RALEIGH -- A state attorney says Rep. Thomas Wright repeatedly engaged in unethical and criminal conduct by misusing more than $340,000 in loans and campaign contributions while in office.

But Wright's attorneys say they believe the hearing that could lead to his removal from office is racially motivated.

Criminal charges for fraud and obstruction of justice are the basis for the legislative ethics hearing that started Monday. Wright's attorneys were blunt and bold in their accusation of racial bias. They point to a 2007 ethics complaint against a white lawmaker that was dismissed without a hearing. With Wright facing a public hearing, they say he is being treated differently.

"I find it ironic that Rep. Wright represents New Hanover County, Wrightsville, which is the very place of the 1898 race riot that took place, which began the Jim Crow era and this is a Jim Crow proceeding if he gets treated differently," Wright attorney Doug Harris said.

Wright faces felony fraud and obstruction of justice charges in criminal court. Investigators believe he misused more than $350,000 in campaign donations, loans and charitable donations.

"Between the years 2000-2006, Representative Thomas Wright engaged in a pattern of improper, unethical and criminal conduct while a legislator in this General Assembly," said William Hart, a prosecutor from the N.C. Attorney General's office.

Wright maintains it was simply sloppy bookkeeping. Last week, a judge granted a delay in his criminal case and his attorneys consistently pushed for the same during Monday's ethics hearing.

"There has not been adequate time for myself, or Mr. Joyner, for Tom Wright to go over these matters to form an adequate defense, and as the chairman has noted, we in fact don't have a defense yet," Harris added.

Harris' motions were denied but the committee did agree to accept a written argument on the racial bias. In between the arguments, several witnesses did take the stand. Testimony will continue Tuesday morning.

At the end of the hearing, the committee can either take no further action or recommend to the full state House to remove Wright from office. A lawmaker has not been removed from office since 1880.

Wright's criminal trial is now scheduled for March 31. He has filed for re-election and faces two opponents in the Democratic primary.