AP: Carolinas politicians get payouts from lender

CHARLOTTE, NC (AP) — An Associated Press investigation has found that soon after taking office, North Carolina Gov. Pat McCrory and U.S. Rep. Mark Sanford of South Carolina accepted six-figure stock payouts from Tree.com, the corporate parent of the online mortgage broker LendingTree.

The two Republicans served as directors at the Charlotte, North Carolina, company, which regulators have accused of deceiving its customers. Both resigned from Tree.com’s board after winning election, which would have rendered their unvested stock worthless had the board not taken special action to provide them early payouts.

Ethics experts tell the AP that the early vesting of shares for elected officials is uncommon and raises significant concerns, though it remains unclear whether it breaks the law.

McCrory and Sanford deny doing anything improper.

Communications Director Josh Ellis responded, “The governor has done everything in a proper and ethical manner. This is a classic example of partisan drive-by journalism that deliberately misrepresents the facts. The AP is making reckless accusations through anonymous people about laws that they cannot cite.”

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Leave a Reply

Your email address will not be published. Required fields are marked *