Viers sentenced in money laundering case

A federal judge on Tuesday sentenced former state lawmaker Thad Viers to three years and one month in prison for his role in a money laundering scheme.

Judge Bruce Howe Hendricks also ordered the 37-year-old Viers to pay $875,000 in restitution to an insurance company Viers had helped a former law client hide assets from.

Viers is to turn himself in to U.S. Marshals at 10 a.m. Friday. After he is released from prison, he must serve three years of probation as well as undergo anger management counseling and a substance abuse treatment program.

Tuesday's decision marked a precipitous fall for the one-time frontrunner for the 7th Congressional District seat. Viers did not speak with reporters outside the Florence courthouse after the hearing, though he did address Hendricks before she handed down her sentence.

"I love South Carolina," he said. "I'm a proud American and I'm ashamed of what I've done. ... I was wrong. Period."

Although his lawyer initially said Viers would fight the criminal accusations against him, the former lawmaker faced more than a dozen charges in connection with alleged racketeering-related financial transactions and lying to the IRS. Had he been convicted of those charges, Viers faced up to 145 years in prison.

In April, Viers pleaded guilty to money laundering, which can carry up to 10 years in prison and/or a $250,000 fine. All other counts were dismissed as part of a deal with prosecutors.

The case against Viers stemmed from allegations that he tried to help law firm client Marlon Weaver hide assets from an insurance company that was trying to collect money on a construction bond.

Weaver pleaded guilty to a felony money laundering charge and in June was sentenced to 12 months and one day in prison. He was also ordered to pay $1.2 million in restitution and serve three years of supervised release. Prosecutors asked that his sentence be reduced because of his assistance in other cases.

Weaver admitted he tried to hide money he made from the 2010 sale of Bucksport Marina from an insurance company that had provided a $6 million bond for a road paving project his company was supposed to complete.

Among the assets Weaver pledged as security for the bond was his one-fifth interest in the marina.

Investigators say Weaver back-dated documents to make it appear as if he had transferred his interest in the marina to his daughters prior to his company's default on the road paving project.

Prosecutors say Viers knew Weaver was trying to hide the money and helped him form a limited liability corporation that purportedly transferred Weaver's interest in the marina to his daughters.

An indictment states Viers also made 12 withdrawals totaling $524,000 from a trust account he set up and gave that money to Weaver. Prosecutors contend Viers knew that money came from Weaver's illegal activity related to the marina sale.

They also say Viers lied to an IRS investigator when he said he was not aware that Weaver was trying to hide assets from the insurance company.

During Tuesday's hearing, Viers’ attorney, Trey Cockrell, tried to bolster his client’s case for leniency, arguing that Viers was simply acting at the direction of Weaver.

"He played a minor role in this action," Cockrell said.

Prosecutors disputed that notion, contending that Viers used his skills as an attorney to set up an LLC for Weaver and used his position as a legislator as an excuse to put off depositions in a civil case related to the scheme.

"There's a little more to the story than money going in and out of that account," said Assistant U.S. Attorney Bill Day, calling Viers "an integral part" of the conspiracy.

Cockrell tried to portray Viers as a novice attorney who was too trusting of his client and lacked an adviser to guide him. He also insisted Viers didn't profit from the scheme.

"He was a baby lawyer," Cockrell said.

Viers' two prior criminal convictions, both of which involved harassment, also came up during the hearing, though Cockrell urged the court not to overemphasize them. One case, he said, involved Viers' failed marriage.

"He was calling his wife's boyfriend," Cockrell said.

Before sentencing, Cockrell filed more than 100 letters of support with the court, including messages from Horry County Council members, prosecutors, the president of the S.C. Fraternal Order of Police, a Myrtle Beach city councilman and the state lawmaker who now holds Viers’ former seat.

More than 20 people came to Tuesday's hearing in support of Viers. Six spoke to the judge on his behalf, describing him as contrite, kind and deserving of mercy.

"I cannot think of a finer person who cares more about people than Thad does," said Myrtle Beach City Councilman Randal Wallace, one of Viers' longtime friends.

Viers choked up while reading an apology in court.

"As a lawyer, I should have known better," he said. "As a man, I must take responsibility for my actions."

Viers served in the S.C. House of Representatives from 2003-12. He represented District 68, which includes Socastee. A graduate of Socastee High School and the University of South Carolina law school, Viers was a frontrunner for the open U.S. House District 7 seat in 2012 before withdrawing from the race when he was accused of stalking a former girlfriend.

During Tuesday's hearing, Judge Hendricks agreed with the prosecution's characterization of Viers. She said the sentence is appropriate because Viers misused his position as a lawyer and as a public official.

"He did not respect the law," she said. "He used the law to commit this crime."

This story was originally published October 20, 2015 at 4:08 PM with the headline "Viers sentenced in money laundering case."