Recent Posts

Lawsuit Filed Against Bucksport Plantation Marina Operators

A lawsuit with racial discrimination overtones was recently filed against the Bucksport Plantation Marina and RV Resort, ED LLC and Jeffrey Weeks individually for an incident that took place on May 28, 2017.

The lawsuit was filed by Melinda Knowles, attorney representing Plaintiff Clarence Curtis Hendrix, in the 15th Circuit Court on September 1, 2017.

What makes this lawsuit noteworthy is Bucksport Plantation Marina and RV Resort is owned by Grand Strand Water and Sewer Authority (GSWSA), a public agency that was created by the S.C. General Assembly through the passage of Act 337 of 1971.

According to the lawsuit, “ED LLC maintains an exclusive leasehold interest in the real property that houses the Resort and, upon information and belief, either employs Weeks as manager of the Resort or operates a partnership with Weeks in the operation of the Resort.”

According to the lawsuit, Hendrix, who is African-American, was hired by “The Waccamaw Getaway Music Festival” that was held over Memorial Day Weekend 2017 at the Bucksport Marina venue.

The incident involving Weeks and Hendrix, which led to the lawsuit, is described in the complaint, “During the early morning hours of Sunday, May 28, 2017 Plaintiff and the other staff members were engaged in driving an intoxicated Festival attendee back to his campsite. Weeks, driving a large heavy-duty black truck, drove up behind the courtesy shuttle at a high rate of speed. When it became clear that the truck was not decreasing in speed, Plaintiff’s co-staff member attempted to evade the truck and avoid a collision by hugging the shoulder of the narrow dirt road. Ultimately, the truck driven by Weeks forced the shuttle off the road with all three occupants onboard. The shuttle struck a ditch and became lodged with two of its wheels suspended in the air. The crash and the force of the impact threw Plaintiff off the shuttle. Simultaneous with the shuttle’s wreck, Weeks brought his heavy-duty truck to a rapid, skidding stop next to the disabled golf cart. Weeks then exited his truck, snatched the key out of the disabled shuttle, and verbally accosted Plaintiff in the presence of the Festival attendee.”

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Storms Near as Myrtle Beach City Elections Filing Closes

It seems appropriate that filing closes for the upcoming Myrtle Beach city elections as the area awaits the possibility of tropical storm conditions.

This election cycle has already been stormy with more to come.

The incumbents running for reelection, Mayor John Rhodes and council members Randal Wallace and Mike Lowder, have received justified criticism of decisions made by council over the last several years.

I was looking back on stories from the election cycle two years ago. In one, I quoted an op-ed column by Mande Wilkes written three weeks before the 2015 election.

Wilkes criticized the “Asian fetish” of Myrtle Beach City Council while stifling local business investors with “the bizarre zoning laws, the oppressive signing ordinances, the climbing licensing fees, and the restrictive parking policies.”

“All of these rules add up to a suffocating environment for businesses, and that’s why Highway 17 is littered with empty storefronts and dilapidated buildings,” Wilkes wrote.

While the “Asian fetish” appears to be in the midst of a severe ‘crash and burn’, many of Wilkes’ other criticisms have not only not been addressed, but instead have been added to.

Shootings on Ocean Boulevard, indeed throughout the city, have been on the rise and city council responded with barricades along a section of Ocean Boulevard it apparently wants to redevelop.

The city surreptitiously bought up property in the Superblock area and, when it was exposed, threatened remaining private landholders with the use of eminent domain to acquire their properties.

The publicly stated reason for this land acquisition by the city – a new building for Chapin Memorial Library, a private-public partnership entity, and a new building for the totally private Children’s Museum.

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No Safety Violations Proven Against Skydive Myrtle Beach

It is now apparent that Skydive Myrtle Beach was shut down from operating at Grand Strand Airport on the basis of safety allegations that were never investigated, much less proved.

For whatever reason, county officials (council members, staff or some combination thereof) decided they wanted to shut down Skydive Myrtle Beach (SDMB). The only way they could do that and not violate Federal Aviation Administration (FAA) Grant Assurances was to claim safety violations.

And this they did, sort of.

Horry County Department of Airports (HCDA) staff and Robinson Aviation employees, who were contracted with HCDA to operate the Grand Strand Airport control tower, created 112 “Unusual Incident Reports” (UIR) of SDMB alleged safety violations over a nearly two year period.

HCDP sent these UIR’s to the Federal Aviation Administration as documentation of safety violations. According to responses to FOIA requests by both Horry County and the FAA, none of these alleged incidents was ever investigated by HCDA and only one, number 86 on the compilation record, was investigated by the FAA.

Horry County Attorney Arrigo Carotti responses to two FOIA requests: 

“These records are provided in an abundance of caution, in that each may or may not demonstrate violation by Skydive Myrtle Beach of Horry County Department of Airports Minimum Standards, as that assessment has not been undertaken.” 

And

“Enforcement was held in abeyance due to pending litigation.” 

No investigation of any of the incidents was ever conducted by HCDA or other Horry County agencies.

The FAA found NO VIOLATION in the case of number 86, which occurred on May 31, 2015.

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Another Twist in the Skydive Myrtle Beach Controversy

Another interesting twist has appeared related to the Skydive Myrtle Beach controversy with Horry County over the county’s closing of the Skydive Myrtle Beach business.

Nearly two years ago, the county used a Director’s Determination by the Federal Aviation Administration to close the landing zone for skydivers at Grand Strand Airport and evict Skydive Myrtle Beach from a hangar at that airport.

The Director’s Determination was based on 112 alleged safety violations committed by Skydive Myrtle Beach, which were documented and reported by Horry County Department of Airports personnel and/or Robinson Aviation personnel who are contracted by the county to staff the control tower at Grand Strand Airport.

In a recent post about the ongoing controversy, we quoted a letter by Horry County Attorney Arrigo Carotti that backed away from calling the documents proof of safety violations by SDMB.

Carotti’s letter, which was included with a response to a FOIA request for documents related to SDMB safety violations, stated, in part, the documents provided “may or may not demonstrate violation by Skydive Myrtle Beach of Horry County Department of Airports Minimum Standards, as that assessment has not been undertaken.”

Several days after the story was posted, the following was contained in an email to at least one county council member:

“On Aug 15, 2017, at 11:24 AM, Carotti, Arrigo wrote:

The misrepresentation of facts and the law has been ongoing on the part of Mr. Holly, misguided bloggers, and Holly surrogates for several years now, involving universally unsuccessful litigation by Holly, and pending litigation against the FAA, the State of South Carolina, Horry County, officials and employees. There have been no new admissions, the FAA’s and County’s sound positions in the matter remaining the same. 

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Horry County Reverses Story on Skydive Myrtle Beach Alleged Violations

Nearly two years after evicting Skydive Myrtle Beach from Grand Strand Airport for, allegedly, committing numerous safety violations, Horry County now won’t claim the skydiving business committed any violations.

In a cover letter providing 126 documents responding to a Freedom of Information Act request for all public documents associated with Skydive Myrtle Beach safety violations, Horry County Attorney Arrigo Carotti stated in part, “These records are provided in an abundance of caution, in that each may or may not demonstrate violation by Skydive Myrtle Beach of Horry County Department of Airports Minimum Standards, as that assessment has not been undertaken.” (See full letter below)

What is astounding about that statement is that two years ago the exact same documents were provided to both the Federal Aviation Administration and S.C. Fifteenth Circuit Court as proof of safety violations by Skydive Myrtle Beach.

In 2014, Skydive Myrtle Beach lodged a complaint with the Federal Aviation Administration against Horry County Department of Airports alleging discriminatory actions against Skydive Myrtle Beach by HCDA.

In response, Horry County Department of Airports reported to the Federal Aviation Administration that Skydive Myrtle Beach was the subject of 112 alleged safety violations (contained in the 126 pages of documents) while conducting business at Grand Strand Airport.

On October 7, 2015, the FAA issued a Director’s Determination Report, authored by Randall Fiertz, the FAA Director of Airport Compliance and Management Analysis, in response to Holly’s original complaint, supposedly basing the report on those safety violations.

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Myrtle Beach City Election Issues

Less than three weeks remain before filing officially opens for the upcoming Myrtle Beach city elections.

Already a number of people have emerged to announce their intention to run against the four incumbents up for reelection. While I’m sure there will be a large field of challengers, we won’t know exactly who is in the race until filing closes.

In the meantime, there are some interesting dynamics developing for this year’s election.

In the past few months, council has drawn criticism for the threatened use of eminent domain to take control of several properties in the Superblock after secretly purchasing approximately 10 other properties in that area.

After being exposed, the city announced a plan to redevelop the area with a new, $10 million building to, reportedly, house Chapin Memorial Library and a new Children’s Museum.

There are questions whether eminent domain taking of a property can be used for such a purpose and whether $10 million of taxpayer money is best spent on this project when public safety needs, among others, are critical at this time.

Shootings on Ocean Boulevard and in other parts of the city highlight the amount of violence that has infringed on Myrtle Beach streets. After the Father’s Day weekend incident during which eight people were wounded on Ocean Boulevard, the city placed barricades on one section of Ocean Boulevard, ostensibly for crowd control, but in front of retail stores and restaurants which occupy an area the city would also like to see be redeveloped.

The businesses in the area of the barricades reported drops in sales of 30-60 percent from previous years numbers.

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U.S. Attorney Enters Skydive Myrtle Beach Lawsuit

The U.S. Attorney for the South Carolina District has notified the Florence Federal District Court that she will be representing the individual federal defendants in a federal tort claims lawsuit brought by Skydive Myrtle Beach Inc.

The notification is included in a motion, signed by Interim U.S. Attorney for S.C. Beth Drake, to the court requesting an extension in filing a response just as time for a response was running out.

Skydive Myrtle Beach named Horry County, Horry County Council, the Federal Aviation Administration and a number of officials with all agencies individually as defendants.

The lawsuit claims Skydive Myrtle Beach was illegally closed when Horry County Council and its Department of Airports worked with the FAA to deprive Skydive Myrtle Beach of its constitutional right to due process and equal protection under the Fourteenth Amendment of the U.S. Constitution.

In 2014, Skydive Myrtle Beach lodged a complaint with the Federal Aviation Administration against Horry County Department of Airports alleging discriminatory actions against Skydive Myrtle Beach by HCDA.

In response, Horry County Department of Airports reported to the Federal Aviation Administration that Skydive Myrtle Beach was the subject of 112 alleged safety violations while conducting business at Grand Strand Airport.

In October 2015, the FAA issued a 73 page Director’s Determination Report supposedly basing the report on those safety violations. Horry County subsequently used this report as an excuse to shut down Skydive Myrtle Beach operations at Grand Strand Airport.

Skydiving is an approved aviation activity at all airports receiving FAA grants, according to FAA guidelines. Grand Strand Airport and the Horry County Department of Airports receive FAA grants on a routine basis.

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Dan Liu Fires Back at Founders Group International Partner

(Pictured above, Dan Liu (left) and Nick Dou in happier times)

Dan Liu, majority partner of the Founders Group International entities, fired back hard at minority partner Nick Dou in answering a complaint in a lawsuit filed by Dou against Liu, three Chinese corporations and the many limited liability companies that make up the Founders Group International holdings.

According to Dou’s complaint, the three Chinese corporations were 90 percent owners of the Founders Group properties and Dou was 10 percent owner. Liu was the exclusive authorized agent in the U.S. for the Chinese corporations.

In his lawsuit, Dou alleges Liu was stripping assets out of the corporation for personal and other uses. The suit alleges breach of contract, fraud and conversion by Liu.

Additionally, Dou asks for a full accounting of corporate assets as well as a temporary restraining order directing Liu “shall not divert, remove, alienate, convert, encumber or otherwise manipulate any corporate assets of FGI or any of the other FGI Entities for his personal use or benefit, until such time as the claims raised in this action have either been resolved by this Court, settled and/or withdrawn by the Parties to this action…”

The complaint also states, “Plaintiff Nick Dou is informed and believes that the assets and property of FGI and the affiliated FGI Entities are at grave risk and danger of loss, and of material injury and impairment, at the hands of Defendant Dan Liu, if such property and assets are left under the exclusive control of Defendant Dan Liu.”

Dou’s complaint also states, “Upon information and belief, on or about March 27, 2017, the Nanjing District Attorney’s office for the Jiangsu Province of the PRC issued public statements that it seeks the arrest of Defendant Dan Liu for suspicion of investment fraud and “absorbing public money.”

A copy of this public statement release was submitted as an exhibit with Dou’s complaint.

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Proper Expenditure of Hospitality Tax Revenue

A suggestion for the use of hospitality tax revenue was made at Tuesday night’s Horry County Council meeting that makes too much sense to ignore.

In a discussion of New Business, council member Paul Prince spoke about the poor conditions of many roads in the county as well as some need for advance planning in adding additional lanes to Hwy 90, Hwy 905 and roads extending off of those two.

Prince suggested meeting with the Horry County legislative delegation and governor Henry McMaster to find some funds to help with these roads.

Council member Harold Worley suggested spending the “two and one-half percent” on the roads. Worley’s reference was to the county’s hospitality tax.

Governments supposedly collect taxes in order to provide public goods and services. Think here roads, bridges, police, fire and mass education.

Hospitality tax is a little different in that state law requires hospitality tax revenue to be spent on tourism related expenses.

When hospitality tax was first approved by county voters in a county wide referendum, one percent of the total was designated to the government jurisdiction in which it is collected while one and one-half percent was designated to pay off bonds for Ride I projects.

The Ride I bonds are expected to be paid off on or before 2019. The one and one-half percent designated to those bonds brings in revenue of approximately $38 million per year to Horry County.

While it may take a little tweaking of state law to spend all of that revenue on the county road system, it is hard to argue that tourists do not use virtually all of the roads in that system. In addition the tax revenue could be spent on necessities such as public safety.

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New Insights Into Founders Group International Lawsuit

(Pictured above, Dan Liu (left) and Nick Dou)

Investigation into the lawsuit filed in the 15th Judicial Circuit by Nick Dou against Dan Liu and three Chinese corporations over properties held collectively by Founders Group International continues to bring new revelations to the surface.

According to a source familiar with the lawsuit, Dan Liu was served locally with the lawsuit in recent days.

Liu’s peer to peer lending company, which did business in the Peoples Republic of China (PRC) under both its Mandarin name “Yiqian Funding” and its English name “Easy Richness”, raised the money that was used to buy golf courses and other property in Horry and Georgetown counties.

According to records in Horry County, Liu and Dou established approximately 16 limited liability corporations to hold the various properties purchased in Horry and Georgetown counties. Collectively, the llc’s are known locally as Founders Group International.

According to court documents, Dou holds 10 percent interest in Founders Group International and the associated llc’s. The three Chinese corporations, for which Liu acts as exclusive U.S. agent, hold the remaining 90 percent of the llc’s.

According to sources familiar with Yiqian Funding, the company raised a total of approximately 10 billion Yuan ($1.5 billion) from approximately 60,000 investors over a six year period. Estimates are that at least $300 million was taken out of the PRC for investment in the U.S.

Sources with knowledge of Yiqian said what was purchased was not really important to Liu. His main goal was getting the money beyond the borders of the PRC.

For that purpose, Liu established the three Chinese corporations, apparently nothing more than shell corporations, to receive the investor money from Yiqian Funding to use for purchases in the U.S.

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