3 former S.C. Transportation employees charged with corruption

Three former S.C. Department of Transportation employees and a neighbor of one were charged as part of a six-year corruption and kickback scheme that bilked taxpayers out of more than $400,000, according to an investigation made public Thursday.

The State Grand Jury issued five indictments on June 22 that were kept secret until a court hearing in Lexington County for Charles Shirley, the accused ringleader of the longest-running of three schemes.

Shirley, who resigned in January to work for a private company, received approximately $360,000 from his secret interest in a company to which he funneled contracts for traffic signals, according to the indictments.

He supervised the installation, maintenance and repair of such signals in the Midlands for much of the time that investigators examined.

Shirley, 43, faces a combination of felony and misdemeanor charges that carry up to 46 years in prison.

The list of charges includes criminal conspiracy, official misconduct, accepting extra compensation and three counts of receiving anything of value to influence a public employee.

The Transportation Department leader, Christy Hall, said the agency, “has zero tolerance for wrongdoing of any kind.”

Shirley, who lives in the Barnwell County town of Blackville, had the help of neighbor Allen Ray in creating three shell companies through which the public funds were funnelled, according to prosecutors. Shirley had “substantial control” of Pine Ridge Specialty Services, On Time General Services and Asset Force Consultants, said assistant state Attorney General Creighton Waters.

Shirley’s bond was set at $150,000. He will wear an ankle monitor and be under house arrest except for work, church and medical care after his release from the Lexington County Detention Center.

He did not speak publicly at the bond hearing, but conferred quietly with his lawyer, Vicki Koutsogiannis.

At the request of Waters, Circuit Judge Knox McMahon told Shirley to avoid contact with transportation agency records and staff.

Those computerized records were essential in tracking down payments that Shirley authorized to enrich himself, Waters said.

Shirley also was ordered to turn over firearms after Waters said Shirley made unspecified comments about “not being taken,” even though he surrendered peacefully when arrested.

The scheme involing Shirley and Ray worked like this, according to the indictments:

▪ In mid-2009, Shirley and Ray formed Pine Ridge Specialty Services. Shirley hired the firm to work on state transportation projects. The company was in Ray’s name but Shirley provided seed money and had a major role in the company kept secret.

His former state job allowed Shirley to assure that the company received work. “Shirley was able to ensure that he could extract large sums from for his own benefit,” the indictment states.

Shirley and Ray conspired from August 2009 until about July 2015, the indictment said. Shirley resigned from the state agency in January.

Ray is charged with criminal conspiracy and offering anything of value to influence action of a public employee. If convicted, he faces up to 15 years in prison.

Shirley was the only one of the four charged who had a bond hearing. Hearings for the others are likely next week, Waters said.

Meanwhile, two other former state transportation officials face separate charges in other bribery schemes:

Curtis Singleton, a former head of a state shop that also oversaw the installation and maintenance of traffic lights in the Midlands, created a “pay-to-play” scheme, according to the indictments.

He “demanded and received cash bribes and kickbacks from contractors whose work he supervised and assigned,” the Attorney General’s office said in a statement.

Singleton received more than $10,000 in cash and a $10,000 discount on a truck purchase, the indictment alleges.

His charges include four counts of receiving anything of value to influence a public employee, one count each of official misconduct and acceptance of extra compensation. Singleton faces up to 55 years in prison if convicted.

In the third scheme, Joe Butler, a former inspector at the signal shop, was charged with stealing state equipment and keeping the money while also receiving other kickbacks. He got more than $28,000 for illegal sale of equipment in 2013 and 2014, the indictment states.

Butler is charged with four counts of receiving anything of value to influence a public employee, three counts of breach of trust with fraudulent intent and acceptance of extra compensation. He faces more counts than the others indicted.

If convicted, Butler could be imprisoned for up to 75 years.

This story was originally published July 28, 2016 at 2:00 PM with the headline "3 former S.C. Transportation employees charged with corruption."