Carney says company name was a joke, apologizes for 'distraction'

Commissioner Chris Carney – who told town officials that Mayor Chris Montgomery applied for a job with local developers who had business before the town – was himself listed as a member of a company with one of those developers.

Carney and Langtree Group developer Brad Howard are listed as managing members of “Slush Fund, LLC,” a company that was created in October 2008 and dissolved effective Dec. 31, 2009, according to documents filed with the N.C. Secretary of State.

But Carney said the company was actually a charitable concept turned joke. “I had nothing to do with the corporation of that business except that I was in the initial conversation about helping local charities process credit cards for donations,” he said, pointing out that his signature is not on any of the documents filed with the Secretary of State.

Carney said the initial concept of the business – to help smaller Mooresville charities accept credit-card payments and keep the processing fees – was a joint idea of his and Howard's, both of whom have sat on non-profit boards like the United Way, YMCA and Dove House Children's Advocacy Center.

“Brad and I both sat on a charitable fundraising committee (actually several) and there was a need for credit card processing,” Carney wrote this week in an e-mail to the town board, town attorney and a Mooresville resident who confronted him about Slush Fund LLC after it was brought to light in the comment section of the Report.

“To the best of my memory, a representative from Heartland (Payment Systems) brought this to Brad and we looked into it as a possibility,” Carney wrote. “They needed a corporate ID for processing. I was really only involved in the preliminary discussions and had nothing to do with the filing.”

The Slush Fund name “was my idea,” said Carney's childhood friend, Jon Wright, who is also listed as a managing member of the company. He said the company was named Slush Fund “because it was not designed to make money – it was just designed to pass savings on.

“Unfortunately, Chris's name got added, and I don't know how,” he said.

Wright, who lives in Hickory, said he has always viewed Carney as a friend and not a political official. “I guess I need to change that,” he said.

Howard agreed that the company was named Slush Fund “in jest.”

Carney said that upon learning of the prank name, “I asked (Howard) not to have my name associated with it as I thought it to appear inappropriate. I did not like my name being associated with something called slush fund.”

He said that he and Howard “found a better way to run the credit cards and moved on.”

Last month, Carney informed fellow commissioners that Mooresville's mayor had sought employment with Langtree the day before the developers were to appear before the town board for an adjustment to their tax district. Carney called Montgomery's pursuit of employment with Langtree “an unfortunate and certainly improper situation” that “needs to be dealt with.”

The developers rejected Montgomery's application because they had business before the town, Carney told commissioners. “They felt it inappropriate to even be perceived as a conflict,” he said. “I think we should thank them for their integrity!”

In a letter to Langtree's Rick and Brad Howard, Carney wrote: “Any elected (official) seeking a job with organizations that have business before the town is inappropriate, but certainly your situation, tax districts and joint infrastructure projects, makes it that much worse. Please accept my apology and my sincere appreciation for your making me aware of this issue.”

So what makes Carney's involvement with Slush Fund LLC and Howard any different?

“This was never a real company, and I never received nor attempted to receive any income or opportunity from this entity,” Carney said. “I actually think I paid a nominal amount to dissolve it.”

Carney submitted a copy of his personal taxes to Town Attorney Steve Gambill this week in case commissioners or the public has questions about whether he profited from the business. Gambill confirmed on Wednesday that Carney made no personal money from his association with Slush Fund, LLC.

Still, Carney said he fully understands that having what appears to be a business with a developer would seem improper. “And for that, I'm sorry,” he said, adding, "I feel terrible that this is a distraction for the citizens of Mooresville.”

Carney said he has never hidden the fact that Howard is among his friends. “I have made that as a public statement on several occasions,” he said. “I have friends in many circles that do many things, and it's never gotten any of them influence on our town board.”

Interestingly, on the same day the articles of corporation for Slush Fund, LLC were filed with the Secretary of State's office, on Oct. 17, 2008, Carney was quoted in the Report saying: “I have business with developers, and I’ve had wine with developers – I’ll be the first to tell you.” However, he said, “A glass of wine doesn't buy a vote, and if (it does), that's a bad thing.”

Carney, who owns a title insurance business, said he has also played golf with developers but that he pays his own way.

He said he once recused himself from voting on an issue because it involved a developer who has gone with him on mission trips.

Carney said being friendly with developers is one thing - allowing friendships to cloud judgment is another.

He said this week that Howard and Wright have apologized to him for using his name on a business without his permission. “They didn't do it maliciously,” said Carney, adding: “If I have to give up friendships for this job, it isn't worth it.”