Jump to content

Operation Lost Trust: Difference between revisions

Add links
From Wikipedia, the free encyclopedia
Browse history interactively
← Previous edit
Content deleted Content added
VisualWikitext
Adding short description: "FBI investigation into the South Carolina General Assembly" (Shortdesc helper)
No edit summary
 
(48 intermediate revisions by 19 users not shown)
Line 1: Line 1:
{{Short description|FBI investigation into the South Carolina General Assembly}}
{{Short description|FBI investigation into the South Carolina General Assembly}}
[[File:South Carolina State House.JPG|thumb|The South Carolina State House]]
[[File:South Carolina State House.JPG|thumb|The South Carolina State House.]]
'''Operation Lost Trust''' was the name of an [[Federal Bureau of Investigation|FBI]] investigation into the [[South Carolina General Assembly]] from 1989 to 1999. By the end of the investigation, seventeen members of the [[South Carolina General Assembly]] were arrested for bribery, extortion, or drug use. Operation Lost Trust is often considered the greatest political scandal in the history of the state of [[South Carolina]]. It directly influenced the passing of South Carolina's Ethics Reform Act of 1991 and led to the restructuring of the state government in 1993. In its wake the once dominant [[South Carolina Democratic Party]] was weakened as a political party and the [[Republican Party (United States)|Republican Party]] emerged as a viable political entity in the state.
'''Operation Lost Trust''' was the name of an [[Federal Bureau of Investigation|FBI]] investigation into the [[South Carolina General Assembly]] from 1989 to 1999. By the end of the investigation, seventeen members of the [[South Carolina General Assembly]] were arrested for bribery, extortion, or drug use. Operation Lost Trust is often considered the greatest political scandal in the history of the state of [[South Carolina]]. It directly influenced the passing of South Carolina's Ethics Reform Act of 1991, and led to the restructuring of the state government in 1993. In its wake, the once-dominant [[South Carolina Democratic Party]] was weakened as a political party, and the [[Republican Party (United States)|Republican Party]] emerged as a viable political entity in the state.


== Investigation ==
== Investigation ==
In 1989, the [[Federal Bureau of Investigation]] began investigating the [[South Carolina General Assembly]] after the narcotics arrest of Ron Cobb, a lobbyist and former member of the [[South Carolina House of Representatives]]. The FBI supplied Cobb with a boat located in [[Hilton Head Island, South Carolina]] and an office in [[Atlanta]] for the purposes of misleading state lawmakers into believing that he represented the Alpha Group, a fake organization seeking support for a bill legalizing dog and horse-track betting. Cobb was instructed to bribe lawmakers with campaign contributions in return for their support for the bill.<ref>{{Cite web|url=http://www.statehousereport.com/2016/12/16/history-operation-lost-trust-2/|title=Statehouse Report – HISTORY: Operation Lost Trust|language=en-US|access-date=2019-05-31}}</ref>
In 1989, the [[Federal Bureau of Investigation]] began investigating the [[South Carolina General Assembly]] after the narcotics arrest of Ron L. Cobb, a lobbyist and former Democratic<ref>{{Cite web |title=Former Representative Ron L. Cobb |url=https://www.scstatehouse.gov/member.new.php?code=0368181774&session=0 |url-status=live |archive-url=https://archive.today/20231029090117/https://www.scstatehouse.gov/member.new.php?code=0368181774&session=0 |archive-date=29 October 2023 |access-date=29 October 2023 |website=South Carolina Legislature Online}}</ref> member of the [[South Carolina House of Representatives]]. The FBI supplied Cobb with a boat located in [[Hilton Head Island, South Carolina]] and an office in [[Atlanta]] for the purposes of misleading state lawmakers into believing that he represented the Alpha Group, a fake organization seeking support for a bill legalizing dog and horse-track betting. Cobb was instructed to bribe lawmakers with campaign contributions in return for their support for the bill.<ref>{{Cite web|url=http://www.statehousereport.com/2016/12/16/history-operation-lost-trust-2/|title=Statehouse Report – HISTORY: Operation Lost Trust|language=en-US|access-date=2019-05-31|archive-date=2019-05-31|archive-url=https://web.archive.org/web/20190531171508/http://www.statehousereport.com/2016/12/16/history-operation-lost-trust-2/|url-status=live}}</ref>


In July 1990, a grand jury subpoenaed the campaign finance records of all 170 members of the General Assembly revealing the existence of the investigation.<ref name=":0">{{Cite news|url=https://www.nytimes.com/1990/08/25/us/5-south-carolina-lawmakers-indicted-in-corruption-inquiry.html|title=5 South Carolina Lawmakers Indicted in Corruption Inquiry|last1=Smothers|first1=Ronald|date=1990-08-25|work=The New York Times|access-date=2019-05-31|last2=Times|first2=Special to The New York|language=en-US|issn=0362-4331}}</ref> The investigators were looking for self-reported disclosures of the in-total $30,000 that investigators doled out to tempt lawmakers during the election season.<ref>{{Cite web|url=https://www.postandcourier.com/politics/lost-trust-shook-state-years-ago/article_92d416f5-eab6-5e84-b3f1-d73105187928.html|title=Lost Trust shook state 20 years ago|last=Kropf|first=Schuyler|website=Post and Courier|language=en|access-date=2019-05-31}}</ref> Five legislators, including State Representative Robert A. Kohn, were initially indicted for failure to disclose the payments and violating the [[Hobbs Act]]. Kohn later agreed to cooperate with prosecutors. While the four indicted members of the General Assembly in the House of Representatives were suspended from official duties, the lone senator, William Richard Lee, was able to continue his work in the [[South Carolina Senate]].
In July 1990, a grand jury subpoenaed the campaign finance records of all 170 members of the General Assembly, consequently revealing the existence of the investigation.<ref name=":0">{{Cite news|url=https://www.nytimes.com/1990/08/25/us/5-south-carolina-lawmakers-indicted-in-corruption-inquiry.html|title=5 South Carolina Lawmakers Indicted in Corruption Inquiry|last=Smothers|first=Ronald|date=1990-08-25|work=The New York Times|access-date=2019-05-31|language=en-US|issn=0362-4331|archive-date=2019-05-31|archive-url=https://web.archive.org/web/20190531171507/https://www.nytimes.com/1990/08/25/us/5-south-carolina-lawmakers-indicted-in-corruption-inquiry.html|url-status=live}}</ref> The investigators were looking for self-reported disclosures of the in-total $30,000 that investigators doled out to tempt lawmakers during the election season.<ref>{{Cite web|url=https://www.postandcourier.com/politics/lost-trust-shook-state-years-ago/article_92d416f5-eab6-5e84-b3f1-d73105187928.html|title=Lost Trust shook state 20 years ago|last=Kropf|first=Schuyler|website=Post and Courier|date=4 July 2010 |language=en|access-date=2019-05-31|archive-date=2019-05-31|archive-url=https://web.archive.org/web/20190531231203/https://www.postandcourier.com/politics/lost-trust-shook-state-years-ago/article_92d416f5-eab6-5e84-b3f1-d73105187928.html|url-status=live}}</ref> Five legislators, including State Representative Robert A. Kohn (R),<ref name=":0" /> were initially indicted for failure to disclose the payments and violating the [[Hobbs Act]]. Kohn later agreed to cooperate with prosecutors. While the four indicted members of the General Assembly in the House of Representatives were suspended from official duties, the lone senator, William Richard Lee (R),<ref name=":0" /> was able to continue his work in the [[South Carolina Senate]].


Those convicted included:<ref>{{Cite web |title=Operation Lost Trust |url=https://www.scencyclopedia.org/sce/entries/operation-lost-trust/ |archive-url=https://web.archive.org/web/20161015030615/http://www.scencyclopedia.org/ |archive-date=15 October 2016 |access-date=2023-06-23 |website=South Carolina Encyclopedia |language=en-US}}</ref><ref>{{Cite web|url=http://www.scencyclopedia.org/sce/entries/operation-lost-trust/|title=Operation Lost Trust|access-date=2021-04-23|archive-date=2021-07-27|archive-url=https://web.archive.org/web/20210727235015/https://www.scencyclopedia.org/sce/entries/operation-lost-trust/|url-status=live}}</ref>
Those convicted include:
⚫
#[[Jack Rogers (politician)|Jack Rogers]] (D) — State Representative and Speaker Pro Temp from the 54th District; was accused of extorting money from lobbyists. He pled guilty to a charge of racketeering, and was sentenced to 45 months in prison. (1991)<ref>{{cite news | work = [[The New York Times]] | date = January 5, 1991 | title = 2 More Indictments Charge Corruption In South Carolina | author = AP | url = https://www.nytimes.com/1991/01/05/us/2-more-indictments-charge-corruption-in-south-carolina.html%202%20More%20Indictments%20Charge%20Corruption%20In%20South%20Carolina | access-date = April 23, 2021 | archive-date = April 23, 2021 | archive-url = https://web.archive.org/web/20210423180514/https://www.nytimes.com/1991/01/05/us/2-more-indictments-charge-corruption-in-south-carolina.html%202%20More%20Indictments%20Charge%20Corruption%20In%20South%20Carolina | url-status = live }}</ref><ref>{{cite news | publisher = scribd.com | date = September 29, 1992 | title = United States v. John I. Rogers, III, 976 F.2d 728, 4th Cir. (1992) | author = United States Court of Appeals, Fourth District | url = https://www.scribd.com/document/321553484/United-States-v-John-I-Rogers-III-976-F-2d-728-4th-Cir-1992 | access-date = April 23, 2021 | archive-date = February 24, 2019 | archive-url = https://web.archive.org/web/20190224231925/https://www.scribd.com/document/321553484/United-States-v-John-I-Rogers-III-976-F-2d-728-4th-Cir-1992 | url-status = live }}</ref>
<ref>[http://www.scencyclopedia.org] | Operation Lost Trust 1989—1999 | Operation Lost Trust was arguably South Carolina’s largest and longest-running political scandal | Written by Jon B. Pierce | [http://www.scencyclopedia.org/sce/entries/operation-lost-trust/]</ref><ref>[https://www.postandcourier.com] | July 4, 2010 | Lost Trust shook state 20 years ago | Schuyler Kropf | [https://www.postandcourier.com/politics/lost-trust-shook-state-years-ago/article_92d416f5-eab6-5e84-b3f1-d73105187928.html]</ref><ref>{{Cite web|url=http://www.scencyclopedia.org/sce/entries/operation-lost-trust/|title = Operation Lost Trust}}</ref>
⚫
#[[Kenneth E. Bailey Sr.]] (D) — State Representative of [[Eutawville, South Carolina|Eutawville]]; accepted a $500 cash bribe, and was convicted of conspiracy.<ref name="law.justia.com">{{Cite web|url=https://law.justia.com/cases/federal/appellate-courts/F2/990/119/434018/|title=United States of America, Plaintiff-appellee, v. Kenneth e. Bailey, Defendant-appellant, 990 F.2d 119 (4th Cir. 1993)|access-date=2021-04-23|archive-date=2021-04-23|archive-url=https://web.archive.org/web/20210423180516/https://law.justia.com/cases/federal/appellate-courts/F2/990/119/434018/|url-status=live}}</ref><ref>{{Cite web|url=http://www.scstatehouse.gov/sess108_1989-1990/hj89/19881206.htm|title=HOUSE JOURNAL for Dec. 6, 1988 - South Carolina Legislature Online|access-date=2021-04-23|archive-date=2020-10-07|archive-url=https://web.archive.org/web/20201007014813/https://www.scstatehouse.gov/sess108_1989-1990/hj89/19881206.htm|url-status=live}}</ref><ref>{{Cite journal |last1=Jurist |first1=Open |last2=Circuit |first2=Fourth |date=December 1992 |title=990 F2d 119 United States v. E Bailey |url=http://openjurist.org/990/f2d/119/united-states-v-e-bailey |url-status=live |journal=Federal Reporter |series=Second Series |volume=<!----> |issue=990 |page=119 |archive-url=https://web.archive.org/web/20220130201224/https://openjurist.org/990/f2d/119/united-states-v-e-bailey |archive-date=2022-01-30 |access-date=2021-04-23}}</ref>
⚫
#[[Jack Rogers (politician)]] (D) State Representative and Speaker Pro Temp from the 54th District, was accused of extorting money from lobbyists. He pled guilty to a charge of racketeering and was sentenced to 45 months in prison. (1991)<ref>{{cite news | work = [[The New York Times]] | date = January 5, 1991 | title = 2 More Indictments Charge Corruption In South Carolina | author = AP | url = https://www.nytimes.com/1991/01/05/us/2-more-indictments-charge-corruption-in-south-carolina.html%202%20More%20Indictments%20Charge%20Corruption%20In%20South%20Carolina}}</ref><ref>[http://articles.orlandosentinel.com/1991-05-09/news/9105090776_1_sting-racketeering-undercover Ex-legislator Pleads Guilty In S.C. Racketeering Sting]</ref><ref>{{cite news | publisher = scribd.com | date = September 29, 1992 | title = United States v. John I. Rogers, III, 976 F.2d 728, 4th Cir. (1992) | author = United States Court of Appeals, Fourth District | url = https://www.scribd.com/document/321553484/United-States-v-John-I-Rogers-III-976-F-2d-728-4th-Cir-1992 }}</ref>
⚫
#[[Larry Blanding]] (D) — State Representative from [[Sumter, South Carolina|Sumter]]. After several trials and reversals, Blanding was found guilty of conspiracy and extortion, and sentenced to 37 months.<ref name="casetext.com">{{Cite web|url=https://casetext.com/case/us-v-taylor-dsc-1999|title=U.S. v. Taylor, 956 F. Supp. 622 &#124; Casetext Search + Citator|website=casetext.com|access-date=2021-04-23|archive-date=2021-04-23|archive-url=https://web.archive.org/web/20210423180514/https://casetext.com/case/us-v-taylor-dsc-1999|url-status=live}}</ref><ref>United States v. Derrick, 163 F.3d 799 (4th Cir. 1998)</ref>
⚫
#Kenneth E. Bailey Sr. (D) State Representative of Eutawville, accepted a $500 cash bribe and was convicted of conspiracy.<ref name="law.justia.com">{{Cite web|url=https://law.justia.com/cases/federal/appellate-courts/F2/990/119/434018/|title = United States of America, Plaintiff-appellee, v. Kenneth e. Bailey, Defendant-appellant, 990 F.2d 119 (4th Cir. 1993)}}</ref><ref>{{Cite web|url=http://www.scstatehouse.gov/sess108_1989-1990/hj89/19881206.htm|title = HOUSE JOURNAL for Dec. 6, 1988 - South Carolina Legislature Online}}</ref><ref>{{Cite document|url=http://openjurist.org/990/f2d/119/united-states-v-e-bailey|title=990 F2d 119 United States v. E Bailey|date=December 1992|volume=F2d|issue=990|page=119|last2=Circuit|first2=Fourth}}</ref>
#Robert B. Brown (D) — State Representative from [[Charleston, South Carolina|Charleston]]; pled guilty to bribery.<ref>{{Cite web |date=10 September 1990 |title=Former S.C. State Senator Pleads Guilty In Bribery Case |url=https://apnews.com/article/e264837e3c41d29e381293baed89e370 |archive-url=https://web.archive.org/web/20210423180526/https://apnews.com/article/e264837e3c41d29e381293baed89e370 |archive-date=23 April 2021 |access-date=2023-06-23 |website=AP NEWS |language=en}}</ref><ref>{{Cite web |last=Julia |first=M. Klein |date=9 September 1990 |title=Bribery Allegations Rock S.c. Legislature |url=http://articles.philly.com/1990-09-09/news/25879936_1_public-corruption-operation-lost-trust-pleasure |archive-url=https://web.archive.org/web/20151225191132/http://articles.philly.com/1990-09-09/news/25879936_1_public-corruption-operation-lost-trust-pleasure |archive-date=25 December 2015 |access-date=23 June 2023 |website=philly.com}}</ref>
⚫
#Larry Blanding (D) State Representative from Sumter, after several trials and reversals, Blanding was found guilty of conspiracy and extortion and sentenced to 37 months.<ref name="casetext.com">{{Cite web|url=https://casetext.com/case/us-v-taylor-dsc-1999|title=U.S. V. Taylor, 956 F. Supp. 622 &#124; Casetext Search + Citator}}</ref><ref>[United States v. Derrick, 163 F.3d 799 (4th Cir. 1998)</ref>
⚫
#Paul Wayne Derrick (R) — State Representative of [[Lexington, South Carolina|Lexington]]; was found guilty of conspiracy and extortion for accepting $1,000 in bribes. He was sentenced to 34 months.<ref>[https://www.goupstate.com S.C. STING Derrick found guilty The State] {{Webarchive|url=https://web.archive.org/web/20190601093159/https://www.goupstate.com/|date=2019-06-01}}, May 12, 1991, | [https://www.goupstate.com/news/19910512/sc-sting-derrick-found-guilty-the-state] {{Webarchive|url=https://web.archive.org/web/20210423180529/https://www.goupstate.com/news/19910512/sc-sting-derrick-found-guilty-the-state|date=2021-04-23}}</ref><ref>{{Cite web |date=3 February 1994 |title=United States of America, Plaintiff-appellee, v. Paul Wayne Derrick, Defendant-appellant, 16 F.3d 412 (4th Cir. 1994) |url=https://law.justia.com/cases/federal/appellate-courts/F3/16/412/491499/ |url-status=live |archive-url=https://archive.today/20231118164546/https://law.justia.com/cases/federal/appellate-courts/F3/16/412/491499/ |archive-date=18 November 2023 |access-date=22 June 2023 |website=Justia Law |language=en}}</ref>
#Robert B. Brown (D) State Representative from Charleston, pled guilty to bribery.<ref>[https://apnews.com] | September 10, 1990 | Former S.C. State Senator Pleads Guilty In Bribery Case | [https://apnews.com/e264837e3c41d29e381293baed89e370</ref><ref>http://articles.philly.com, POSTED: September 09, 1990, Bribery Allegations Rock S.C. Legislature By Julia M. Klein, Inquirer Staff Writer [http://articles.philly.com/1990-09-09/news/25879936_1_public-corruption-operation-lost-trust-pleasure]</ref>
⚫
#[[Ennis M. Fant]] (D) — State Representative from [[Greenville, South Carolina|Greenville]]; pled guilty to conspiracy and extortion, received 20 months.<ref name="casetext.com"/><ref>{{Cite web |title=FILE PHOTO Ennis Fant ...a Baptist minister Fant gets 20 months for conspiracy |url=https://www.goupstate.com/story/news/1991/08/01/file-photo-ennis-fant-a-baptist-minister-fant-gets-20-months-for-conspiracy/29537540007/ |archive-url=https://web.archive.org/web/20170602202929/http://www.goupstate.com/news/19910801/file-photo-ennis-fant-a-baptist-minister-fant-gets-20-months-for-conspiracy?start=2 |archive-date=2 June 2017 |access-date=2023-06-23 |website=Spartanburg Herald Journal |language=en-US}}</ref>
⚫
#Paul Wayne Derrick (R) State Representative of Lexington, was found guilty of conspiracy and extortion for accepting $1,000 in bribes. He was sentenced to 34 months.<ref>[https://www.goupstate.com] | May 12, 1991 | S.C. STING Derrick found guilty The State | [https://www.goupstate.com/news/19910512/sc-sting-derrick-found-guilty-the-state]</ref><ref>United States of America, Plaintiff-appellee, v. Paul Wayne Derrick, Defendant-appellant, 16 F.3d 412 (4th Cir. 1994)Annotate this Case, U.S. Court of Appeals for the Fourth Circuit - 16 F.3d 412 (4th Cir. 1994) Submitted Dec. 13, 1993. Decided Feb. 3, 1994 [http://law.justia.com/cases/federal/appellate-courts/F3/16/412/491499/]</ref>
⚫
#Jim Faber (D) — State Representative from [[Richland County, South Carolina|Richland County]]; pled guilty to accepting a 41,000 bribe.<ref>{{Cite web |last=WILSON |first=JILL |date=March 1, 1991 |title=Two Ex-S.C. Legislators Plead Guilty To Accepting Bribes In FBI Sting |url=https://apnews.com/article/c79e8deed98eda713e628181b690ac6f |archive-url=https://web.archive.org/web/20210423180516/https://apnews.com/article/c79e8deed98eda713e628181b690ac6f |archive-date=23 April 2021 |access-date=2023-06-23 |website=AP NEWS |language=en}}</ref><ref name="news.google.com">{{Cite web|url=https://news.google.com/newspapers?nid=1980&dat=19910301&id=ooUiAAAAIBAJ&sjid=xKkFAAAAIBAJ&pg=5022,5601&hl=en|title=The Item - Google News Archive Search|website=news.google.com|access-date=2021-04-23|archive-date=2021-04-23|archive-url=https://web.archive.org/web/20210423180515/https://news.google.com/newspapers?nid=1980&dat=19910301&id=ooUiAAAAIBAJ&sjid=xKkFAAAAIBAJ&pg=5022,5601&hl=en|url-status=live}}</ref>
⚫
#Ennis M. Fant (D) State Representative from Greenville, pled guilty to conspiracy and extortion, received 20 months.<ref name="casetext.com"/><ref>http://www.goupstate.com | a Baptist minister Fant gets 20 months for conspiracy | Thursday, Aug 1, 1991 | [http://www.goupstate.com/news/19910801/file-photo-ennis-fant-a-baptist-minister-fant-gets-20-months-for-conspiracy]</ref>
⚫
#James C. [[Tee Ferguson]] (D) — State Representative and Circuit Judge of [[Spartanburg, South Carolina|Spartanburg]]; guilty of extortion and drug charges, and sentenced to 33 months.<ref>{{Cite news |date=11 August 1992 |title=Ex-Judge Is Sentenced For Bribery and Drugs |language=en-US |work=[[The New York Times]] |agency=[[Associated Press]] |url=https://www.nytimes.com/1992/08/11/us/ex-judge-is-sentenced-for-bribery-and-drugs.html |url-status=live |access-date=23 June 2023 |archive-url=https://archive.today/20231118165110/https://www.nytimes.com/1992/08/11/us/ex-judge-is-sentenced-for-bribery-and-drugs.html |archive-date=18 November 2023 |issn=0362-4331}}</ref><ref>{{Cite web|url=http://law.justia.com/cases/federal/appellate-courts/F3/4/986/525817/|title=United States of America, Plaintiff-appellee, v. James C. Ferguson, A/K/A Tee, Defendant-appellant.united States of America, Plaintiff-appellee, v. James C. Ferguson, A/K/A Tee, Defendant-appellant, 4 F.3d 986 (4th Cir. 1993)|access-date=2021-04-23|archive-date=2017-06-08|archive-url=https://web.archive.org/web/20170608044346/http://law.justia.com/cases/federal/appellate-courts/F3/4/986/525817/|url-status=live}}</ref>
⚫
#Jim Faber (D) State Representative from Richland County, pled guilty to accepting a 41,000 bribe.<ref>[https://www.apnews.com] | March 1, 1991 | Two Ex-S.C. Legislators Plead Guilty To Accepting Bribes In FBI Sting | JILL WILSON | Associated Press | [https://www.apnews.com/c79e8deed98eda713e628181b690ac6f]</ref><ref name="news.google.com">{{Cite web|url=https://news.google.com/newspapers?nid=1980&dat=19910301&id=ooUiAAAAIBAJ&sjid=xKkFAAAAIBAJ&pg=5022,5601&hl=en|title=The Item - Google News Archive Search}}</ref>
#[[Benjamin J. Gordon Jr]]. (D) — State Representative of [[Kingstree, South Carolina|Kingstree]]; found guilty of conspiracy and extortion, but died during appeal.<ref name="casetext.com"/><ref name="ReferenceA">{{Cite web|url=https://casetext.com/case/us-v-derrick|title=U.S. V. Derrick, 163 F.3d 799 &#124; Casetext Search + Citator|access-date=2021-04-23|archive-date=2021-04-23|archive-url=https://web.archive.org/web/20210423182019/https://casetext.com/case/us-v-derrick|url-status=live}}</ref><ref>{{Cite web |date=13 March 1997 |title=1997–98 Bill 3656: The Honorable Benjamin J. Gordon, Jr., Resolutions — South Carolina Legislature Online |url=https://www.scstatehouse.gov/sess112_1997-1998/bills/3656.htm |url-status=live |archive-url=https://archive.today/20231118170043/https://www.scstatehouse.gov/sess112_1997-1998/bills/3656.htm |archive-date=18 November 2023 |access-date=23 June 2023 |website=www.scstatehouse.gov}}</ref><ref>{{Cite journal|url=https://openjurist.org/990/f2d/119/united-states-v-e-bailey|title=990 F2d 119 United States v. E Bailey|first1=United States Court of|last1=Appeals|first2=Fourth|last2=Circuit|date=December 1, 1992|volume=F2d|issue=990|pages=119|via=openjurist.org|access-date=June 22, 2023|archive-date=January 30, 2022|archive-url=https://web.archive.org/web/20220130201224/https://openjurist.org/990/f2d/119/united-states-v-e-bailey|url-status=live}}</ref>
⚫
#James C. Ferguson (D) State Representative and Circuit Judge of Spartanburg, guilty of extortion and drug charges, sentenced to 33 months.<ref>[https://www.goupstate.com] | October 9, 2011 | Former judge, state legislator James ‘Tee’ Ferguson dies |By LINDA CONLEY | [https://www.goupstate.com/news/20111009/former-judge-state-legislator-james-tee-ferguson-dies}</ref><ref>{{Cite web|url=http://law.justia.com/cases/federal/appellate-courts/F3/4/986/525817/|title = United States of America, Plaintiff-appellee, v. James C. Ferguson, A/K/A Tee, Defendant-appellant.united States of America, Plaintiff-appellee, v. James C. Ferguson, A/K/A Tee, Defendant-appellant, 4 F.3d 986 (4th Cir. 1993)}}</ref>
⚫
#Robert Albert Kohn (R) — State Senator from [[Charleston, South Carolina|Charleston]]; pled guilty to conspiracy and bribery, and served seven months in prison.<ref name="casetext.com"/><ref>{{Cite web |date=2021-04-23 |title=From the archives: Ron Cobb five years after Lost Trust {{!}} The State |url=https://www.thestate.com/opinion/opn-columns-blogs/cindi-ross-scoppe/article102026962.html |access-date=2023-06-22 |archive-url=https://web.archive.org/web/20210423180516/https://www.thestate.com/opinion/opn-columns-blogs/cindi-ross-scoppe/article102026962.html |archive-date=2021-04-23 }}</ref>
#Benjamin J. Gordon (D) State Representative of Kingstree, found guilty of conspiracy and extortion, but died during appeal.<ref name="casetext.com"/><ref name="ReferenceA">{{Cite web|url=https://casetext.com/case/us-v-derrick|title = U.S. V. Derrick, 163 F.3d 799 &#124; Casetext Search + Citator}}</ref><ref>{{Cite web|url=http://www.scstatehouse.gov/sess112_1997-1998/bills/3656.htm|title = 1997-98 Bill 3656: The Honorable Benjamin J. Gordon, Jr., Resolutions - South Carolina Legislature Online}}</ref><ref>[ref>[http://openjurist.org/990/f2d/119/united-states-v-e-bailey]</ref>
⚫
#Rick Lee (R) — State Senator from [[Boiling Springs, South Carolina|Boiling Springs]]; pled guilty to accepting a $2,000 bribe. He was sentenced to six months at a [[halfway house]].<ref>{{Cite web|url = https://apnews.com/e264837e3c41d29e381293baed89e370|title = Former S.C. State Senator Pleads Guilty in Bribery Case|website = [[Associated Press]]|access-date = 2021-04-23|archive-date = 2021-04-23|archive-url = https://web.archive.org/web/20210423180526/https://apnews.com/e264837e3c41d29e381293baed89e370|url-status = live}}</ref><ref>{{cite news | website=www.goupstate.com | date=Aug 25, 1990 | title=Indictment charges Lee with taking $2,000 bribe | agency=Associated Press | url=https://www.goupstate.com/news/19900825/indictment-charges-lee-with-taking-2000-bribe | access-date=April 23, 2021 | archive-date=April 23, 2021 | archive-url=https://web.archive.org/web/20210423180520/https://www.goupstate.com/news/19900825/indictment-charges-lee-with-taking-2000-bribe | url-status=live }}</ref>
⚫
#Robert Albert Kohn (R) State Senator from Charleston, pled guilty to conspiracy and bribery, served seven months in prison.<ref name="casetext.com"/><ref>[https://www.thestate.com/opinion/opn-columns-blogs/cindi-ross-scoppe/article102026962.html]</ref>
#Thomas Limehouse (D) — State Representative from [[Dorchester County, South Carolina|Dorchester]]; pled guilty to charges of conspiring to accept a bribe and tampering with a witness. Sentenced to 20 months.<ref>{{cite news | website=www.apnews.com | date=December 7, 1990 | title=Former State Lawmaker Pleads Guilty in Statehouse Scandal | author=BRUCE SMITH | agency=Associated Press | url=https://www.apnews.com/6e9c689fbd5ac5bd3a29975a32f1cc0c | access-date=April 23, 2021 | archive-date=April 23, 2021 | archive-url=https://web.archive.org/web/20210423180517/https://apnews.com/6e9c689fbd5ac5bd3a29975a32f1cc0c | url-status=live }}</ref><ref>{{Cite web|url=https://news.google.com/newspapers?nid=1980&dat=19930406&id=HVQvAAAAIBAJ&sjid=xdoFAAAAIBAJ&pg=3624,1390185&hl=en|title=The Item - Google News Archive Search|website=news.google.com|access-date=2021-04-23|archive-date=2021-04-23|archive-url=https://web.archive.org/web/20210423180527/https://news.google.com/newspapers?nid=1980&dat=19930406&id=HVQvAAAAIBAJ&sjid=xdoFAAAAIBAJ&pg=3624,1390185&hl=en|url-status=live}}</ref>
⚫
#Rick Lee (R) State Senator from Boiling Springs, pled guilty to accepting a $2,000 bribe. He was sentenced to six months at a halfway house.<ref>{{Cite web|url=https://apnews.com/e264837e3c41d29e381293baed89e370|title = Former S.C. State Senator Pleads Guilty in Bribery Case|website = [[Associated Press]]}}</ref><ref>[https://www.goupstate.com] | Aug 25, 1990 | Indictment charges Lee with taking $2,000 bribe | Associated Press | [https://www.goupstate.com/news/19900825/indictment-charges-lee-with-taking-2000-bribe]</ref>
#Thomas Limehouse (D) State Representative from Dorchester, pleaded guilty to charges of conspiring to accept a bribe and tampering with a witness. Sentenced to 20 months.<ref>[https://www.apnews.com] | December 7, 1990 | Former State Lawmaker Pleads Guilty in Statehouse Scandal | BRUCE SMITH | Associatd Press | [https://www.apnews.com/6e9c689fbd5ac5bd3a29975a32f1cc0c]</ref><ref>{{Cite web|url=https://news.google.com/newspapers?nid=1980&dat=19930406&id=HVQvAAAAIBAJ&sjid=xdoFAAAAIBAJ&pg=3624,1390185&hl=en|title=The Item - Google News Archive Search}}</ref>
#John Charles “Jack” Lindsay (D) — State Senator from [[Marlboro County, South Carolina|Marlboro]]; found guilty in the Lost Trust investigation, but died during appeals.<ref>{{Cite web|url=https://www.apnews.com/6e9c689fbd5ac5bd3a29975a32f1cc0c|title=Former State Lawmaker Pleads Guilty in Statehouse Scandal|website=[[Associated Press]]|access-date=2021-04-23|archive-date=2021-04-23|archive-url=https://web.archive.org/web/20210423180517/https://apnews.com/6e9c689fbd5ac5bd3a29975a32f1cc0c|url-status=live}}</ref><ref>{{Cite web |title=1991-92 Bill 518: Lindsay, Senator John C. "Jack" - South Carolina Legislature Online |url=https://www.scstatehouse.gov/sess109_1991-1992/bills/518.htm |access-date=2023-06-23 |website=www.scstatehouse.gov}}</ref>
#Jack Lindsay (D) (John Charles Lindsay) State Senator from Marlboro, found guilty in the Lost Trust investigation, but died during appeals.<ref>{{Cite web|url=https://www.apnews.com/6e9c689fbd5ac5bd3a29975a32f1cc0c|title=Former State Lawmaker Pleads Guilty in Statehouse Scandal|website=[[Associated Press]]}}</ref><ref>[http://chronicle.augusta.com/stories/1997/12/04/met_218526.shtml#.Vj25uvmrS1s]</ref>
#[[Jefferson Marion Long Jr.]] (D) — State Senator from [[Horry County, South Carolina|Horry]]; guilty to $42,000 bribe.<ref name="ReferenceA"/><ref>Ex-Sen. Long, Lost Trust Figure, Dies, The Post and Courier, Apr. 28, 2003.</ref><ref>{{cite news|website=www.goupstate.com | title=Ex-state senator involved in Operation Lost Trust dies |agency=Associated Press | date=Apr 28, 2003 | url=http://www.goupstate.com/news/20030428/ex-state-senator-involved-in-operation-lost-trust-dies}}</ref>
⚫
#[[Frank McBride]] (D) — State Representative from [[Columbia, South Carolina|Columbia]]; pled guilty to accepting $1000 in bribes.<ref name="law.justia.com"/><ref>{{cite news | website=www.apnews.com | date=March 1, 1991 | title=Two Ex-S.C. Legislators Plead Guilty To Accepting Bribes In FBI Sting | author=JILL WILSON | url=https://www.apnews.com/c79e8deed98eda713e628181b690ac6f | access-date=April 23, 2021 | archive-date=April 23, 2021 | archive-url=https://web.archive.org/web/20210423180516/https://apnews.com/c79e8deed98eda713e628181b690ac6f | url-status=live }}</ref><ref name="news.google.com"/>
#Jefferson Marion Long, Jr. (D) ‘Bud,’ State Representative from Horry, guilty to $42,000 bribe.<ref name="ReferenceA"/><ref>Ex-Sen. Long, Lost Trust Figure, Dies, The Post and Courier, Apr. 28, 2003.</ref><ref>http://www.goupstate.com | Ex-state senator involved in Operation Lost Trust dies By Associated Press | Monday, Apr 28, 2003 | [http://www.goupstate.com/news/20030428/ex-state-senator-involved-in-operation-lost-trust-dies]</ref>
#[[Luther L Taylor Jr|Luther L Taylor, Jr]]. (D) — State Representative from [[Columbia, South Carolina|Columbia]]; pled guilty to conspiracy and bribery, and was sentenced to 80 months in prison, but died during appeals.<ref>{{cite news | newspaper=New York Times | date=October 26, 1990 | title=State Lawmaker Found Guilty in a South Carolina Bribery Case | url=https://www.nytimes.com/1990/10/26/us/state-lawmaker-is-found-guilty-in-a-south-carolina-bribery-case.html | access-date=April 23, 2021 | archive-date=April 24, 2021 | archive-url=https://web.archive.org/web/20210424061439/https://www.nytimes.com/1990/10/26/us/state-lawmaker-is-found-guilty-in-a-south-carolina-bribery-case.html | url-status=live }}</ref><ref>{{Cite web |title=Inquirer.com: Philadelphia local news, sports, jobs, cars, homes |url=https://www.inquirer.com/archives/ |url-status=live |archive-url=https://web.archive.org/web/20160304002205/http://articles.philly.com/1987-07-02/entertainment/26200183_1_dragnet-lovely-movie-star |archive-date=2016-03-04 |access-date=2023-06-22 |website=inquirer}}</ref>
⚫
#Frank McBride (D) State Representative from Columbia, pled guilty to accepting $1000 in bribes.<ref name="law.justia.com"/><ref>[https://www.apnews.com] | March 1, 1991 | Two Ex-S.C. Legislators Plead Guilty To Accepting Bribes In FBI Sting | JILL WILSON | [https://www.apnews.com/c79e8deed98eda713e628181b690ac6f]</ref><ref name="news.google.com"/>
⚫
#[[Daniel E. Winstead]] (R) — State Representative from [[Charleston, South Carolina|Charleston]]; pled guilty to accepting bribes and obstruction of justice.<ref>{{Cite web|url=https://www.goupstate.com/news/19900831/lawmakers-5-make-pleas-released-on-bonds|title=LAWMAKERS 5 make pleas, released on bonds|access-date=2021-04-23|archive-date=2021-04-23|archive-url=https://web.archive.org/web/20210423180516/https://www.goupstate.com/news/19900831/lawmakers-5-make-pleas-released-on-bonds|url-status=live}}</ref>
#[[Jack Rogers (politician)]] (D) (John Irby Rogers III) State Representative from Bennettsville, was indicted on charges of racketeering, bribery, witness tampering and extortion in extracting thousands of dollars from lobbyists. He was sentenced to 46 months.<ref>[https://www.washingtonpost.com] | January 5, 1991 | Two More South Carolina Officials Face Corruption Charges | [https://www.washingtonpost.com/archive/politics/1991/01/05/two-more-south-carolina-officials-face-corruption-charges/d1a8783b-616c-4b2a-a6b9-31b525b31474/?utm_term=.87d3720786c9]</ref><ref>[http://articles.orlandosentinel.com/1991-05-09/news/9105090776_1_sting-racketeering-undercover] {{Bare URL inline|date=November 2021}}</ref><ref>{{Cite news|url=http://www.nytimes.com/1991/01/05/us/2-more-indictments-charge-corruption-in-south-carolina.html|title = 2 More Indictments Charge Corruption in South Carolina|newspaper = The New York Times|date = 5 January 1991}}</ref>
#Luther L. Taylor Jr. (D) State Representative from Columbia, pled guilty to conspiracy and bribery and was sentenced to 80 months in prison, but died during appeals.<ref>[https://www.nytimes.com] | October 26, 1990 | State Lawmaker Found Guilty in a South Carolina Bribery Case | [https://www.nytimes.com/1990/10/26/us/state-lawmaker-is-found-guilty-in-a-south-carolina-bribery-case.html?mtrref=www.google.com&gwh=A83FAB33F7AA63E2072EB1C5CB17D42D&gwt=pay]</ref><ref>[http://articles.philly.com/1990-09-09/news/25879936_1_public-corruption-operation-lost-trust-pleasure]</ref>
⚫
#Daniel E. Winstead (R) State Representative from Charleston, pled guilty to accepting bribes and obstruction of justice.<ref>{{Cite web|url=https://www.goupstate.com/news/19900831/lawmakers-5-make-pleas-released-on-bonds|title = LAWMAKERS 5 make pleas, released on bonds}}</ref>


At that time, South Carolina required that state lawmakers report any campaign contributions they received to the respective ethics committee of their governing body. After the initial five indictments made the news, Governor [[Carroll A. Campbell Jr.]] and Speaker of the House [[Robert Sheheen]] both stated that reforms to this system were in order.<ref name=":0" /> Out of the 28 indictments in total (lobbyists were also indicted) only the indictment of Representative Tom Wilkes resulted in a no guilty verdict.<ref>{{Cite web|url=https://www.abccolumbia.com/2014/11/21/operation-lost-trust-the-tim-wilkes-story/|title=Operation Lost Trust: The Tim Wilkes Story|date=2014-11-21|website=ABC Columbia|language=en-US|access-date=2019-05-31}}</ref> The South Carolina Legislative Black Caucus raised concerns about the large number of African American lawmakers charged during the investigation.<ref>{{Cite web|url=https://www.goupstate.com/article/19910223/News/605191726|title='LOST TRUST' Fant pleads guilty|website=GoUpstate|language=en|access-date=2019-05-31}}</ref>
At that time, South Carolina required that state lawmakers report any campaign contributions they received to the respective ethics committee of their governing body. After the initial five indictments made the news, Governor [[Carroll A. Campbell Jr.]] (R) and Speaker of the House [[Robert Sheheen]] (D) both stated that reforms to this system were in order.<ref name=":0" /> Out of the 28 indictments in total (including indicted lobbyists), only the indictment of Representative Timothy Castles Wilkes (D)<ref>{{Cite news |date=23 May 1991 |title=Five Men Indicted in S.C. Statehouse Investigation |work=Greensboro [[News & Record]] |url=https://greensboro.com/five-men-indicted-in-s-c-statehouse-investigation/article_b0f82ba8-f17d-5ef5-88d4-bfba57d8dbf0.html |url-status=live |access-date=30 October 2023 |archive-url=https://archive.today/20231030105109/https://greensboro.com/five-men-indicted-in-s-c-statehouse-investigation/article_b0f82ba8-f17d-5ef5-88d4-bfba57d8dbf0.html |archive-date=30 October 2023}}</ref> resulted in a not guilty verdict.<ref>{{Cite web|url=https://www.abccolumbia.com/2014/11/21/operation-lost-trust-the-tim-wilkes-story/|title=Operation Lost Trust: The Tim Wilkes Story|date=2014-11-21|website=ABC Columbia|language=en-US|access-date=2019-05-31|archive-date=2019-05-31|archive-url=https://web.archive.org/web/20190531171506/https://www.abccolumbia.com/2014/11/21/operation-lost-trust-the-tim-wilkes-story/|url-status=live}}</ref> The South Carolina Legislative Black Caucus raised concerns about the large number of [[African Americans|African American]] lawmakers charged during the investigation.<ref>{{Cite web|url=https://www.goupstate.com/article/19910223/News/605191726|title='LOST TRUST' Fant pleads guilty|website=GoUpstate|language=en|access-date=2019-05-31}}</ref>


== Aftermath ==
== Aftermath ==


=== Ethics Reform Act of 1991 ===
=== Ethics Reform Act of 1991 ===
In response to Operation Lost Trust, state lawmakers passed the Ethics Reform Act of 1991. This act made it illegal for lobbyists to give any gift, including a campaign contribution, to any serving member of the government. It also capped donations from lobbying firms (lobbyists themselves had to be uninvolved in the decision) to $1,000 when it was previously unlimited. The act also regulated how businesses and organizations which employ lobbyists could entertain lawmakers, ensuring that the entertainment was conducted only in formal groups.<ref name=":1">{{Cite web|url=https://www.thestate.com/opinion/opn-columns-blogs/cindi-ross-scoppe/article81437732.html|title=What Operation Lost Trust meant to South Carolina|last=Editor|first=Cindi Ross Scoppe Associate|website=thestate|language=en|access-date=2019-05-31}}</ref>
In response to Operation Lost Trust, state lawmakers passed the Ethics Reform Act of 1991. This act made it illegal for lobbyists to give any gift, including campaign contributions, to any serving member of the government. It also capped donations from lobbying firms (lobbyists themselves had to be uninvolved in the decision) to $1,000 when it was previously unlimited. The act also regulated how businesses and organizations which employ lobbyists could entertain lawmakers, ensuring that the entertainment was conducted only in formal groups.<ref name=":1">{{Cite web |last=Cindi |first=Ross Scoppe |title=What Operation Lost Trust meant to South Carolina |url=https://www.thestate.com/opinion/opn-columns-blogs/cindi-ross-scoppe/article81437732.html |url-status=live |archive-url=https://web.archive.org/web/20190531205521/https://www.thestate.com/opinion/opn-columns-blogs/cindi-ross-scoppe/article81437732.html |archive-date=2019-05-31 |access-date=2019-05-31 |website=thestate |language=en}}</ref>


=== Strengthening the governorship ===
=== Strengthening the governorship ===
On February 23, 1993, a bill was introduced to the [[South Carolina House of Representatives]] to restructure the state government.<ref>{{Cite web|url=https://www.scstatehouse.gov/billsearch.php?billnumbers=3546&session=110&summary=B|title=South Carolina Legislature Online - Bill Search by Bill Number|website=www.scstatehouse.gov|access-date=2019-06-01}}</ref> Up to this point, the governor of South Carolina had largely been a ceremonial figurehead with limited power. However, after Operation Lost Trust, the General Assembly voted to give the governor what was essentially a "third" of its power.<ref name=":2">{{Cite web|url=https://www.thestate.com/news/special-reports/state-125/article57020613.html|title=Scoppe: 1993 restructuring law gave SC governors their first hint of authority|website=thestate|language=en|access-date=2019-05-31}}</ref> According to ''The State,'' the main newspaper of [[Columbia, South Carolina]], "the legislation condensed 75 agencies into 17, and let the governor hire and fire the directors of 11.<ref name=":2" /> The legislature maintained its power over education, road construction, and environmental regulations while giving the governor power over agencies that imprisoned people, managed healthcare, and collected taxes for the state. South Carolina is still considered a "legislative state" with the General Assembly maintaining a large proportion of power over the governor's appointments as well as the ability to appoint judges.<ref>{{Cite web|url=https://scpolicycouncil.org/research/the-legislative-state-how-the-general-assembly-controls-south-carolinas-government|title=The "Legislative State:" How the General Assembly Controls South Carolina's Government|date=2017-10-25|website=The South Carolina Policy Council|language=en|access-date=2019-06-01}}</ref>
On February 23, 1993, a bill was introduced to the [[South Carolina House of Representatives]] to restructure the state government.<ref>{{Cite web|url=https://www.scstatehouse.gov/billsearch.php?billnumbers=3546&session=110&summary=B|title=South Carolina Legislature Online - Bill Search by Bill Number|website=www.scstatehouse.gov|access-date=2019-06-01|archive-date=2019-06-04|archive-url=https://web.archive.org/web/20190604101222/https://www.scstatehouse.gov/billsearch.php?billnumbers=3546&session=110&summary=B|url-status=live}}</ref> Up to this point, the governor of South Carolina had largely been a ceremonial figurehead with limited power. However, after Operation Lost Trust, the General Assembly voted to give the governor what was essentially a "third" of its power.<ref name=":2">{{Cite web|url=https://www.thestate.com/news/special-reports/state-125/article57020613.html|title=Scoppe: 1993 restructuring law gave SC governors their first hint of authority|website=thestate|language=en|access-date=2019-05-31|archive-date=2019-05-31|archive-url=https://web.archive.org/web/20190531205522/https://www.thestate.com/news/special-reports/state-125/article57020613.html|url-status=live}}</ref> According to ''[[The State (newspaper)|The State]],'' the main newspaper of [[Columbia, South Carolina]], “the legislation condensed 75 agencies into 17, and let the governor hire and fire the directors of 11.”<ref name=":2" /> The legislature maintained its power over education, road construction, and environmental regulations, while giving the governor power over agencies that imprisoned people, managed healthcare, and collected taxes for the state. South Carolina is still considered a “legislative state,” with the General Assembly maintaining a large proportion of power over the governor’s appointments, as well as the ability to appoint judges.<ref>{{Cite web|url=https://scpolicycouncil.org/research/the-legislative-state-how-the-general-assembly-controls-south-carolinas-government|title=The "Legislative State:" How the General Assembly Controls South Carolina's Government|date=2017-10-25|website=The South Carolina Policy Council|language=en|access-date=2019-06-01|archive-date=2019-06-01|archive-url=https://web.archive.org/web/20190601214858/https://scpolicycouncil.org/research/the-legislative-state-how-the-general-assembly-controls-south-carolinas-government|url-status=live}}</ref>


== References ==
== See also ==
{{Reflist}}


* ''[[South Carolina Statehouse corruption investigation]]''
⚫
[[Category:Federal Bureau of Investigation]]

== External links ==
[https://cdm16817.contentdm.oclc.org/digital/collection/p16817coll21/id/9752 Image, FBI Agents involved in Operation Lost Trust, 1990]

== References ==
{{Reflist}}<ref>{{Cite web |date=23 November 1998 |title=U.S. v. Derrick, 163 F.3d 799 (4th Cir. 1998) |url=https://casetext.com/case/us-v-derrick |url-status=live |archive-url=https://archive.today/20231118163317/https://casetext.com/case/us-v-derrick |archive-date=18 November 2023 |access-date=18 November 2023 |website=Casetext}}</ref>
⚫
[[Category:Federal Bureau of Investigation operations]]
[[Category:Political scandals in South Carolina]]
[[Category:Political scandals in South Carolina]]
[[Category:History of South Carolina]]
[[Category:History of South Carolina]]

Latest revision as of 21:16, 15 December 2024

The South Carolina State House.

Operation Lost Trust was the name of an FBI investigation into the South Carolina General Assembly from 1989 to 1999. By the end of the investigation, seventeen members of the South Carolina General Assembly were arrested for bribery, extortion, or drug use. Operation Lost Trust is often considered the greatest political scandal in the history of the state of South Carolina. It directly influenced the passing of South Carolina's Ethics Reform Act of 1991, and led to the restructuring of the state government in 1993. In its wake, the once-dominant South Carolina Democratic Party was weakened as a political party, and the Republican Party emerged as a viable political entity in the state.

Investigation

[edit]

In 1989, the Federal Bureau of Investigation began investigating the South Carolina General Assembly after the narcotics arrest of Ron L. Cobb, a lobbyist and former Democratic[1] member of the South Carolina House of Representatives. The FBI supplied Cobb with a boat located in Hilton Head Island, South Carolina and an office in Atlanta for the purposes of misleading state lawmakers into believing that he represented the Alpha Group, a fake organization seeking support for a bill legalizing dog and horse-track betting. Cobb was instructed to bribe lawmakers with campaign contributions in return for their support for the bill.[2]

In July 1990, a grand jury subpoenaed the campaign finance records of all 170 members of the General Assembly, consequently revealing the existence of the investigation.[3] The investigators were looking for self-reported disclosures of the in-total $30,000 that investigators doled out to tempt lawmakers during the election season.[4] Five legislators, including State Representative Robert A. Kohn (R),[3] were initially indicted for failure to disclose the payments and violating the Hobbs Act. Kohn later agreed to cooperate with prosecutors. While the four indicted members of the General Assembly in the House of Representatives were suspended from official duties, the lone senator, William Richard Lee (R),[3] was able to continue his work in the South Carolina Senate.

Those convicted included:[5][6]

  1. Jack Rogers (D) — State Representative and Speaker Pro Temp from the 54th District; was accused of extorting money from lobbyists. He pled guilty to a charge of racketeering, and was sentenced to 45 months in prison. (1991)[7][8]
  2. Kenneth E. Bailey Sr. (D) — State Representative of Eutawville; accepted a $500 cash bribe, and was convicted of conspiracy.[9][10][11]
  3. Larry Blanding (D) — State Representative from Sumter. After several trials and reversals, Blanding was found guilty of conspiracy and extortion, and sentenced to 37 months.[12][13]
  4. Robert B. Brown (D) — State Representative from Charleston; pled guilty to bribery.[14][15]
  5. Paul Wayne Derrick (R) — State Representative of Lexington; was found guilty of conspiracy and extortion for accepting $1,000 in bribes. He was sentenced to 34 months.[16][17]
  6. Ennis M. Fant (D) — State Representative from Greenville; pled guilty to conspiracy and extortion, received 20 months.[12][18]
  7. Jim Faber (D) — State Representative from Richland County; pled guilty to accepting a 41,000 bribe.[19][20]
  8. James C. Tee Ferguson (D) — State Representative and Circuit Judge of Spartanburg; guilty of extortion and drug charges, and sentenced to 33 months.[21][22]
  9. Benjamin J. Gordon Jr. (D) — State Representative of Kingstree; found guilty of conspiracy and extortion, but died during appeal.[12][23][24][25]
  10. Robert Albert Kohn (R) — State Senator from Charleston; pled guilty to conspiracy and bribery, and served seven months in prison.[12][26]
  11. Rick Lee (R) — State Senator from Boiling Springs; pled guilty to accepting a $2,000 bribe. He was sentenced to six months at a halfway house.[27][28]
  12. Thomas Limehouse (D) — State Representative from Dorchester; pled guilty to charges of conspiring to accept a bribe and tampering with a witness. Sentenced to 20 months.[29][30]
  13. John Charles “Jack” Lindsay (D) — State Senator from Marlboro; found guilty in the Lost Trust investigation, but died during appeals.[31][32]
  14. Jefferson Marion Long Jr. (D) — State Senator from Horry; guilty to $42,000 bribe.[23][33][34]
  15. Frank McBride (D) — State Representative from Columbia; pled guilty to accepting $1000 in bribes.[9][35][20]
  16. Luther L Taylor, Jr. (D) — State Representative from Columbia; pled guilty to conspiracy and bribery, and was sentenced to 80 months in prison, but died during appeals.[36][37]
  17. Daniel E. Winstead (R) — State Representative from Charleston; pled guilty to accepting bribes and obstruction of justice.[38]

At that time, South Carolina required that state lawmakers report any campaign contributions they received to the respective ethics committee of their governing body. After the initial five indictments made the news, Governor Carroll A. Campbell Jr. (R) and Speaker of the House Robert Sheheen (D) both stated that reforms to this system were in order.[3] Out of the 28 indictments in total (including indicted lobbyists), only the indictment of Representative Timothy Castles Wilkes (D)[39] resulted in a not guilty verdict.[40] The South Carolina Legislative Black Caucus raised concerns about the large number of African American lawmakers charged during the investigation.[41]

Aftermath

[edit]

Ethics Reform Act of 1991

[edit]

In response to Operation Lost Trust, state lawmakers passed the Ethics Reform Act of 1991. This act made it illegal for lobbyists to give any gift, including campaign contributions, to any serving member of the government. It also capped donations from lobbying firms (lobbyists themselves had to be uninvolved in the decision) to $1,000 when it was previously unlimited. The act also regulated how businesses and organizations which employ lobbyists could entertain lawmakers, ensuring that the entertainment was conducted only in formal groups.[42]

Strengthening the governorship

[edit]

On February 23, 1993, a bill was introduced to the South Carolina House of Representatives to restructure the state government.[43] Up to this point, the governor of South Carolina had largely been a ceremonial figurehead with limited power. However, after Operation Lost Trust, the General Assembly voted to give the governor what was essentially a "third" of its power.[44] According to The State, the main newspaper of Columbia, South Carolina, “the legislation condensed 75 agencies into 17, and let the governor hire and fire the directors of 11.”[44] The legislature maintained its power over education, road construction, and environmental regulations, while giving the governor power over agencies that imprisoned people, managed healthcare, and collected taxes for the state. South Carolina is still considered a “legislative state,” with the General Assembly maintaining a large proportion of power over the governor’s appointments, as well as the ability to appoint judges.[45]

See also

[edit]
[edit]

Image, FBI Agents involved in Operation Lost Trust, 1990

References

[edit]
  1. ^ "Former Representative Ron L. Cobb". South Carolina Legislature Online. Archived from the original on 29 October 2023. Retrieved 29 October 2023.
  2. ^ "Statehouse Report – HISTORY: Operation Lost Trust". Archived from the original on 2019-05-31. Retrieved 2019-05-31.
  3. ^ a b c d Smothers, Ronald (1990-08-25). "5 South Carolina Lawmakers Indicted in Corruption Inquiry". The New York Times. ISSN 0362-4331. Archived from the original on 2019-05-31. Retrieved 2019-05-31.
  4. ^ Kropf, Schuyler (4 July 2010). "Lost Trust shook state 20 years ago". Post and Courier. Archived from the original on 2019-05-31. Retrieved 2019-05-31.
  5. ^ "Operation Lost Trust". South Carolina Encyclopedia. Archived from the original on 15 October 2016. Retrieved 2023-06-23.
  6. ^ "Operation Lost Trust". Archived from the original on 2021-07-27. Retrieved 2021-04-23.
  7. ^ AP (January 5, 1991). "2 More Indictments Charge Corruption In South Carolina". The New York Times. Archived from the original on April 23, 2021. Retrieved April 23, 2021.
  8. ^ United States Court of Appeals, Fourth District (September 29, 1992). "United States v. John I. Rogers, III, 976 F.2d 728, 4th Cir. (1992)". scribd.com. Archived from the original on February 24, 2019. Retrieved April 23, 2021.
  9. ^ a b "United States of America, Plaintiff-appellee, v. Kenneth e. Bailey, Defendant-appellant, 990 F.2d 119 (4th Cir. 1993)". Archived from the original on 2021-04-23. Retrieved 2021-04-23.
  10. ^ "HOUSE JOURNAL for Dec. 6, 1988 - South Carolina Legislature Online". Archived from the original on 2020-10-07. Retrieved 2021-04-23.
  11. ^ Jurist, Open; Circuit, Fourth (December 1992). "990 F2d 119 United States v. E Bailey". Federal Reporter. Second Series (990): 119. Archived from the original on 2022-01-30. Retrieved 2021-04-23.
  12. ^ a b c d "U.S. v. Taylor, 956 F. Supp. 622 | Casetext Search + Citator". casetext.com. Archived from the original on 2021-04-23. Retrieved 2021-04-23.
  13. ^ United States v. Derrick, 163 F.3d 799 (4th Cir. 1998)
  14. ^ "Former S.C. State Senator Pleads Guilty In Bribery Case". AP NEWS. 10 September 1990. Archived from the original on 23 April 2021. Retrieved 2023-06-23.
  15. ^ Julia, M. Klein (9 September 1990). "Bribery Allegations Rock S.c. Legislature". philly.com. Archived from the original on 25 December 2015. Retrieved 23 June 2023.
  16. ^ S.C. STING Derrick found guilty The State Archived 2019-06-01 at the Wayback Machine, May 12, 1991, | [1] Archived 2021-04-23 at the Wayback Machine
  17. ^ "United States of America, Plaintiff-appellee, v. Paul Wayne Derrick, Defendant-appellant, 16 F.3d 412 (4th Cir. 1994)". Justia Law. 3 February 1994. Archived from the original on 18 November 2023. Retrieved 22 June 2023.
  18. ^ "FILE PHOTO Ennis Fant ...a Baptist minister Fant gets 20 months for conspiracy". Spartanburg Herald Journal. Archived from the original on 2 June 2017. Retrieved 2023-06-23.
  19. ^ WILSON, JILL (March 1, 1991). "Two Ex-S.C. Legislators Plead Guilty To Accepting Bribes In FBI Sting". AP NEWS. Archived from the original on 23 April 2021. Retrieved 2023-06-23.
  20. ^ a b "The Item - Google News Archive Search". news.google.com. Archived from the original on 2021-04-23. Retrieved 2021-04-23.
  21. ^ "Ex-Judge Is Sentenced For Bribery and Drugs". The New York Times. Associated Press. 11 August 1992. ISSN 0362-4331. Archived from the original on 18 November 2023. Retrieved 23 June 2023.
  22. ^ "United States of America, Plaintiff-appellee, v. James C. Ferguson, A/K/A Tee, Defendant-appellant.united States of America, Plaintiff-appellee, v. James C. Ferguson, A/K/A Tee, Defendant-appellant, 4 F.3d 986 (4th Cir. 1993)". Archived from the original on 2017-06-08. Retrieved 2021-04-23.
  23. ^ a b "U.S. V. Derrick, 163 F.3d 799 | Casetext Search + Citator". Archived from the original on 2021-04-23. Retrieved 2021-04-23.
  24. ^ "1997–98 Bill 3656: The Honorable Benjamin J. Gordon, Jr., Resolutions — South Carolina Legislature Online". www.scstatehouse.gov. 13 March 1997. Archived from the original on 18 November 2023. Retrieved 23 June 2023.
  25. ^ Appeals, United States Court of; Circuit, Fourth (December 1, 1992). "990 F2d 119 United States v. E Bailey". F2d (990): 119. Archived from the original on January 30, 2022. Retrieved June 22, 2023 – via openjurist.org. {{cite journal}}: Cite journal requires |journal= (help)
  26. ^ "From the archives: Ron Cobb five years after Lost Trust | The State". 2021-04-23. Archived from the original on 2021-04-23. Retrieved 2023-06-22.
  27. ^ "Former S.C. State Senator Pleads Guilty in Bribery Case". Associated Press. Archived from the original on 2021-04-23. Retrieved 2021-04-23.
  28. ^ "Indictment charges Lee with taking $2,000 bribe". www.goupstate.com. Associated Press. Aug 25, 1990. Archived from the original on April 23, 2021. Retrieved April 23, 2021.
  29. ^ BRUCE SMITH (December 7, 1990). "Former State Lawmaker Pleads Guilty in Statehouse Scandal". www.apnews.com. Associated Press. Archived from the original on April 23, 2021. Retrieved April 23, 2021.
  30. ^ "The Item - Google News Archive Search". news.google.com. Archived from the original on 2021-04-23. Retrieved 2021-04-23.
  31. ^ "Former State Lawmaker Pleads Guilty in Statehouse Scandal". Associated Press. Archived from the original on 2021-04-23. Retrieved 2021-04-23.
  32. ^ "1991-92 Bill 518: Lindsay, Senator John C. "Jack" - South Carolina Legislature Online". www.scstatehouse.gov. Retrieved 2023-06-23.
  33. ^ Ex-Sen. Long, Lost Trust Figure, Dies, The Post and Courier, Apr. 28, 2003.
  34. ^ "Ex-state senator involved in Operation Lost Trust dies". www.goupstate.com. Associated Press. Apr 28, 2003.
  35. ^ JILL WILSON (March 1, 1991). "Two Ex-S.C. Legislators Plead Guilty To Accepting Bribes In FBI Sting". www.apnews.com. Archived from the original on April 23, 2021. Retrieved April 23, 2021.
  36. ^ "State Lawmaker Found Guilty in a South Carolina Bribery Case". New York Times. October 26, 1990. Archived from the original on April 24, 2021. Retrieved April 23, 2021.
  37. ^ "Inquirer.com: Philadelphia local news, sports, jobs, cars, homes". inquirer. Archived from the original on 2016-03-04. Retrieved 2023-06-22.
  38. ^ "LAWMAKERS 5 make pleas, released on bonds". Archived from the original on 2021-04-23. Retrieved 2021-04-23.
  39. ^ "Five Men Indicted in S.C. Statehouse Investigation". Greensboro News & Record. 23 May 1991. Archived from the original on 30 October 2023. Retrieved 30 October 2023.
  40. ^ "Operation Lost Trust: The Tim Wilkes Story". ABC Columbia. 2014-11-21. Archived from the original on 2019-05-31. Retrieved 2019-05-31.
  41. ^ "'LOST TRUST' Fant pleads guilty". GoUpstate. Retrieved 2019-05-31.
  42. ^ Cindi, Ross Scoppe. "What Operation Lost Trust meant to South Carolina". thestate. Archived from the original on 2019-05-31. Retrieved 2019-05-31.
  43. ^ "South Carolina Legislature Online - Bill Search by Bill Number". www.scstatehouse.gov. Archived from the original on 2019-06-04. Retrieved 2019-06-01.
  44. ^ a b "Scoppe: 1993 restructuring law gave SC governors their first hint of authority". thestate. Archived from the original on 2019-05-31. Retrieved 2019-05-31.
  45. ^ "The "Legislative State:" How the General Assembly Controls South Carolina's Government". The South Carolina Policy Council. 2017-10-25. Archived from the original on 2019-06-01. Retrieved 2019-06-01.

[1]

  1. ^ "U.S. v. Derrick, 163 F.3d 799 (4th Cir. 1998)". Casetext. 23 November 1998. Archived from the original on 18 November 2023. Retrieved 18 November 2023.
Retrieved from "https://en.wikipedia.org/enwiki/w/index.php?title=Operation_Lost_Trust&oldid=1263296540"