New records reveal details of investigation into Durham City Council member
Emails and texts released by the city of Durham shed some new light on the allegations facing City Council member Monique Holsey-Hyman.
Among the emails is a March inquiry from an FBI agent asking for a copy of the allegations, “as they may constitute federal crimes.”
Holsey-Hyman was accused in March of extorting a developer and improperly involving city staff with campaign matters.
She has repeatedly declined requests for comment, but denied intentionally violating campaign rules.
The name of the developer was not known publicly until May 15, when Mayor Elaine O’Neal revealed the name around 9:30 p.m., after City Hall had largely emptied out, calling it an “open secret among certain community members.”
She said the developer at the center of the issue is Jarrod Edens, president of Durham-based Edens Investments, who has been involved in residential development in the Triangle for years.
The News & Observer assembled a timeline with what we know so far.
The weekend of March 10-12
Planning Director Sara Young told City Attorney Kim Rehberg that a property developer had reported an extortion attempt.
- Young called Rehberg over the weekend to report the matter.
- The developer said they had recently held one-on-one meetings with council members to build support for their project(s).
The developer said Holsey-Hyman told them “in order to obtain support for their project (i.e. a ‘yes’ vote on the application), they would need to make a contribution to that councilmember’s campaign,” Rehberg wrote the next day.
- “I do not know if the foregoing allegation is true,” she said. “Neither of us was in the subject meeting to witness the above-described exchange.”
Note: Records requests for documents with the developer’s name have not been identified the developer.
The developer also told Young they “believe multiple members of the City Council are engaged in group chat or text thread discussions during public hearing deliberations,” Rehberg wrote.
- “Again I do not know if this alleged conduct is occurring. I have not personally seen such group chats or text threads,” she continued.
- Rehberg said it may not be illegal, but such deliberations “certainly do not comport with the spirit of the North Carolina Open Meetings Law.”
March 13
Rehberg emailed a letter to the entire City Council detailing what she knew about the reports made to Young.
- “It should go without saying that no member of the City Council should ever demand or accept anything of value in connection with ... the official duties of the office,” Rehberg wrote.
- Anyone who has done so should “consult with their own personal lawyer,” she continued.
Rehberg also shared statutes and city policy addressing city staff working on campaigns while at work.
- Holsey-Hyman is accused of violating that policy. A staffer working on Holsey-Hyman’s campaign was disciplined for violating the policy.
March 14
Rehberg followed up in an email to the City Council:
- “The City Council should take the reported allegations very seriously and act with all due haste to address them. The City Council should be concerned about the threats to the integrity of its work and to public confidence posed by allegations of corruption,” Rehberg wrote.
- “It is unlikely that a developer would report conduct that has no factual basis or to maliciously cause harm, particularly a developer who regularly brings matters before the city,” she continued.
- Rehberg suggested the City Council conduct an investigation before it conducted public hearings again the following week.
- She noted the matter could not be discussed in closed session.
March 15
Mayor Elaine O’Neal spoke with UNC School of Government professors about how to proceed.
- “These are very serious allegations and will be treated as such,” O’Neal emailed the council and senior city staff.
Council member Jillian Johnson emailed the council 10 minutes earlier.
- “I am concerned that if we don’t take quick, decisive action with full transparency to the public that it will later appear that we were trying to hide something,” Johnson wrote.
March 17
Mayor Pro Tem Mark-Anthony Middleton texts Johnson, making plans for a phone call the next morning.
March 19
Middleton emailed his colleagues a “cease and desist.”
- Middleton said “several prominent members of the Durham community (who are prepared to make attestations if necessary)“ told him at least one other council member said the allegations facing Holsey-Hyman were part of “a conspiracy organized and directed by myself in order to undermine a fellow council member.”
- Middleton called it an “egregious attack” on his character, “a slanderous lie and a pathetic attempt to deflect” and “also just embarrassingly stupid.”
- He said his legal counsel advised him the comments were an abuse of power and ethics violation.
March 20
The mayor and city attorney met with City Council members in pairs or individually (to avoid violating N.C. Open Meetings Law) to decide how to move forward.
- “The consensus among a majority of City Councilmembers is that the allegations are incredibly disturbing, must be taken very seriously, and, if true, may constitute criminal activity and could lead to a felony conviction,” Rehberg wrote.
Holsey-Hyman met with City Manager Wanda Page at 2 p.m. and with O’Neal and Rehberg at 5:30 p.m., texts show.
March 21
Rehberg requested senior city staff in two offices provide more details on their employees’ involvement in Holsey-Hyman’s campaign.
- One works under a deputy city manager and was disciplined for violating the city’s Political Activities policy. Holsey-Hyman later said the individual sent a social media invitation to a campaign event during work hours.
- One works for the city clerk. They “described an interaction that occurred in the fall,” Rehberg wrote. Holsey-Hyman later said she had asked someone to research political action committees and other matters deemed campaign-related, which she didn’t know was against the rules.
March 22
3:41 p.m.
Holsey-Hyman emailed her colleagues and senior city staff.
- “I would like an opportunity to meet with and to provide my statement to the council members before action is taken. None of my colleagues have ever asked me about what happened in either of the alleged incidents. I am on my way back from a conference in GA.”
6:09 p.m.
Rehberg shared with the council a statement O’Neal asked her to prepare for the next day’s work session.
- “The Mayor encourages officials and staff in the City to use this statement to respond to inquiries from members of the public and/or media.” Rehberg wrote.
- “City officials and staff should be discreet and limit public comments ... to the greatest extent possible consistent with reasonable transparency,” she continued.
6:42 p.m.
Middleton asked what they should do if asked “Is it you?”
- “Unless every single one of us is willing to endure the scrutiny and speculation of saying ‘I can’t say’ then these talking points are challenging,” Middleton wrote.
10:36 p.m.
Johnson emailed a draft resolution of censure, which can be read here.
March 23
7:30 a.m.
O’Neal asked that her name be removed from the draft censure resolution.
9:41 a.m.
Johnson shared a revised resolution.
10:17 a.m.
Rehberg answered questions about the censure in a group email.
10:40 a.m.
Rehberg clarified to Middleton and others that they had discretion on what to say publicly.
- “My intention was not to provide a mandatory script,” Rehberg wrote.
- “I am not in a position to provide legal advice to individual members of the City Council regarding these issues,” she continued.
1 p.m.
City Council began its work session and O’Neal read the statement Rehberg had prepared.
1:59 p.m.
Johnson texts council member Leonardo Williams: “What the **** is even happening right now.”
2:30 p.m.
Council member DeDreana Freeman had a heated argument with Middleton after the meeting, which became physical.
- Williams said he stood between them and held Freeman back.
- Freeman declined to comment on the incident. She had accused Middleton of bullying Black women on the council.
March 24
9:24 a.m.
An FBI agent in Raleigh emailed O’Neal and Rehberg.
- “I am writing you both to request a copy of those allegations, if you would not mind forwarding them our way as well, as they may constitute federal crimes,” he wrote.
The FBI agent offered to meet in person.
- The mayor received three emails that afternoon accepting calendar invitations. The agent’s name is in the subject line, but the text of the messages has been redacted.
- The emails were from the FBI agent, a Department of Justice official who oversees elections in central North Carolina, and a conference room in the mayor’s office.
2:57 p.m.
Johnson followed up with tweaks to the censure resolution.
- “I hope that in spite of our recent challenges that we can maintain our collegiality,” she wrote.
March 27
Durham District Attorney Satana Deberry issued a statement.
“I have asked the North Carolina State Bureau of Investigation to open an inquiry into allegations made at last week’s meeting of the Durham City Council. As with any criminal investigation, the existence of an allegation or inquiry is not on its own confirmation of a violation of the law,” the statement said.
The SBI confirmed an investigation was underway.
March 28
The city clerk directed council members to send her screenshots of text messages related to a string of public records requests.
Johnson texts Middleton the final draft of a statement admonishing Freeman for criticizing Rehberg in WRAL.
- “At all times during the handling of this situation, Attorney Rehberg has acted with the highest integrity and with careful attention to her legal and ethical responsibilities,” the statement read.
It was endorsed by four council members — Middleton, Johnson, Williams and Javiera Caballero — according to WRAL.
- Middleton: “Did we run it by the mayor just to check that box?”
- Johnson: “Yes, Javiera did, it didn’t go well.”
- Middleton: “Damn. Really?”
- Johnson: “Yeah, she didn’t want anything to do with it.”
- Middleton: “Wow.” “Hold on!” “Speaking with JC.”
- Johnson: “Too late - Sent to Kreuger & Moore but will hold on others.”
- Middleton: “No worries.”
April 3
The City Council met for a regular session.
- The censure was not added to the agenda or voted on.
- It did not have the majority’s support. Middleton and Williams told The N&O they would no longer vote for it.
April 6
Young emailed a response to questions from The N&O:
“The Planning Department does not have documentation of the described complaint, and neither I nor any member of my staff have information related to this issue that is subject to disclosure as a public record.
“I will speak to investigators and share what little information I have on this matter at the appropriate time during the course of the criminal investigation.”
May 15
For weeks, city officials have declined to identify the person who accused Holsey-Hyman. The mayor reveals the developer’s name is revealed at a Durham City Council meeting.
The name came up after the council considered a vote to annex a development site owned by Jarrod Edens. Edens was requesting another annexation hearing for a proposed neighborhood tentatively named Carpenter Falls or Carpenter Preserve.
His annexation request was denied March 6 in a 3-3 vote. Holsey-Hyman voted against the proposal. He said he revised the plan following the vote.
“I want to focus on the project this evening. I’m going to talk about the project,” he said. “I’ve been coming here for how many years? Twenty, 25 years. Never requested that any members not vote or anything, never had that issue come up.”
Before anyone else spoke on the agenda item, O’Neal said she wanted to put some things on the record. She said Rehberg informed her “sometime in the last few weeks” that it was Edens at the center of the probe into Holsey-Hyman.
Rehberg advised that Holsey-Hyman could ask for an excused absence or decide to recuse herself. She also said Edens could raise an objection if he desired, though he did not.
After a second vote on annexing the development, Holsey-Hyman left the building and didn’t return.
Edens told The N&O he didn’t know his identity would be revealed that night.
“I don’t know what to say,” he said after the meeting. “Honestly, I learned some stuff tonight.”
He declined to discuss the extortion allegation and whether he had been contacted by law enforcement.
This story was originally published April 6, 2023 at 4:28 PM with the headline "New records reveal details of investigation into Durham City Council member."
