By Josh Bergeron
josh.bergeron@salisburypost.com

SALISBURY — After what’s being called a clerical error, the Rowan County Republican Party will be forced to give up thousands of dollars donated to the party by a business registered to local attorney Bill Graham, according to the N.C. Board of Elections.

The contributions, made through PITA Raleigh LLC, total $3,500, according to the Rowan GOP’s finance reports. In nearly all instances, state law prohibits businesses such as a limited liability company from contributing to political parties. The latest contribution from PITA Raleigh was received on Nov. 2.

Following an inquiry by the Salisbury Post, a representative for the State Board of Elections confirmed the donation violated state law.

When asked about the contribution, Graham said the LLC should not have been listed. He said the donation came from personal funds rather than an account operated by a business.

“This looks like a clerical error,” Graham said. ” There is no PITA Raleigh LLC. That has been dissolved by the Secretary of State.”

PITA Raleigh was established in 2009 and registered to the address where Graham’s home sits, according to the N.C. Secretary of State’s office and tax records. Graham is listed as the registered agent of PITA Raleigh. It was administratively dissolved in 2015 after failing to file an annual report, according to the Secretary of State’s office.

Despite it being dissolved, PITA Raleigh was listed twice in 2016 as a donor to the Rowan County Republican Party. One donation went toward the local party’s Lincoln-Reagan Dinner fundraiser, said Rowan GOP Chairman Stephen Kidd. The second went toward a golf tournament organized by the party, Kidd said.

In general, dissolved LLCs can continue operations if they’re in the process of shutting down, said Secretary of State office spokesman George Jeter. If an LLC continues operating on a “regular, on-going basis” after being dissolved, it can be the subject of legal action, Jeter said.

“Given that the whole reason for voluntarily seeking out a LLC status is to gain those advantages, then companies should realize they could be giving up those advantages by letting their ‘good standing’ status lapse, unless they are shutting down,” he said in an emailed statement.

Graham said he was not sure how PITA Raleigh came to be listed as the contributor of $3,500.

When asked about the PITA Raleigh contribution, Kidd said the Rowan Republican Party thought Graham’s group was a political action committee instead of a business. If it was a political action committee, the contribution would have been allowed. The contribution also would have been allowed if Graham’s group wasn’t dissolved and the contribution was made to the county party’s building fund.

Kidd said Graham has pledged to replace the contribution. Graham confirmed Kidd’s statement.

“We don’t actually lose any money, but the state gets an extra $3,500,” Kidd said.

The forfeited money from the Rowan County Republican Party will be placed in North Carolina’s Civil Penalty and Forfeiture Fund. Under state law, money placed in the fund will be used to maintain public schools.

Contact reporter Josh Bergeron at 704-797-4246.