Greensboro, NC – June 8, 2025 – Formal complaints have been filed by local resident George Hartzman with the Greensboro City Clerk, the State Ethics Commission and the Secretary of State’s Lobbying Compliance Division. The complaints allege serious violations of North Carolina’s lobbying laws, conflict-of-interest statutes, and ethics codes by Downtown Greensboro Inc. (DGI) President and City Councilmember Zack Matheny, Mayor Nancy Vaughan, Councilmember Nancy Hoffmann, City Attorney Chuck Watts and developer Roy Carroll.
Key Allegations;
Hartzman’s complaint, backed by financial records and public meeting footage, centers on undisclosed conflicts of interest, improper influence, and potential illegal lobbying activities.
Key claims include:
Conflicts of Interest in Bellemeade Property Deal
Matheny, who serves as both DGI President and a Greensboro City Councilmember, voted on February 18, 2025, to approve a $2.35 million contract for the demolition of the Bellemeade Street Parking Deck. On June 3, 2025, he voted to transfer the city-owned property to Roy Carroll’s company for $1.85 million, despite an appraisal valuing it at $2.42 million. This deal allegedly resulted in a $570,000 windfall for Carroll and a $504,000 loss for taxpayers, effectively transferring over half a million dollars in public value to a private developer.
Carroll and his wife each donated $5,000 to Matheny’s 2022 campaign.
Craig Carlock, a Carroll Companies executive, sits on DGI’s board, creating a financial and political tie.
DGI records show $4,313.53 in taxpayer-funded grants and expenses linked to Carroll, including a $2,500 façade grant and meals with Matheny.
Unregistered Lobbying by DGI
DGI’s January 30, 2025, bi-annual report details advocacy efforts with city officials on issues like the Bellemeade demolition and Carroll’s Marriott AC Hotel project. However, neither Matheny, DGI Vice President Rob Overman, nor DGI is registered as a lobbyist with the Secretary of State, potentially violating NCGS § 120C-101.
The complaint highlights that DGI’s IRS filings do not disclose lobbying activities, and searches of the Secretary of State’s database show no registrations for Matheny, DGI, or its vice president
DGI spent taxpayer funds on meals for city officials, including $62.49 for Vaughan, $55.53 for Hoffmann, and $64.17 for Watts, raising concerns about unregistered lobbying and gift ban violations under NCGS § 138A-32.
DGI's own reports describe "242 economic development and planning meetings" and serving as a "liaison" between developers and city departments, and meals with city officials and nonprofit leaders at upscale restaurants throughout Greensboro.
Under North Carolina law, public officials cannot accept gifts of any value from organizations that receive government funding or lobby the government.
Zack Matheny, who has served as both DGI President and a Greensboro City Councilman, previously resigned from council in 2015 to avoid conflicts of interest, only to return to public office while maintaining his leadership at DGI. The intertwined roles of city officials, DGI, and private developers have long raised concerns about transparency and ethics in Greensboro’s downtown redevelopment efforts.
"The repeated pattern of DGI funding meals for officials who later vote on Carroll's projects creates a strong appearance of quid pro quo corruption," the complaints state.
Improper Gifts and Potential Bribery
DGI’s financial records reveal taxpayer-funded perks, including meals, event tickets, and grants, provided to city officials and staff who later voted on or advised on Carroll-related projects.
Notable expenses include:
$43.08 for City Manager Taiwo Jaiyeoba.
$42.30 for Parks and Recreation’s Josh Sherrick.
$300 for a lunch with developers, including Carroll, at Undercurrent Restaurant.
An estimated $60,000 on event tickets over three years, potentially used to influence officials.
At Greensboro's City Council Meeting 6/3/2025, Hartzman said "Their ledger shows over $40,000 in spending on perks: Haunted House tickets, Oyster Roast tickets, Swarm, Tanger, Grasshoppers, and Wyndham events. Then there’s meals with city officials, nonprofit leaders and Matheny political donors at Green Valley Grill, B Christopher’s, Pura Vida, Natty Greene’s, Undercurrent, Lucky 32, Print Works, Sushi Republic, Postino, Inka Grill and more. All on the public’s dime, paid for with our tax dollars."
If Zack Matheny and DGI spent a total of $60,000 on event tickets over the last three years, with tickets averaging $65 each, they could have distributed approximately 923 tickets ($60,000 ÷ $65 = 923.08).
Matheny has been CEO of DGI since July, 2015.
These actions may violate NCGS § 14-234 (conflict of interest) and NCGS § 14-217 (bribery).
The complaint also alleges the city and DGI withheld financial records in response to public information requests, raising concerns about transparency and accountability.
Nonprofits must operate exclusively for exempt purposes (charitable, educational, etc.). They cannot allow their income or assets to unfairly benefit individuals or private interests, unless such benefits are incidental and necessary to the organization’s mission.
Taxpayer dollars are not meant to subsidize social perks for government insiders. Meals and tickets provided to City Council members or city employees without transparency or a legitimate, documented public interest, are a misuse of public funds and may violate both nonprofit law and government ethics standards.
City Attorney’s Conflict
Watts, who accepted a DGI-funded meal, advised Matheny on voting despite clear conflicts, raising concerns about obstruction of justice (NCGS § 14-221) and violations of NC State Bar ethics rules. Hartzman alleges Watts’ failure to recuse himself compromised impartiality.
Lack of Transparency
The Bellemeade property transfer was a no-bid deal, bypassing competitive processes and public oversight. DGI’s financial records, partially released by the city, lack detailed disclosures, and IRS Form 990s show no lobbying entries despite advocacy activities.
Hartzman demands:
A criminal investigation into violations of NCGS § 138A-32 (gift ban), § 163-278.12 (lobbying disclosure), § 14-234 (conflict of interest), and § 14-217 (bribery).
Immediate recusal of officials who accepted DGI-funded benefits from votes or discussions involving DGI or Carroll.
Full disclosure of DGI’s spending on officials and updated economic interest disclosures.
The complaint further notes that improper use of nonprofit funds and failure to report gifts could trigger IRS penalties and jeopardize DGI’s nonprofit status
An independent investigation by the City Clerk under Greensboro’s Code of Ethics, separate from the State Bureau of Investigation (SBI) referral made by the Greensboro Police Department (GPD).
City’s Response and Controversy
Mayor Vaughan confirmed the complaint was referred to the SBI due to the involvement of elected officials, per GPD protocol.
However, Hartzman alleges Vaughan’s disclosure of the complaint’s details violated confidentiality, potentially exposing him to retaliation and undermining the process. He claims this breach may constitute obstruction of justice under NCGS § 14-221.1 and has demanded a clear timeline for the city’s internal ethics investigation.
Hartzman further argues that the city’s failure to act promptly on its own ethics code risks perceptions of complicity or a cover-up, especially given Watts’ compromised role as legal advisor.
Broader Implications
The allegations highlight a pattern of alleged misconduct involving taxpayer funds, political donations, and favorable votes for private developers. If proven, the violations could lead to misdemeanor or felony charges, including bribery or misuse of public funds (NCGS § 14-254). The case also raises questions about the integrity of Greensboro’s governance, with Hartzman calling for transparency and accountability to restore public trust.
The State Ethics Commission, Secretary of State’s Lobbying Compliance Division and the the SBI are expected to review the potential criminal aspects of the complaints. Greensboro's City Council faces pressure to hire independent counsel and address the allegations swiftly to avoid further legal and public backlash.
Contacted for comment, city officials had not responded by press time.
