 9 - 5 4 9 , s. 3; 2 0 1 0 - 1 6 9 , s. 4( c ); 2013-360, s. 27.l(c).)

CRIMINAL PROVISIONS

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

( 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.

S e s s . , c. 24, s. 14(c); 2 0 0 5 - 4 5 6 , s. I ; 200 6 -20 I , s. 1 8 ; 200 6 -2 5 9 , s. 43.5(a).)

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

due under A rt i c l e 4 of this Chapter s h a l l b e fi l e d .

(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

i n c l u d e a complete statement of the information that has changed. ( 1 9 3 3 , c. 1 1 , s. 4; 1 . 9 6 1 , c. 1 1 5 1 ; 1 9 7 5 , c. 820, s.

I ; 1 9 9 1 , c. 740, s. I . I ; 2 0 0 5 - 4 5 6 , s. I ; 2 0 0 6 - 2 0 1 , s. 1 8 ; 2 0 0 7 - 3 4 7 , s. 4; 2 0 0 8 - 2 1 3 , s. 90; 2009-549, s. 4; 2 0 1 3 - 3 6 0 , s.

27. l ( e ) . )

PROBABLE CAUSE TO BELIEVE EVIDENCE OF

THE CRIME IS LOCATED AT WELLS FARGO 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 v i o l a t i o n s of Chapter 120C-200 of the N . C . General Statutes w i l l be

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

in opposition to SB 5 0 8 as recently as June 2 8 , 2 0 1 6 without being registered.

Beginning January 1 , 2 0 1 6 , Bibbs was not registered as a lobbyist for any entity until he

registered on July 1 5 , 2 0 1 6 with Cannon as a principal, and no entities were registered as

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

both entities before the NC Courts Commission on February 1 2 , 2 0 1 6 .

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

to i n fl u e n c e legislative or executive action, or both regarding SB 5 0 8 .

The affiant reviewed the transcript of the audio fi l e (recording) obtained related to Bibbs

appearance before the NC Court C o m m i s s i o n hearing on February 1 2 , 2 0 1 6 , and the related

s i g n u p sheet and attendance records. The affiantobserved where B i b b s signed in and gave Long

Leaf P i n e C o n s u l t i n g (LLPC) as h i s firm. A review of the recording confirms that B i b b s

addressed the Commission regarding bail bonds after identifying himself and stating he

represented both the NC B a i l Academy and Cannon.

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

years with 5 0 % down. Non-negotiable.

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

lobbying activities in 2 0 1 5 and 2 0 1 6 .

Mark Bibbs is currently delinquent in fi l i n g Lobbyist expense reports for the first two quarters of

2 0 1 6 as it relates to Cannon Surety.

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

institution is W e l l s Fargo Bank account number #2000042501730.

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

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

respectively) mandate that the following information on demand (checking) accounts, savings

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

(5) years:

a. signature cards;

b. statements, ledger cards, or other records d i s c l o s i n g all account transactions both

deposit and withdrawal; and

c. copies of a l l checks, drafts, electronic wires, money orders and cashier's checks

drawn from or against funds within each account.

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

a. a l l documents necessary to reconstruct activity within a checking

account i n c l u d i n g 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

1 3
 c. all documents necessary to trace and supply the description of a

check or other item deposited into a checking account

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

violation of N . C . G.S. l 20C-200(a). I am aware that evidence of such criminal violations is

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

North Carolina Department of the Secretary of State

1 4
Wake County )

) AFFIDAVIT IN SUPPORT OF SEARCH

) WARRANT II OF JOAL H. BROUN

In Re Mark Bibbs, N . C . Bail Academy Lobbying 2 0 1 6 - 0 0 2

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

have been since 1 9 8 6 .

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 definition of"lobbying" is found in G . S . 1 2 0 C - 1 0 0 ( 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 1 ) . The definition of"designated individual" is found in G . S . 1 2 0 C - 1 0 0 ( a ) ( 2 ) .

The designated individual definition includes 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 . 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

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 . 1 2 0 C - 4 0 1 ( a ) and 1 2 0 C - 4 0 3 , lobbyist principals 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 principal

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;

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 ) ( l 0) with a

value of more than ten dollars ( $ 1 0 . 0 0 ) all gifts given under G . S . 1 3 8 A - 3 2 ( e ) ( 1 0 )

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

f. The cumulative combined total of all payments made to lobbyists during the

registration period for lobbying.

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 one of its 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 . 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

authorization on February 8, 2 0 1 5 . Mark Bibbs paid for the lobbyist 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

and Sharon Gupton as members/organizers. The currentregistered agent is Lyne

Thompson. Ms. Thompson is also the General Manager o f N . C . Bail Academy.

1 5 . According to its own website, NC Bail Academy is a subsidiary of the Rockford-Cohen

Group. Ms. Thompson is listed as the Rockford-Cohen Group's registered agent,

organizer, and member.

1 6 . The NC Bail Academy is an entity that provides education courses and continuing

education classes to bail bondsman to become certified before the Department of

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

Division sent a notice of grounds to dissolve N . C . Bail Academy because it was

delinquent in filing at least one annual report and therefore the N . C . Bail Academy was

not in compliance with G . S . 57D-6-06.

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

of $200 and late annual report fee of $ 1 0 0 to be reinstated.

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

Academy's reinstatement and annual report fees.

d. Thelast annual report filed lists Lyne Thompson as the General Manager.

1 8 . On February 1 2 , 2 0 1 6 , the North Carolina Courts Commission held its February 2 0 1 6

meeting. The Visitor Registration Sheet of that meeting shows that Mr. Bibbs signed in

under the firm section as Long Leaf Pine Consulting.

-3-
 1 9 . At that February 1 2 , 2 0 1 6 meeting, there were five legislators present including the chair,

Representative Sarah Stevens, Senator Tamara Barringer, Representative Dan Bishop,

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

individual who can be lobbied.

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.

a. In that email, Bibbs states in part,

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

bonds provision is removed, we are still opposed to Senate Bill 5 0 8 because

it does several other things. (Emphasis Added).

b. At the end of his email, the following is printed:

Bibbs Law Group

OVER 16 YEARS OF STATEWIDE BAIL AGENT LEGAL REPRESENTATION.

LAWYER AND LOBBYIST FOR THE NORTH CAROLINA..BAIL..A.CADEMY

- - ..... __

AND CAN.NON SURETY, L L C - - - .

- LOBBYIST FOR BAIL B O N D ISSUES BEFORE T H E NORTH CAROLINA

----
G E N E RA L ASSEMBLY

GRADUATED FROM U N C . C O L L E G E - 1 9 9 2 & LAW S C H O O L - 1 9 9 5 .

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

continuing education for bail bondsmen.

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

responded that he was not registered.

26. 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 . .

2 7 . On July 5, 2 0 1 6 , in the afternoon, a man who did not identify himself at that time 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.

2 8 . In July of 2 0 1 6 , I exchanged emails with Mr. Bibbs and Mr. McClain about Cannon

Surety's registration. There was no communication about N . C . Bail Academy.

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,

Mr. McClain, and Ms. Thompson lobbied without being registered in 2 0 1 6 .

3 1 . On July 28, 2 0 1 6 , I called Mr. Cartret who told me that:

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

other people witnessed Bibbs lobbying.

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

of meetings, minutes, and attendance sheets.

-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.

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.

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.

3 5 . Currently, NC Bail Academy is not registered as a lobbyist principal for 2 0 1 6 . Mark

Bibbs is not registered as a lobbyist for NC Bail Academy for 2 0 1 6 .

FURTHER THE AFFIANT SA YETH NOT.

This the ;II, day of September, 2 0 1 6 .

NORTH CAROLINA DEPARTMENT

OF THE SECRETARY OF STATE

Joal H. Broun

Director, Lobbying Compliance Division

State of North Carolina

County of Wake

Sworn to and subscribed before me

this the I day of September, 2 0 1 6 . JENNELL BAUGHMAN

Notary Public

Johnston County

Stale of N o r t h Carolina .

My commission Expires 1{1:2.L,izQJ

My Commission Expires: / I - I - cx'D( \o

-6-
 s ::- ! ,!
! .: : .. - ,. .. 1

, . 1

STATE OF NORTH CAROLIN IN THE GENERAL COURT OF JUSTICE

W A K E COUNTY L
1
7 JU;J - G Pf-1 J : 09 SUPERIOR COURT DIVISION

,./ ... \ ' < : t'v '""

. . . , , I ; ' 0.S.C.

MOTION TO SEAL
3
SEARCH WARRANT
:v:::.::Tb:ER OF , ,e-

&

North Carolina Secretary of State, ACCOMPANYING

Lobbying Compliance Division DOCUMENTS

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:

1. The North C a r o l i n a Department of the Secretary of State, L o b b y i n g Compliance

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

the commission of violation(s) of Chapter l 20C Article 2, N . C . Gen. Stat. l 20C-200 (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 F i 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 w i l l be

executed without unnecessary d e l a y .

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

a c c o m p a n y i n g affidavits and documents contain sensitive and confidential i n f o rm a t i o n ,

5. The release of the above-mentioned documents to the p u b l i c at this time w o u l d

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

evidence related to this matter.

6. It i s in the best interest of j u s t i c e and would afford protection to a l l p a r t i e s i f the

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

County until further order of the Court.

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

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

mentioned documents u n t i l further order of the Court.

 8. W h i l e 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 [. IJ day of September, 2 0 1 6 .

Jerem . i n d s l e y -Bar No. 2 6 2 3 5 )

Assistant Attorneneral

North Carolina<I:k{artment of Justice

On behalf of the North Carolina Department

of the Secretary of State

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

j lindsley .ncdoj. gov

2
 j ': . : r: ["'"
STATE OF NORTH CAROLINA ' . - IN THE GENERAL COURT OF JUSTICE

WAKE COUNTY 2 0 / 7 ..JU : J -6 PM I; SUPERIOR COURT DIVISION

09
IN THE MATTER O F : ,;: ..,._-. . . . . ' .... ,_. . . r-, ,__ " ORDER TO SEAL
J . : i , \., . .) , l, ,

SEARCH WARRANT

Investigation by : ';' &

North C a r o l i n a Secretary of State, --- .. ....: ACCOMPANYING

Lobbying C o m p l i a n c e D i v i s i o n DOCUMENTS

THIS C A U S E 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 C o m p l i a n c e

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

regarding allegations of the c o m m i s s i o n of v i o l a t i o n s of Chapter 120 C Article 2 of the North

Carolina Lobbying Statute, specifically N.C. Gen. Stat. l 20C-200 (Lobbyist registration

procedure) and N . C . Gen. Stat. 1 2 0 C - 2 0 6 (Lobbyist P r i n c i p a l ' s Authorization).

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.

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

violations o f N . C . Gen. S t a t . 120C-200 a n d 120C-206.

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.

6 . That, at t h i s t i m e , p u b l i c a t i o n of the contents o f the warrant a p p l i c a t i o n , the warrant

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

the North Carolina Department of the Secretary of State

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

the right of the defendant to receive a fair trial or w i l l u n d e r m i n e an o n g o i n g i n v e s t i g a t i o n .

 8. That the interest ofjustice w i l l best be served by temporarily maintaining the secrecy

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.

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 th is

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

period of 90 days herefrom.

Tlis the 13th day of September, 2 0 1 6 .

............

'
I
Superior Court Judge Presiding
.\l