Former SC State Trustees Plead Guilty in Federal Kickback Charges Related to Jonathan Pinson’s Case

Three men have pleaded guilty to charges related to Jonathan Pinson’s federal kickback trial.

The men – Lancelot Wright, Robert Williams, and Phillip Mims – pleaded guilty on Wednesday, November 6th, in a federal court in Charleston, SC. Prosecutors allege that the three falsified invoices and used loans for purposes other than what they were intended for, part of which was to purchase land in Jonathan Pinson’s federal kickback case.

Investigators claim that the three men obtained hundreds of thousands of dollars in loans through several businesses, including the Strategies Development Group, a development project in Columbia called Village at River’s Edge, and a diaper plant in Marion County, Softee Supremes. They were accused of keeping some of a $1 million grant from the SC Department of Commerce that should have gone to creating jobs at the diaper plant. The money may have been set aside for federal kickbacks to an employee, constituting bank fraud and federal fraud charges.

If convicted, the three men could face 30 years in jail and 5 years on conspiracy charges.

The Story Behind Pinson’s Federal Kickback Charges

Pinson was charged in January 2013 with federal kickback charges, along with friend and alleged co-conspirator Eric Robinson. Both men have pleaded not guilty to the federal kickback charges. Pinson even recently filed with the court to have the identities of his informants revealed.

According to prosecutors, between 2009 and 2011, Pinson, along with “close personal friend” Eric Robinson, accepted items of value in exchange for using his official position to help those who bribed him. This is a violation of the Hobbs Act, which prohibits actual or attempted robbery or extortion affecting interstate or foreign commerce. The statute is frequently cited in cases involving public corruption, such as this case.

In mid-January, former Chief of Police Michael Bartley admitted to his role in the plot. He allegedly agreed to promote the purchase of the Sportsman’s Retreat, and in return would receive $30,000 and an All-Terrain Vehicle.

Bartley was one of eight SCSU staff members fired this time last year because of his connection to the scheme, which the university said it was investigating, but did not go into detail.

In March of this year, federal investigators looking into the federal kickback charges said they would indict Pinson on more charges in April, but no new indictments were issued.

Federal Criminal Charges and 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. If a kickback does not specifically violate the federal or state law, the kickback may be considered normal, legal and tax deductible. Tax deductibility 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, and face federal kickback charges, 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.