Athletics department thief used USC credit cards for secret internet shopping spree

David Hutson had it good.

An employee of the University of South Carolina’s athletics department, he was making $69,125 a year. As part of that job, he had an official university credit card to be used only for USC business.

But unknown to the athletics department, Hutson was using that Visa Bank of America credit card to go on a nonstop internet shopping spree, according to state court and USC records obtained by Freedom of Information Act requests.

From 2013 to 2016, Hutson used USC’s credit cards to buy more than 1,100 unauthorized items for his personal use that cost more than $132,000, according to university records. That is about $3,666 a month in unlawful purchases.

Hutson’s university-financed gifts included tens of thousands of dollars in yard machines, high-tech cameras, smartphones, sniperscopes, sound systems, computers and other electronic equipment.

They also included some $38,000 of gift cards for Starbucks, Outback Steak House, Cabelas, Bonefish Grill, Bass Pro Shops, Lowes, American Eagle, Papa John’s, Gap, Whole Foods, LongHorn Steakhouse and Apple iTunes.

Hutson had the items “shipped ... to his residences,” according to criminal warrants.

The items Hutson bought came from two internet retailers – Amazon and Newegg, according to university documents.

The most expensive item Hutson ordered was a $2,995 Pulsar Apex SX38A Thermal rifle scope, according to USC records. Amazon promotes the scope as “an excellent add-on to nearly any shooter’s firearm,” boasting it can operate “in essentially any climate and environment.” Thermal scopes register body heat and are used by hunters and military snipers.

Other pricey items that Hutson ordered included: a $2,399 Razer Blade gaming laptop, a $2,099 Husqvarna yard tractor, a $1,499 LG 55-inch 3-D television, a $1,229 wood chipper and leaf shredder, and a $1,349 10-foot-by-20-foot Storboss Storage shed.

Among the cheapest items Hutson ordered were Trojan condoms for $21.78, animal finger puppets for $2.69 and dog dental chews for $25.94.

Routine audit found ‘suspicious activity’

USC police records, obtained by The State newspaper as part of a Freedom of Information request, give this account of how Hutson was caught:

In the summer of 2016, a routine audit turned up “suspicious activity” on Hutson’s credit card. When confronted by a manager in late August, Hutson went to see associate athletics director Jeff Tallant, chief financial officer of the athletics department.

Hutson told Tallant he “was going to go to prison and that he had been stealing money from USC athletics,” adding he was expecting a new child and needed extra money.

“Tallant asked how much he had stolen and how much did he need. Hutson replied a ‘couple thousand dollars’ and that he maybe stole that much,” USC police records say.

After Hutson left Tallant, he sent a text of his resignation to the athletics department. Within a few days, a check of Hutson’s credit card turned up some $70,000 in questionable purchases.

Investigators then discovered Hutson had talked a co-worker into letting him use her university credit card “when he reached his limit for the month on his card,” USC police records say. Unknown to her – she thought he was buying things for the university – Hutson put more than $40,000 of his personal purchases on his co-worker’s credit card, USC police records say.

“Hutson produced false Amazon receipts ... to trick the entire process,” police records say.

On Dec. 13, 2016, Hutson and his attorney, Jim Leventis, went to the Alvin S. Glenn Detention Center, where Hutson was arrested and charged with breach of trust with fraudulent intent involving more than $10,000, embezzlement involving more than $10,000 and financial transaction fraud.

‘He’s moving on’

After that, the case moved slowly.

Hutson’s attorney, Leventis, died unexpectedly in April 2017. Local lawyers volunteered to take over Leventis’ cases, and attorney Johnny Gasser ended up with Hutson’s case.

Gasser worked out a plea deal that let Hutson avoid prison. The most serious embezzlement charge was dropped, provided Hutson plead guilty to misdemeanor financial transaction fraud and breach of trust involving less than $2,000.

Terry Parham, the USC lawyer who also represents the USC board of trustees, agreed to the deal, according to USC records.

A big part of the plea deal ensured USC would get its money back – $132,524.

“Hutson’s father-in-law was paying the restitution so that the stigma of Hutson’s actions would no longer affect his daughter,” USC police records said.

The father-in-law was not identified, and USC did not issue a news release in the case.

Hutson declined to speak to a reporter about what happened.

“He’s put this behind him, he’s moving on,” said his attorney, Gasser.

“David is very sorry for his actions while he was employed with the USC athletic department,” Gasser said in a statement. “He cooperated fully with USC’s internal investigation and admitted his guilt in court. He has no prior criminal record. This behavior was totally at odds with his overall reputation and work history. He made full restitution to the athletic department – which was paid on the day of his plea.”

Gasser called the matter a tragedy.

“He was employed there 10 years. He was a well-liked employee. People were shocked when they found out. But, because of the amount, they had to do something.”

Asked about the case, USC spokesman Jeff Stensland said that USC has strict standards regarding credit card use, and “Hutson chose to willfully violate those university policies and went to great lengths to conceal his activities, including the use of phony receipts. Once purchasing anomalies were noticed, an investigation was quickly launched and his scheme was uncovered. The university deferred to the solicitor’s office regarding the handling of the case and is pleased the solicitor required and obtained full restitution of the university’s losses from Mr. Hutson.

“USC takes very seriously our obligation to uphold the public trust, and we expect our employees to adhere to high standards of ethical conduct.”

This story was originally published January 23, 2018 at 3:46 PM with the headline "Athletics department thief used USC credit cards for secret internet shopping spree."