On Monday, before the indictment was public, Robin Hayes announced he wasn’t going to seek another term as state party chair, citing both a strong bench and health concerns. | AP Photo/Mike Spencer 2020 Elections North Carolina GOP in chaos ahead of big election cycle

North Carolina's Republican Party was rocked again on Tuesday as GOP chairman Robin Hayes and a prominent political donor face federal charges for allegedly attempting to bribe a state official — another blow to the party as it prepares for two House special elections, a slew of statewide battleground races and the Republican National Convention in the next two years.

The indictment unsealed on Tuesday alleged that Hayes, prominent donor Greg Lindberg and two of Lindberg’s associates directed and promised campaign contributions to Republican Insurance Commissioner Mike Causey, an elected official. All four of the men charged pleaded not guilty; Causey voluntarily reported concerns to federal law enforcement in January 2018 and was not charged.


Rep. Mark Walker (R-N.C.), who is not named in the indictment, has been identified by POLITICO as “Public Official A,” after receiving $150,000 from Lindberg at the same time Lindberg asked Walker to pressure Causey to replace his deputy, according to court documents.

The indictments have intensified the turbulence buffeting Republicans in a state set to play a central role in the next round of national political battles. Sen. Thom Tillis (R-N.C.) is considered a top target for Senate Democrats in 2020, while Republicans are aiming to pick off first-term Democratic Gov. Roy Cooper. North Carolina could be a presidential battleground again in 2020, when the RNC plans to renominate President Donald Trump in Charlotte. And a pair of House special elections are currently underway — including in North Carolina’s 9th District, where a new election was called after an investigation found evidence that a Republican operative perpetrated election fraud.

COUNTDOWN TO 2020 The race for 2020 starts now. Stay in the know. Follow our presidential election coverage. Email Sign Up By signing up you agree to receive email newsletters or alerts from POLITICO. You can unsubscribe at any time. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

It’s not yet clear what effect the indictments will have on North Carolina Republicans, but some in the GOP privately acknowledge that it could be problematic. “This is a bad perception issue for us,” said one North Carolina Republican operative, granted anonymity to discuss internal party dynamics. “This is not helpful, and it’s now getting national attention.”

With a big two years ahead of the GOP, “it stands within reason that the RNC and others will look to stabilize the party structure in the state,” said Paul Shumaker, a Republican consultant in the state who advises Tillis, adding that North Carolina is a “very important” state and “stability is very important.”

Democrats, meanwhile, leaped on the indictments, saying they showed state Republicans "foster a corrupt system that works for them at the expense of North Carolinians," said Aaron Simpson, a spokesperson for 9th District Democrat Dan McCready. The results of McCready's midterm race in 2018 were thrown out and a new election was ordered after an investigation into Republican candidate Mark Harris' campaign.

The indictments “create real chaos within the Republican Party, and even as they try to right the ship, it takes a long time to wash blood off your hands,” said Morgan Jackson, a Democratic consultant in the state. “Doesn’t come off easy.”

Walker has denied any wrongdoing. “We’re not even part of this investigation,” Walker said in a brief interview with POLITICO. “I’m not going to get into [that with] you with any kind of details. Two of those are constituents of mine, they reach out to me, one of them is the county chairman.”

Lindberg has given over $1.6 million to federal candidates and committees, according to a data from the Center for Responsive Politics. Much of the money has gone to Republicans, but he has also contributed some to Democrats.

In 2017, Lindberg was the single biggest donor to the North Carolina Republican Party, as well as supporting Lt. Gov. Dan Forest, who is expected to run for governor. But Lindberg has also donated to the North Carolina Democratic Party and statewide Democrats, including current Democratic Party Chair Wayne Goodwin when he was insurance commissioner.

The indictment alleged the contributions were offered in “exchange for specific official action favorable” to a company owned by Lindberg, ‘including the removal” of a state official “responsible for overseeing the regulation” of that company.

“These men crossed the line from fundraising to felonies when they devised a plan to use their connections to a political party to attempt to influence the operations and policies of the North Carolina Department of Insurance,” John Strong, the special agent in charge from the FBI’s Charlotte field office, said in a release announcing the indictment.

Federal law enforcement officials also allege that Hayes lied to FBI agents when asked about his involvement and knowledge of the campaign contributions.

“The Party has been cooperating with the investigation for several months, including staff members providing statements and responding to various document requests,” North Carolina Republican Party counsel Josh Howard said in a statement, which did not directly address Hayes’ indictment. “The Party, which has its day to day operations managed by professional staff under the direction of the NCGOP Central Committee, remains fully operational and focused on its mission at hand."

Hayes did not respond to a message left on his cell phone by the Associated Press. North Carolina GOP executive director Dallas Woodhouse pointed to the statement from Howard when reached by POLITICO.

On Monday, before the indictment was public, Hayes announced he wasn’t going to seek another term as state party chair, citing both a strong bench and health concerns.

There is no good time for a state party leader to be indicted, but Hayes’ time in court comes at an exceptionally consequential moment for the North Carolina Republican Party.

“People thought they were inept, not crooked,” Doug Raymond, a North Carolina GOP strategist, said of the state party. Raymond said that local activists were already fed up with party leadership before the indictment, citing a recent state Supreme Court election.

The effects of the indictment could also throw off plans for the Republican convention, which is supposed to be a coronation for President Donald Trump.

“The question is: What does the wiretap reveal?" another North Carolina Republican strategist told POLITICO. “If it is damning, North Carolina politics is in for a world of hurt as 2020 approaches and the convention is on the way.”

That strategist continued: “It takes having a really organized state party to be able to run a national convention. If the party continues to be in this disarray, which it is now thrown into, then you’re going to have consequences for the convention.”

Melanie Zanona and John Bresnahan contributed to this report.