SC Supreme Court reprimands, fines Myrtle Beach lawyer over campaign donations
The South Carolina Supreme Court on Wednesday issued a reprimand and a fine for Myrtle Beach attorney Robert “Shep” Guyton for his involvement in a 2009 effort to funnel thousands of dollars to local political candidates via limited liability corporations, or LLCs.
The reprimand and $5,000 fine comes after the state Ethics Commission fined Guyton $33,000 for the donations in 2019.
The court wrote that it issued the reprimand as part of a consent agreement over lawyer ethics.
“In the agreement, (Guyton) admits misconduct and consents to the imposition of a public reprimand and a fine,” the court wrote in Wednesday’s filing. “We accept the agreement, publicly reprimand (Guyton), and impose a fine.”
Neither Guyton nor his attorney, James Emerson Smith, returned messages seeking comment for this story.
The reprimand details Guyton’s donations in 2009, in which the attorney asked his bookkeeper for 148 cashiers checks that he used to donate to political candidates via various LLCs. Guyton gave a total of $183,000 via 14 LLCs to 11 candidates.
The late Myrtle Beach Mayor John Rhoades, Myrtle Beach City Council members William Gray, Charles Martino and Randal Wallace were among the recipients, according to records from the state Ethics Commission. Candidates for state legislature seats, including Thad Viers, Nelson Hardwick and Alan Clemmons also received donations from Guyton, those records showed.
State law limits donations to local candidates to $1,000-per-candidate-per-cycle. The law limits donations to state candidates to $3,500-per-candidate-per-cycle.
Guyton distributed the checks via the Myrtle Beach Area Chamber of Commerce, which has since changed its policies about accepting campaign cash. Guyton was reported to the Ethics Commission in 2010 and fined in 2019.
“After the cashier’s checks were prepared by the bank, one of (Guyton’s) employees delivered them to the Myrtle Beach Area Chamber of Commerce office,” the state Supreme Court wrote in the reprimand. “The checks were then distributed to the candidates by the MBACC chairman.”
Meghan Walker, the executive director of the state Ethics Commission, explained to The Sun News recently that state law allows corporations, like LLCs, to give to political candidates as “individuals,” meaning such giving is legal.
She noted, though, that companies involved in political donations must have “separate and distinct” interests.
Guyton was fined in part because the LLCs he used didn’t have their own funds.
“(Guyton) admits he personally funded these political contributions, as most of the LLCs had little or no money of their own,” the court wrote. “(Guyton) further admits he had previously provided these candidates the maximum political campaign contribution allowed, and as such, the subsequent contributions were excessive as a matter of law.”
In addition to paying a $5,000 fine and court costs, the court ordered Guyton to complete courses from the Legal Ethics and Practice Program Ethics School within nine months. The court said Guyton has 30 days to pay the fine.
This story was originally published April 13, 2022 at 12:43 PM.
