Jonathan Pinson and Eric Robinson Claim Not Guilty in Federal Kickback Case

On Tuesday, November 19th, former South Carolina State University board chair Jonathan Pinson and his co-defendant Eric Robinson entered pleas of not guilty for charges related to a federal kickback case.

The latest criminal charges involved kickbacks and bribes for the River’s Edge Housing Project. They were indicted with the new federal charges on November 7th.

Pinson’s attorney filed to have wiretap evidence suppressed on Friday, November 15th. The November 7th indictment, which was 69 pages long, reportedly involved over a dozen wiretaps gleaned over a 2-year investigation into Pinson’s illegal activities. The wiretap evidence may not have followed proper wiretap procedure, according to the defense filing. Defense attorneys also claim that the wiretaps contain false information about Pinson’s activities.

The new federal indictments include not only federal kickback charges, but charges of bribery, money laundering through shell corporations, racketeering, extortion, and the use of public money and bank loans for illegal purposes. Allegedly, Pinson gave someone referred to in the indictment as “Person A,” possibly someone who worked with the City of Columbia, a $5,000 check for help with the River’s Edge Project.

The Village at River’s Edge and Federal Kickback Charges

November 7th’s indictment added charges related to the building of the Village at River’s Edge, a development handed to Pinson and his corporation The Village at River’s Edge LLC by former Columbia mayor Steve Benjamin, who was a partner and developer in the project before he was elected mayor.

In 2006, Benjamin reportedly helped Pinson create the limited liability corporation to build affordable housing in Columbia. Benjamin’s father, Sam, was also an investor in the project. However, in August 2009, Benjamin sold his and his father’s interest in the company back to Pinson for $492,500. Two days later, Benjamin ran for mayor.

Then, in 2010, the Columbia Housing Authority received a $10 million grant, and awarded $5.6 million to Village at River’s Edge to build 60 townhomes on the property. The indictment alleges that the $5.6 million grant was misuses by Pinson and associates throughout 2011, with an accusation that Pinson paid a kickback to a Columbia employee for facilitating the River’s Edge project in 2009.

The day before the new indictment, Wednesday, November 6th, three of Pinson’s former associates pleaded guilty to bank fraud and conspiracy charges in a federal court in Charleston, SC.

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.