Bondsmen told to stop writing bail bonds for Greensboro company

Sept. 28--RALEIGH -- As state agents investigate obstruction of justice and illegal lobbying allegations against a Greensboro bail bonds company and its attorney, the North Carolina Department of Insurance issued a cease-and-desist order Thursday to all bondsmen associated with Cannon Surety.

In essence, bondsmen associated with the company were told they could no longer write bail bonds.

The cease-and-desist order became effective at 10 a.m. Thursday and affects an estimated 200 bondsmen across the state.

Cannon Surety and its attorney Mark Bibbs have been the focus of an investigation by the Department of Insurance for more than a year.

Bibbs is accused of lobbying on behalf of Cannon Surety without registering as a lobbyist, a misdemeanor, and falsifying documents as a means to cover up the allegations.

It's unclear if the cease-and-desist order is the direct result of the investigation. The Department of Insurance did not return requests for comment.

Bibbs, who would not discuss the allegations, said Thursday's order is the result of an ongoing "war" between competing bail bonds companies.

l l l

Bibbs' name might sound familiar.

He is associated with two high-profile cases in Rockingham County.

The Raleigh-based attorney represents Mickey Snow and the family of Todd Burroughs in civil actions filed in Rockingham County and the U.S. Middle District of North Carolina, respectively.

Snow is facing criminal charges in Rockingham County for his alleged involvement in a teen prostitution ring involving disabled girls sold for sex by their mother in exchange for money. Bibbs is defending Snow, who was named as a defendant in a civil suit filed by the girls.

Burroughs was shot and killed by Rockingham County deputies in May 2016 after he failed to comply with their commands in the driveway of his Stoneville house. Burroughs' family filed a lawsuit in federal court against the Rockingham County Sheriff's Office.

In late March, Bibbs announced he would represent both Snow and Burroughs.

It would be just days before agents would raid his office looking for evidence of obstruction of justice and illegal lobbying.

l l l

In 2016, Bibbs was accused of illegally lobbying in legislative and General Assembly committee meetings on behalf of Cannon Surety, asking that lawmakers vote against Senate Bill 508, which amended certain laws governing bail bonds.

Under state law, a lobbyist can attempt to influence legislative or executive action through direct communication with a legislator, their employees or their family.

To be a lobbyist, Bibbs would have had to register with the secretary of state and pay a $252 annual fee. (Information has been corrected to fix an error. See correction at the end of the story. 10:10 a.m./Sept. 29, 2017)

Those who hire lobbyists -- in this instance Cannon Surety and All American Bail Bonds in Greensboro -- must file regular reports that include what they paid them.

Bibbs registered as a lobbyist in 2015 but failed to register for 2016 until July.

Former state Rep. Robert Brawley -- who supported SB 508 -- served on the Cannon Surety board and reported to the secretary of state's office that Bibbs told him he was hired by Cannon Surety President Dallas McClain.

Brawley was one of four people on June 5, 2016, who contacted the secretary of state's office about Bibb's registration to lobby.

Court records show Brawley told Department of Insurance agents that Cannon Surety board members had not authorized Bibbs to serve as their lobbyist or authorized McClain to hire him.

McClain -- who didn't respond to repeated attempts for comment -- also called the secretary of state's office June 5 to ask what would happen if someone was caught lobbying without registering, according to court records.

McClain and Bibbs sent subsequent emails to explain that Bibbs had been lobbying on behalf of Cannon Surety and they thought that the 2015 registration carried into 2016.

Those conversations launched an investigation.

l l l

Bibbs, who wouldn't discuss the allegations against him, did speak on behalf of Cannon Surety on Thursday. He said he doesn't believe Thursday's order has to do with the ongoing investigation.

He said since 2016 a series of lawsuits have been filed between Cannon Surety and its competitors.

Bibbs said McClain was one of six individuals, including a woman named Lyne Thompson, who began the state's first surety company in 2013. Both Thompson and McClain were eventually bought out of that company and started Cannon Surety with Brawley.

Bibbs said in 2016 Brawley became friends with the owners of a competing surety company -- Agent Associates Insurance in Raleigh -- and together have made allegations and accusations against McClain, Thompson, Bibbs and Cannon Surety.

"This is about good, green, all-American money," Bibbs said. "It's about greed."

Bibbs said with Cannon Surety gone, Agent Associates Insurance loses its main competitor.

He said he doesn't know exactly what caused the department of insurance to issue the cease-and-desist order but he believes it's a way to put Cannon Surety out of business.

Bibbs said he plans to fight the order in court.

l l l

At the moment, Bibbs has another court battle to fight.

A series of warrants have been filed in Wake County Superior Court allowing investigators to search bank records, Bibbs' office and his car to find evidence connected to the allegations against Bibbs and Cannon Surety.

On Sept. 7, 2016, Special Agent A.H. Jones with the secretary of state's office filed a search warrant against Capital Bank to review Cannon Surety's bank records.

Jones' warrant would be the first in a series filed between 2016 and 2017. That search warrant revealed Cannon Surety had paid $5,490 to Bibbs for undisclosed reasons.

On Sept. 13, 2016, agents served a search warrant on Wells Fargo Bank to review All American Bail Bonds account.

That search warrant yielded 15 checks equaling $17,685 paid to Bibbs. Fourteen of the checks were marked for his work on the "Odom case."

Agents said in a subsequent search warrant that when they asked Bibbs about the case, he said he didn't remember it.

l l l

On Dec. 9, 2016, Bibbs admitted to department of insurance agents that both Cannon Surety and the North Carolina Bail Academy paid him to lobby on their behalf. He did so without registering, court records show.

Bibbs told agents McClain agreed in January 2015 to pay him $72,000 and he had the same contract with N.C. Bail Academy, which ended in July 2015.

On March 7, 2017, investigators obtained search warrants for one of Bibbs' bank accounts and the bank account of Mina Lynette Mustian, the general manager of the North Carolina Bail Academy. She was also known by another name: Lyne Thompson.

Court records state that Mustian told investigators "Lyne Thompson" was her married name.

She said she married 33 years ago but never changed her name legally. She could not provide a marriage certificate to agents and could not remember where she married her husband, the warrant states.

Court documents state Mustian told agents she paid Bibbs between $20,000 and $24,000 for lobbying, and his preferred method of payment was cash.

In subsequent conversations with state agents, Mustian said she misspoke. After speaking with Bibbs, she realized she had paid him for legal services.

When she eventually sent agents the receipts, they showed she did in fact, pay Bibbs for being a lobbyist, not a lawyer.

"It is believed the documents are not legitimate and were recently produced to prevent, obstruct, impede or hinder public and legal justice and to avoid detection and legal consequences," Jones, the agent for the secretary of state's office, wrote in an application for a search warrant filed April 3.

Mustian said she believes Brawley brought forward the allegations because Cannon Surety filed a lawsuit against Brawley.

Brawley did not return a call seeking comment.

l l l

The search warrants were sealed by judges throughout the past year and became public three weeks ago.

No charges have been filed.

Bibbs' attorney, Russell DeMent of Raleigh, said he could not comment but that Bibbs was fully cooperating with agents.

DeMent said he did not know if the department of insurance's order Thursday related to the investigation.

It costs $252 to register as a lobbyist in North Carolina. The amount was misstated in this story when first published at 10 p.m. Thursday.

Contact Danielle Battaglia at 336-373-4476 and follow @dbattagliaNR on Twitter.

___

(c)2017 the News & Record (Greensboro, N.C.)

Visit the News & Record (Greensboro, N.C.) at www.news-record.com

Distributed by Tribune Content Agency, LLC.