Ethics panel asked to dismiss complaint against SC treasurer

State ethics watchdogs will decide within 30 days whether to dismiss or pursue charges that S.C. Treasurer Curtis Loftis violated ethics laws by using his office to help a long-time friend and business associate get a job representing the state in a lawsuit.

Attorney Gregory Harris asked the S.C. State Ethics Commission on Tuesday to dismiss the case against Loftis, saying the Republican had not violated the law when he asked S.C. Attorney General Alan Wilson to approve the hiring of Michael Montgomery, Loftis’ long-time friend, fraternity brother, personal attorney and business associate.

Loftis did not disclose to Wilson his ties with Montgomery, who was hired to represent the treasurer’s office in a lawsuit and was paid $2 million when the lawsuit was settled.

But attorney Christian Stegmaier, hired by the Ethics Commission to prosecute the case, said the case should go on because Loftis should have disclosed his relationship with Montgomery.

State law prohibits public officials from knowingly using their office “to obtain an economic interest for himself, a family member, an individual with whom he is associated, or a business with which he is associated.”

The two lawyers disagreed over their interpretation of state ethics laws and whether Loftis and Montgomery’s work together on a nonprofit created an association that required Loftis to tell Wilson about their relationship before Montgomery was hired.

Montgomery was a board member and did legal work for Saluda Charitable Foundation, a nonprofit Loftis founded that does charitable work in the Ukraine, Bolivia and Haiti. According to his website, Loftis is the nonprofit’s sole benefactor.

Harris told the Ethics Commission that Loftis did not need to disclose to Wilson Montgomery’s work for the board of his charity because Montgomery never received any money for his work on the nonprofit’s board.

But Stegmaier disagreed, saying that payment was not necessary in establishing an association that should have been disclosed.

The charity, Stegmaier also noted, dedicated a building in Montgomery’s honor. According to the charity’s website, the building is a dining hall in the New Hope Village in a Ukrainian village.

The Ethics Commission said it would issue a written decision within 30 days.

This story was originally published June 28, 2016 at 4:28 PM with the headline "Ethics panel asked to dismiss complaint against SC treasurer."