‘Thin ice’: Horry County Chairman Johnny Gardner may have violated state ethics law
The public has a right to know the economic positions of their elected leaders, but Horry County Chairman Johnny Gardner did not supply the information as required by state law.
Gardner violated state law by not filing quarterly campaign updates despite having outstanding contributions and loans, nor did he file a statement of economic interest for 2019. The penalty for which can be fines or a misdemeanor charge.
The first of several reports should have been submitted by March 30, 2019, to the ethics commission. After The Sun News requested an interview with Gardner on Tuesday concerning the violations, he filed the reports.
“That was a low priority last year because we had a lot going on last year,” Gardner said. “We made a lot of changes and there are only so many hours in a day.”
Gardner said he ultimately takes responsibility for not uploading the reports on time, adding it was an oversight, not an attempt to hide anything.
The State of South Carolina requires candidates and elected officials to disclose certain financial information about any potential conflict of interests. Candidates submit the forms online and it’s up to the ethics commission to review each filing with the goal of increasing transparency and faith in government.
Campaign and ethics reform came as a result of the “Operation Lost Trust” investigation in the 1990s that exposed economic corruption in state politics. The Ethics Commission was created to ensure elected officials and lobbyist followed the law and informed the public of their economic activity.
“One of the things we emphasized in the ethics act was disclosures. We wanted the public to know where a candidate was getting their money,” said John Crangle, who helped author the ethics laws.
Reports for any South Carolina elected official can be found on the state ethics website. Candidates, elected officials and high-level government staff members are required to file.
Before Tuesday, Gardner’s last statement of economic interests was filed in March 2018. Statements of economic interests include information on how elected officials/candidates receive money and anything of great value they might own. He is required to file one every March by the end of the month.
Since 2018, Gardner’s law firm has changed and he has severed ties with his former business associate Luke Barefoot, who was at the center of last years South Carolina Law Enforcement Division investigation into extortion charges against the chairman. The Warehouse restaurant in Conway closed, and Captain Bucks Port is seeking new operators.
His last campaign disclosure submitted on time, which is different from the statement of economic interests, was filed on January 29, 2019. Campaign disclosures track how much money a candidate has on hand, how it is spent and any loans they might have. He is required to file one every quarter of every year even while not actively seeking office.
These campaign reports often change little in non-election years. Notably, according to the final filing, Gardner still owes $79,000 in loans made from his former business, the Johnny Gardner Law Firm, from the 2018 election.
State law says loans generally cannot exceed a $1,000 limit on campaign donations unless they are provided by a bank or company that regularly makes loans. Crangle said personal or family loans to your own campaign are allowed, but rules are different when it’s from a business like a law firm that does not regularly make loans.
Gardner said when he running he was told the loan was legal. He said it is a top priority to repay the loan. Crangle said state law stipulates that only $10,000 can be repaid from a personal loan.
Violating state ethics law has various fines associated with them that can potentially result in a magistrate’s court levying a $5,000 fine or even a year of jail time after three offenses. Officials must be given notice they are late before the fee is levied.
Gardner was not included on this year’s debtors list despite not having filed his reports. At the moment, the ethics office does not appear to be investigating Gardner. And he said he did not remember if he was ever given official notice that he was late on filings.
The Director of the State Ethics Commission Meghan Walker said she cannot comment specifically on a case or if Gardner had been notified by the commission that he was late. The Sun News has a pending Freedom of Information Act requesting any notices sent to the chairman.
Crangle said the law exists to ensure the public can identify any potential conflicts of interests their elected leaders may have, and it is the responsibility of the ethics commission to uphold the rules.
At any point, Gardner could have filed his reports and paid any fees he might have owed. He said moving forward he will do a better job of making sure his ethics laws are filed and might look to bring on a new assistant to help balance the workload as he plans to seek a second term as chair.
Any citizen to file a complaint to the state ethics commission if they recognize a violation or a circuit solicitor could launch an investigation.
“It sounds like he is on thin ice,” Crangle said.
This story was originally published January 28, 2020 at 4:08 PM with the headline "‘Thin ice’: Horry County Chairman Johnny Gardner may have violated state ethics law."
