At the Myrtle Beach City Council meeting today, MyrtleBeachSC News was informed that the Myrtle Beach Area Chamber of Commerce has been sued.
LAKE AGENCY, SC, LLC is suing the Myrtle Beach Area Chamber of Commerce for surreptitious political contributions. Lake Agency, SC, LLC is owned by Brian Sweeney. Sweeney recently ran for office against Val Guest for the S.C. District 106 House of Representatives seat.
In the key components of this suit, Lake Agency states
MISUSE OF TAXPAYER MONIES THROUGH SURREPTITIOUS POLITICAL CONTRIBUTIONS
- Defendant [The Myrtle Beach Area Chamber of Commerce] has utilized prior employees to set up separate companies for all of its infrastructure and operations. These separate companies are awarded contracts without any bidding process and are paid far more than the market value of the purported services.
- Defendant [The Myrtle Beach Area Chamber of Commerce] utilizes these illusory entities to funnel money into political campaigns of its favored candidates, prop up and exclusively support spoiler candidates to protect its favored incumbents, and systematically violate the campaign finance laws of the State of South Carolina.
- Defendant [The Myrtle Beach Area Chamber of Commerce] issues public monies to political consultants for purposes unrelated to marketing or tourism promotion.
- Defendant utilizes competing political consultants to manage a controlled opposition for the political candidate favored by Defendant.
- Defendant utilizes political operatives to solicit monies to purchase political endorsements
from elected officials and others with influence over registered voters, all in violation of
South Carolina law. - On at least two occasions, agents of Defendant have solicited citizens to run for office
against the favored candidate in a political race. The sole purpose of using these illusory
candidates is to split the opposition vote or discourage a legitimate candidate from running
against the favored candidate. - In utilizing these illusory candidates, Defendant and/or its agents pay for all campaign costs
without making the required campaign finance disclosures.
FACT CHECKING THIS LAWSUIT
The lawsuit makes assumptions that are not yet proven by substantiated email threads nor provided through foundational evidence. These facts may be produced later, during the trial, but our news team has not been made aware that such emails and evidence currently exists.
As to item 40, it is true that in the past, MBACC used former employees to form organizations like Visibility and Conversions. In a recent conversation with a key MBACC staff member, however, it was made clear that some of these former “employee organized” businesses are no longer used.
As to item 41: If the previously used businesses are no longer used by MBACC, profits paid to businesses like Visibility and Conversions do not exist. As such, they can not then be funneled to preferred candidates. Some of these former businesses do continue to operate, and, as such should be looked into.
As to item 42: S.C. Political Consultant Walter Whetsell received $24,935 in TDF funding. Walter Whetsell is the leading political operative in the State of S.C. He represents practically all of the MBACC preferred candidates including: Myrtle Beach Mayor Brenda Bethune, S.C. District 61 Representative Carla Schuessler, Former Horry County Councilman Mark Lazarus, S.C. Representative Val Guest, The South Carolina House Republicans in Columbia, and a host of other favored MBACC business member related candidates.
As to items 43 and 45: It is true that underperforming 3rd tier candidates chose to run in races where they did not have the expertise nor adequate funding for equal participation. It is also true that these candidates caused runoff elections. One case that clearly comes to mind is the John Gallman vs. Luke Rankin Senate Race. Did MBACC encouraged the third candidate campaign of Carter Smith? Smith’s entry into the campaign did create a run off situation, with Smith garnering enough votes to create the necessary runoff.
In the case of Brian Sweeny vs Val Guest, a third candidate campaign also existed. That race also went into a two week runoff. Val Guest won that election by approximately 300 votes.
Howard Barnard used Donald Smith, of Lucky Dog Promotions, as his political consultant in that same District 106 House of Representatives run. As we have recently pointed out, Donald Smith plays all sides to the middle. We have documented that Lucky Dog was paid by MBACC from TDF funding for the Beach Ball Classic.
Donald Smith of Luck Dog Promotions works both sides of the street.
Additionally, as we reported last Fall: Smith considers himself a “King Maker”. He states privately that he works to get anti special interest candidates elected. Special interest candidates are supported by the Myrtle Beach Area Chamber of Commerce. However, per Smith’s disclosures, MBACC paid Lucky Dog TV Productions $51,750 in TDF funding in 2020 alone. MBACC paid Lucky Dog $39,600 in TDF funding in 2021. Lucky Dog was responsible for providing political campaign support for Howard Barnard. Was MBACC somewhere in the weeds?
Smith represents Autry Benton in the upcoming District 33 Senate Race against incumbent Luke Rankin.
As to item 44: It is true that “MBACC minded members” do individually pool their funding in support of Grand Strand Business Alliance favored candidates. The Grand Strand Business Alliance is the PAC arm of MBACC.
The donors are typically a collection of Who’s Who in the City of Myrtle Beach and around Horry County, including members of the Coastal Carolina Association of Realtors. Does MBACC coordinate this? Such will have to be proven in a court room. In a courtroom what you know, and what you can prove are often at odds.
As to item 46: In utilizing these illusory candidates, Defendant and/or its agents pay for all campaign costs without making the required campaign finance disclosures. This is completely unknown to our news agency. If this turns out to be accurate, changes should be immediately made to those tax dollars being provided to MBACC.
WHAT THE LAWSUIT DOESN’T ADDRESS
The Myrtle Beach Area Chamber of Commerce receives approximately $54 million annually in total tax gifts from tourists and even our own local readers in Horry County.
MBACC then sells components of this tax gift to hoteliers (property managers) across the Grand Strand at the tune of $22,000 per property.
The TDF and other public tax monies have clearly designated ways these funds can be spent. They must be spent for out of market advertising.
HOWEVER, when the tax gift is sold to the more than 100 hoteliers across the Grand Strand, those public dollars are then converted into private MBACC dollars that amount to between $2.2 million and $4.2 million annually.
THERE ARE NO LAWS, RULES, NOR REGULATIONS ON HOW THOSE NOW CONVERTED PRIVATE FUNDS CAN BE SPENT.
Are a portion of those millions going towards political activities? An example of such would be a legislative party thrown for all S.C. Senators and S.C. House members in Columbia, S.C.
Whose money is funding actities such as those? Is it only GSBA money being spent? No one is asking.
What does MBACC do with the converted private dollars in the millions (which amounts to legalized money laundering)? Once again no S.C. legislator nor any S.C. Senator is asking.
The funds, once converted, are private and how they are spent can not be scrutinized by the public at large.
LAWSUIT AS FILED
MBACC Sued by Lake Agency by MyrtleBeachSC news