S.C. ethics fines reach $2.5M
Debtors rack up 6 figures in campaign penalties
By Tony Bartelme , Ron Menchaca
Candidates, elected officials and lobbyists owe the State Ethics Commission $2.5 million in fines and late penalties, mainly for failing to properly file information about their campaigns and economic interests.
Some debtors owe hundreds of thousands of dollars after getting caught in a spiral of late fees.
Those who fail to pay fines on time can face a penalty of $100 per day, and people such as Richard Johnson of Eastover can tell you how quickly the meter runs.
Johnson has been unemployed since a work injury a decade ago but managed to win a seat on the Eastover City Council in 2000. He lost his seat in 2006 but owes the Ethics Commission more than $430,000 for failing to file proper campaign documents. "How can I pay a fine like that?" he said.
Debtor's list
• The debtor's list on the South Carolina State Ethics Commission web site
• The debtor's list in a serachable format on Charleston.net (Excel file)
Johnson isn't the only six-figure debtor. Lucius Rice III, a former Jonesville Town Council member, owes more than $212,000 — and counting.
Rice first ran afoul of the commission when he failed to file a campaign disclosure form for the 2004 election and was fined $100. In 2006, the state hit him with a second fine for failing to file a statement describing his economic interests.
Because Rice has yet to address the original violations, his late penalties grow by $200 per day. The state has been garnishing Rice's employment wages for more than two years to the tune of about $10,000.
Rice said that after his job moved him to Charlotte, he never heard anything more from the state until it began to garnish his wages for what he thought was child support. "It's ridiculous," Rice said when The Post and Courier told him of his massive ethics commission fine. "I served my community on council, and this is what I get? It's sad that they are doing this to someone out there trying to make a living."
Rice finds it odd that the state couldn't locate him to notify him of the fines but seemed to have no trouble finding his paycheck to garnish his wages.
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Herbert R. Hayden Jr., executive director of the commission, seemed mystified about the complaints as he thumbed through Rice's 2-inch-thick file at the agency. He ticked off numerous dates on which the agency mailed letters to a post office box that Rice listed on his original campaign filings.
The agency also has records of e-mails Rice sent last year inquiring about the money he owed, Hayden said.
Rice could immediately "stop the bleeding" by filing the delinquent forms, Hayden said. He then could appeal his case to the agency's board, and it likely would reduce the amount he owes. "This guy has paid several thousand dollars, and it's still going up."
Others in the $200,000 debtors club include James Bigger, a former member of York County Council.
Hayden said there's no excuse for failing to file the information. It's easy to do, particularly now that forms can be filled out online. "It's no more difficult than filling out your checkbook register."
At the same time, he said the fine totals in Rice's case and others have gotten out of hand. "So many of those figures are totally unrealistic as far as ever collecting that money."
Hayden said there was an effort to bring common sense back to the process a few years ago when lawmakers passed legislation capping fines and late penalties at $5,000, but Gov. Mark Sanford vetoed the bill.
He said the $2 million-plus in fines owed now to the commission is probably a record. He added that since some of the fines never will be collected, people shouldn't get the idea that "there's 2 million dollars out there that we could use if people paid."
Still, for those who don't pay, the ethics commission can file judgments in the county where offenders live, file liens against their properties and have the Department of Revenue garnish their wages.
To avoid this, Hayden said, debtors need only contact the agency to appeal the fines.
William Dudley Gregorie, for instance, racked up $11,500 in penalties by last November in his Charleston mayoral race. He said he appealed to the commission, which reduced the fines and penalties to about $400. "They were very fair with me."
Some of the top debtors have moved out of state or are difficult to locate. Louin Bert Poston, for instance, owes $140,596 for failing to file campaign disclosure forms in 2003 for a North Charleston City Council race. A national database search turned up addresses in Florence and North Carolina with nonworking telephone numbers, but in 2005, he told The Post and Courier he didn't owe anything.
"It's been embarrassing, and it messed up my credit. It made me look like some thug who refused to do the right thing," he told the newspaper then.
Hollywood Town Council member Kenneth Smalls said he doesn't know why the state lists him as owing more than $40,000. He said that as far as he knows, he's filed all the required forms. "They've been losing their own paperwork," he said.
Johnson, the top debtor from Eastover, said his $430,000 fine is ridiculous considering that the extent of his campaign spending was paying $50 to get on the ballot when he first ran in 2000.
"I didn't have no campaign fund. This is a small town," he said of Eastover, which has a population of 830 and a municipal budget of about $600,000.
He remains unemployed because of his disability, and he lost his seat on council two years ago. "I'm not a deadbeat. I'd pay a fine if it was warranted."
Reach Tony Bartelme at 937-5554 or tbartelme@postandcourier.com. Reach Ron Menchaca at 937-5724 or rmenchaca@postandcourier.com.
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postman01 (anonymous) says...
No wonder a lot of quality people don't want to run for office.
January 20, 2009 at 1:37 a.m. ( permalink | suggest removal )
sig (anonymous) says...
Why aren't they going out and trying to find all the people that commit fraud within DSS and DHHS versus wasting there time on this this.
Only the rich can afford to run for an elected office or someone who has a rich backer and will end up owing them favors if elected.
January 20, 2009 at 7:20 a.m. ( permalink | suggest removal )
carolinadude (anonymous) says...
"Hayden said there was an effort to bring common sense back to the process a few years ago when lawmakers passed legislation capping fines and late penalties at $5,000, but Gov. Mark Sanford vetoed the bill."
It seems that the General Assembly has overridden the Governor's vetos almost at will. I really wonder why the veto was sustained in this case unless it's "just about revenue". The size of these fines is ludicrous, and the cap should be implemented with an exception being fraudulent intent on the part of the candidate which should be determined by a judge and jury. This commission is ruining peoples lives and credit rating not to mention being an embarassment for SC. I'd really like to hear the governor's rationale for the veto.
January 20, 2009 at 7:55 a.m. ( permalink | suggest removal )
theronce (anonymous) says...
This is a little ridiculous. I see it both ways. It can't be that hard to file a form. Also, let's be real from the government; micromanaging everything creates its own problems. Then again, you can't rely on using good sense in government, because often you come across someone who has little to none. "Rules are rules" is the defense of the governing side. "You gotta be kidding me" is the reaction of the governed side. Fill out the forms and turn them in. If all is kosher, then drop the fines. Next time, be proactive and avoid this stuff.
January 20, 2009 at 8:04 a.m. ( permalink | suggest removal )
JustJennings (anonymous) says...
Why are these guys still in office? Are they still receving public salaries? Gouvernment officials are never held accountable.
January 20, 2009 at 9:21 a.m. ( permalink | suggest removal )
blunt (anonymous) says...
This doesn't surprise me! I have told some of you before that a group of us reported to Ethics that Dan Davis was either late or just did not make his required reports, and nothing was done. In fact, under FOIA, I received copies of his one or two reports, one where he had hand written note stating that he had no excuse for his report being late, but enclosed was a $200 check for his late penalty. The problem was, his report was late enough that his penalty was between $7,000 and $8,000. By the way, there was no evidence that he even paid his filing fees to run for Berkeley County Supervisor. For those not too concerned about this, you need to know that "SC Law" requires these reports. My concern is, if it's the LAW, enforce it or take the law off the books! Also, we can save millions by abolishing the SC Election Commission and the SC Ethics Commission! The violators need to pay up or go to jail! If they are still in office, the Governor should remove them.
January 20, 2009 at 11:25 a.m. ( permalink | suggest removal )
martin (anonymous) says...
Obviously, like the egregious, widespread violations of the dual office holding law, THESE laws won't have teeth until they have criminal penalties which can lead to the official being put out of their office, permanently kept out of any SC public office and into jail, for at least overnight. I want to see that perp pic!!!. blunt is right, it's the law, enforce it. Failure to do so, encourages the lawbreaker to break more laws.
January 20, 2009 at 12:16 p.m. ( permalink | suggest removal )
oldglory (anonymous) says...
If these elected official are unable to respect the state constitution and laws, the people of the state, why in the world did they run for office? What was their goal? To be in a position to practice highway robbery as long as they could fool the people? Shame on each and everyone of you who owe us and the state.
Perhaps they if they knew that they would lose their office if they abused it, they would pay more attention. And yet, it appears that no one wants an accounting of where and how all funds are spent and what is owed.
January 20, 2009 at 1:50 p.m. ( permalink | suggest removal )
bigwhip (anonymous) says...
The Ethics Commission is a toothless inane embodiment of tax payer waste. It is owned and operated by the General Assembly.
January 20, 2009 at 2:04 p.m. ( permalink | suggest removal )
wjhamilton3 (anonymous) says...
Some of these people are working class council members from small towns. They have no staff and noone to advise them. I've helped people with filings like this and unless you have good software (which is available for Federal Election Campaigns) it can be overwhelming to attempt to catch up.
January 20, 2009 at 2:48 p.m. ( permalink | suggest removal )
JustJennings (anonymous) says...
It should be mandatory that public officials pay fines before receiving another taxpayer-funded cheque.
January 20, 2009 at 7:46 p.m. ( permalink | suggest removal )
blunt (anonymous) says...
wjhamilton, please, working class council members, no staff, no time, no ability, no nothing, including ignorance of the law, is an acceptable excuse for the violation of the law! We, all citizens, need to bombard our elected legislators and law enforcement agencies with e-mails, telephone calls, and letters and demand that they enforce the law or modify the law so that it is clear to all, without the need for attorneys, that serious fines and/or imprisonment will be carried out against those who violate the law. A couple of friends and I have requested, in writing and telephone calls, asistance from the Election Commission, Ethics Commission, SLED, FBI, SC Attorney General, and a couple of Berkeley County legislators with NO success!! If they is an attorney out there who is willing to assist with a class action suit, pro bono at least initially, please let me know!!
January 20, 2009 at 9 p.m. ( permalink | suggest removal )
JustJennings (anonymous) says...
Blunt, I have been there, too - contacting local, state, and federal officials, but nothing gets done. We need some accountabilty laws in this country. It is very rare that any gouvernment official is ever held accountable.
January 21, 2009 at 11:06 a.m. ( permalink | suggest removal )
JustJennings (anonymous) says...
People get their driving privileges suspended for not paying a traffic ticket. Gouvernment officials who don't pay their fines deserve at least as much!
January 21, 2009 at 12:26 p.m. ( permalink | suggest removal )
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