Judge Won’t Toss Wiretap Evidence in Jonathan Pinson’s Federal Kickback Case

A federal judge has denied a motion to throw out wiretap evidence submitted in the upcoming trial of Jonathan Pinson, accused of breaking federal kickback laws while working as the board chair for South Carolina State University.

US District Judge David Norton also refused to dismiss a federal racketeering charge on Wednesday, December 18th.

Pinson’s attorneys claimed that the wiretap evidence was wrongfully collected during an FBI investigation into the federal kickback case. However, Judge Norton said on Wednesday that the wiretaps were gathered legally and conducted in an “objectively reasonable fashion.”

Pinson was indicted on 51 counts of federal crimes in November, including racketeering, mail fraud, wire fraud, extortion under color of law, bribery, money laundering, and the misuse of state and federal grant funds. Pinson’s business associate, Robinson, faces 11 federal charges. Both men have pleaded not guilty, and have requested that they be tried separately.

Defense attorney Jim Griffin argued that the wiretaps should be dismissed as evidence because the FBI was originally investigating former Columbia mayor Steve Benjamin and his interest in a low-income housing development, the Village at River’s Edge. Pinson became involved in the investigation because Benjamin sold his shares of the project to Pinson just two days before his campaign for mayor began in 2009.

Several of Benjamin’s investors in the project have been charged with federal crimes related to the misuse of a $1.6 million federal loan granted to the development. However, Benjamin himself has not been named one of the defendants in Pinson’s or any other federal case.

Griffin said that the FBI was “overly intrusive” into a Columbia-area businessman who was simply doing business. He said that Pinson’s phone conversations were tapped into longer than allowed by federal law – in one case, agents listened to over 2 minutes of a conversation between Pinson and a South Carolina State attorney about a sexual harassment case without a warrant.

“It is like seizing a computer without a search warrant,” Griffin said.

However, US Attorney Janet Taylor argued that there is no time limit for the extent of wiretapping. She said that, in the event there was suspicion of illegal activity, wiretaps could be used legally as they were in Pinson’s case.

Pinson was originally arrested in January of this year on federal kickback charges involving a land purchase for SCSU, in which he allegedly received gifts such as a luxury SUV in exchange for ensuring the land sale to the university. However, after deeper investigation into the federal kickback case, both Pinson and his business associate Robinson were indicted on further federal charges.

Judge Norton has tentatively scheduled the federal kickback case to go to trial on March 19th in Columbia.

Federal Kickback Defense in South Carolina

Kickbacks refer to a form of negotiated bribery in which one returns part of the purchase price of an item to a buyer or buyer’s representative with the intent of inducing a purchase or improperly influencing purchases in the future.

Under federal law, kickbacks involving government officials or public funds provided by the government are illegal. Not all kickbacks are considered illegal, however. If a kickback does not specifically violate the federal or state law, the kickback may be considered normal, legal and tax deductible. Tax deductability is prohibited by an official, employee of the federal government or an official or employee of a foreign government.

If you or your company has been accused of kickbacks, or violation of federal kickback law, a South Carolina federal criminal defense attorney at the Strom Law Firm, LLC can help. With long standing experience with both state and federal cases, we know what it takes to aggressively defend you. Call a South Carolina Criminal Defense Attorney at the Strom Law Firm today for a free consultation. 803.252.4800.