Another former employee accuses Sen. of insider trading

Tony Rand

December 16, 2009 9:18:30 PM PST
Another former employee of Law Enforcement Associates has accused North Carolina Senator Tony Rand of insider trading.A former sales director says Rand invited him to join a plan to manipulate company stock.

However, Rand says the claims aren't true.

Earlier this month, an ex-CEO accused the Fayetteville Democrat and state senator of insider trading in company stock to gain illegal profits.

LEA is based in Youngsville, NC and makes and sells undercover surveillance products, from tiny cameras to devices that can spot bombs under cars.

The former CEO claimed the company was breaking federal export laws and Rand illegally profited from the sale of stock in Raleigh-based First Citizens Bank.

Rand says he's targeted only because he's a well-known Democrat.

Lawyers for the former LEA execs say they stand firm behind the allegations.

Meanwhile, questions are being raised about the company's no-bid contracts with state agencies. However, LEA's current Chief Financial Officer Paul Briggs says the company is on the up and up.

"In some of those instances, you know, we could be the only company that would offer that product," he said. "So, it's a little misleading."

Briggs also says if there's an investigation, LEA's got nothing to hide.

Prior to the controversy, Rand announced he was stepping down from his state Senate seat to join Governor Beverly Perdue's administration as chair of the parole commission.

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