Henry McMaster’s hearing on state ethics charges set for October

Lt. Gov. Henry McMaster’s S.C. ethics hearing on allegations that his 2010 gubernatorial campaign accepted $72,700 in contributions above state legal limits will be held Oct. 21.

A preliminary hearing is scheduled for Sept. 16, said Herb Hayden, director of the state Ethics Commission.

McMaster, a former state attorney general who helped author an ethics reform report for Gov. Nikki Haley, was supposed to have a hearing March after the charges were revealed at the start of the year. But that hearing was delayed.

McMaster’s attorney has said a previous advisory opinion from the Ethics Commission should clear the lieutenant governor.

If the commission finds McMaster, a Columbia Republican and former U.S. attorney, violated campaign-finance laws, it could issue a public reprimand, order restitution or levy fines of up to $2,000 for each violation.

The allegations against McMaster stem from the period after he lost the 2010 GOP primary for governor, won by then state-Rep. Nikki Haley. After the loss, McMaster set up a separate general election campaign account and accepted contributions to retire his campaign debt – even though he was not on the November ballot.

Some donors to McMaster’s general-election account already had given him the state-mandated maximum contribution of $3,500 for his primary race. The State broke news of McMaster’s excess contributions last year.

At that time, then-Ethics Commission attorney Cathy Hazelwood told The State that McMaster could not exceed the $3,500 contribution limits for the one election in which he ran – the primary.

John Camp, who was McMaster’s campaign treasurer in 2010, told The State last year that he understood candidates could collect from donors to pay off debt – even those who had given the $3,500 maximum. But Camp said he did not ask the Ethics Commission for its interpretation of state law.

According to the Ethics Commission’s charges, nearly half of the $149,500 raised by McMaster’s campaign after the 2010 primary came from donors who exceeded state contribution limits.

The ethics complaint cites contributions from 51 donors, including payday lenders Cash America and Ace Cash Express; McCall Farms; and rail operator Norfolk Southern.

The complaint was filed by a Greenville financial adviser with ties to one of McMaster’s 2014 Republican primary rivals for lieutenant governor.

McMaster, elected in November, is the second consecutive S.C. attorney general to run into campaign finance problems during the 2010 election. Current Attorney General Alan Wilson, refunded $42,500 in excess 2010 contributions after reviewing his campaign filings last year. The Lexington Republican won re-election last fall.

This story was originally published July 22, 2015 at 1:30 PM with the headline "Henry McMaster’s hearing on state ethics charges set for October."