Tag: Arrigo Carotti

Council Splits Vote Eldridge Survives for Now

Horry County Council voted 6-6 on the question of whether to fire administrator Chris Eldridge during its special meeting on the question Tuesday afternoon.

Eldridge survived, but barely and it is obvious he does not have the support of a majority of council going forward. Even the six who voted no on the question of firing Eldridge did not appear to be acting out of a conviction that he needed to stay.

The opposition was led by council member Dennis DiSabato who has said he will never support anything by that SOB Gardner. DiSabato spent most of his time attacking Gardner including accusing him of being involved in a ‘pay to play scheme’ even though SLED and the Fifteenth Circuit Solicitor have already said nothing violating the law happened.

Council members Bill Howard, Cam Crawford and Tyler Servant said nothing in support of Eldridge. That’s four out of six who were basically mute on Eldridge while council members Harold Worley and Gary Loftus gave lukewarm support to Eldridge.

What was apparent from comments and questions from council during the two hour meeting was that six members of council firmly believe Eldridge acted unprofessionally and inappropriately in calling for a SLED investigation on new Chairman Johnny Gardner.

The SLED findings and conclusion of Fifteenth Circuit Solicitor Jimmy Richardson were that nothing inappropriate happened when Gardner and his business partner Luke Barefoot met with EDC executives Sandy Davis and Sherri Steele.

Davis and Steele both told SLED the very same thing when they were interviewed during the investigation process.

Council member Danny Hardee said it best when he told Eldridge he (Eldridge) was the only one who thought ‘he heard something’ in the recording of the conversation.

As the record shows, Eldridge already had his mind made up as to his own set of facts when he sent an email to EDC board chairman Neyle Wilson on December 12, 2018 even though Eldridge did not listen to the recording until December 19, 2019.

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Recording Confirms No Extortion Attempt

A recording that Horry County Administrator Chris Eldridge and Horry County Attorney Arrigo Carotti used as a centerpiece of evidence for their allegations of wrongdoing by Horry County Council Chairman Johnny Gardner proves the allegations were entirely false.

The full recording of the lunch meeting between Gardner, his business partner Luke Barefoot and Myrtle Beach Regional Economic Development Corporation (EDC) executives Sandy Davis and Sherri Steele became entered the public arena yesterday.

The recording was supposedly the ‘smoking gun’ that would prove the Eldridge and Carotti tale of, as Eldridge described in an email, “asking for thousands of dollars to be funneled” to Donald Smith is nowhere to be heard.

What the administrator and attorney believed (hoped?) would add credence to their allegations actually proved how entirely false they were.

I listened to the entire one hour and seven minute recording. Generally it reveals a pleasant lunch meeting whose purpose was to familiarize the incoming council chairman with the workings of the EDC, its current efforts to recruit jobs and the uses of its budget.

There is an approximately four minute segment in which Barefoot and Davis discuss the possibility of contracting with Smith for public relations work for the EDC. Davis explained the procedure for submitting a proposal to the EDC and Barefoot said he understood the EDC procedures. Davis said she would be open to receiving a proposal.

At no time was there ever any threat or other effort to compel Davis to do anything and no mention of payment of thousands of dollars to Smith. Gardner said nothing during that segment of the conversation.

Not ones to let little things like facts get in the way of their efforts to discredit Gardner, Carotti authored a five-page memo laying out the case, which relied entirely on hearsay ‘to the best of Carotti’s recollection’, and Eldridge reported an alleged extortion attempt by Gardner to SLED.

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SLED Said NO! Chris and Arrigo Gotta Go

Fifteenth Circuit Solicitor Jimmy Richardson issued a press release and report Thursday evening which included a letter to SLED stating, “Based on the information you uncovered and provided in your report of this investigation, there is no credible evidence of extortion by Luther “Luke” Barefoot or Johnny Gardner…”

A link to the entire 41 page report appears at the end of this story.

Richardson’s report brings to a close an investigation into an alleged extortion attempt by Horry County Council Chairman Johnny Gardner and his business partner Luke Barefoot.

The allegations were reported to SLED by Horry County Administrator Chris Eldridge and supported by a five-page memo authored by Horry County Attorney Arrigo Carotti.

The allegations centered around comments made, or more appropriately stated not made, during a business meeting at Rivertown Bistro in Conway. Present at the meeting were Gardner, Barefoot, Myrtle Beach Regional Economic Corporation President Sandy Davis and MBREDC Director of Investor Relations Sherri Steele. The meeting was audio recorded and the recording was a key piece of evidence in determining what had not taken place – namely any extortion attempt.

As the Richardson release stated, “The recording of the conversation is consistent in form and content with what Davis, Steele, Barefoot and Gardner described to you in their individual interviews about what was discussed and the manner in which it was discussed.”

The report goes on, “President Davis never told anyone that she felt pressured. President Davis never told anyone that they tried to extort money.”

Director Steele said, “We never felt threatened or felt like we had to hire them or pay them any money.”

All four participants reported that it was “a positive meeting.”

As the report states, “Davis and Steele repeatedly state they were not threatened or extorted and they are the sole eyewitnesses to the event, or non-event as the case may be.”

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SLED Report in Review by Solicitor

The SLED investigation report into allegations of wrongdoing by Horry County Council Chairman Johnny Gardner was delivered to the solicitor’s office late Thursday afternoon, Fifteenth Circuit Solicitor Jimmy Richardson confirmed to Grand Strand Daily today.

Richardson will receive a full briefing from SLED agents before releasing a statement about his conclusions, probably Monday.

The report included videotapes of all interviews conducted by SLED in the investigation, a complete copy of the recording of a November 30, 2018 meeting between Sandy Davis and Sherri Steele of the Myrtle Beach Regional Economic Development Corporation and Gardner and his business partner Luke Barefoot and other items related to the investigation.

According to Richardson, the report was subjected to peer review before its release, which means an agent not involved in the initial investigation checked the report for accuracy in its findings.

The attempt to smear Gardner was initiated by Horry County Administrator Chris Eldridge and Horry County Attorney Arrigo Carotti with a memo sent by Carotti, with the full concurrence of Eldridge, to council members after 6 p.m. December 19, 2018.

Before 6 a.m. December 20, 2018, the memo and a story connecting the words “Gardner” and “extortion” appeared on the website of a Columbia media outlet. The media outlet is the same one that attempted to smear Nikki Haley with allegations of illicit affairs when she was running for governor in 2010.

The less than 12 hours, evening and night hours, is much too tight for anything other than a pre-planned leak of the Carotti memo, labeled “Attorney Client Privileged”, and the accompanying sensationalized story.

Access to the memo was initially limited to the 12 members of council in December 2018 plus Eldridge and Carotti. Who leaked the memo? I can think of only three of the original 14 who could possibly think they would benefit from such a leak.

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The Dirty Tricks Campaign Against Johnny Gardner

We live in a political climate where dirty tricks are used to create rumors to smear those seen as enemies by the rumormongers.

These rumors, lies are what they really are, come in all shapes and sizes, but they have the same thing in common – to discredit the person they are aimed against.

How well they work depends on the gullibility of the audience they are targeted to influence.

Some of the more ridiculous rumors about public figures we have heard include:

Justice Brett Kavanaugh as a young man attended parties where women were routinely gang raped. That one pushed the envelope too far to be believed.

In late 2015 when Donald Trump had established himself as a serious contender for the Republican nomination, a fake story said he told a magazine in 1998 if he ever ran for president it would be as a Republican because “they’re the dumbest group of voters in the country” and that “he could lie and they’d still eat it up.” Rather than hurt him with Republican voters, Trump went on to win the nomination and election.

In the 2000 primary season, John McCain was accused of fathering an illegitimate black child, which was actually a child from Bangladesh that McCain and his wife adopted. This one stuck a bit with South Carolina voters as George Bush came from behind to win the South Carolina primary and go on to be elected president.

Rumors were circulated about Nikki Haley having multiple affairs during the 2010 primary season, which the voters disregarded. In fact, the rumors were so poorly presented that Haley vaulted from fourth place to win the Republican nomination and go on to twice being elected South Carolina Governor.

More recently, Horry County citizens have been presented with a rumor about county council chairman Johnny Gardner. Interestingly, the Columbia website that played a prominent part in publishing a leaked memo about the fictitious plot from county attorney Arrigo Carotti, written in conjunction with administrator Chris Eldridge, was the same website that played a prominent part in the Haley rumors.

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Was There Malfeasance in Sending the Carotti Memo to SLED?

Much of the county, especially the citizens who voted for Johnny Gardner, are eagerly awaiting a report from SLED exonerating Gardner from the allegations made against him by Horry County Administrator Chris Eldridge and Horry County Attorney Arrigo Carotti.

The SLED investigation into the allegations was called for by Eldridge after Carotti authored a five-page email memo outlining these supposed allegations based solely on hearsay and rumor.

If I had written a story about the chairman, the same story related in the Carotti memo, with the same lack of solid documentation and using only the same rumor, hearsay and gossip used in the memo as my sources, I could justifiably be sued for libel, defamation and reckless disregard for the truth.

And with the rapidity that the memo was leaked and appeared in print, I’m not sure that is not exactly what was done with the reporting to SLED as cover to try and build a whistleblower defense.

But allegations based on rumor and hearsay are specifically excluded from the whistleblower defense. Therefore, it looks like Carotti and Eldridge are far out on a limb while sawing it off behind them.

One definition of malfeasance is the performance by a public official of an act that is legally unjustified. I submit making allegations of wrongdoing with nothing more than rumor, hearsay and gossip to back them up, reporting those allegations to SLED and having them leaked to the media are legally unjustified acts. Therefore, it is not a stretch to say that both Eldridge and Carotti may have committed malfeasance by acts so irresponsible they should be fired.

It is a felony in South Carolina to make a false report to law enforcement officials.

I would further submit that any council member who told Eldridge to send the matter to SLED, as Eldridge claimed in a letter to council, and any council member who tries to shield Eldridge and Carotti from discipline by attempting to justify their acts may also be committing malfeasance because there is nothing legally justified about sending a memo to SLED based entirely on rumor, hearsay and gossip.

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Blowing the Wrong Whistle

As the county awaits the report of the SLED investigation into alleged wrongdoing by county Chairman Johnny Gardner, initiated by County Administrator Chris Eldridge and County Attorney Arrigo Carotti, it appears those two are attempting to couch a defense for their actions in the pose of whistleblowers.

This has been obvious since the January 4, 2019 special meeting of council when both appeared at the meeting with personal attorneys.

The Eldridge letter presented to council members after the special meeting specifically speaks of him being a “target of retaliation” if he is either fired or suspended by council – a classic whistleblower defense.

There is one major fault with this defense. Whistleblowing protections are not extended to those who report potential wrongdoing based on unsubstantiated hearsay and rumors.

According to documents written by Carotti and Eldridge, unsubstantiated hearsay and rumors are all they had to justify the imaginary plot they had developed in their minds.

In its simplest form, that plot goes this way – Gardner campaign manager Luke Barefoot and Gardner, by extension because he accompanied Barefoot to one meeting held on November 30, 2018, with two Myrtle Beach Regional Economic Development Corporation (EDC) officials, attempted to have the EDC pay Gardner campaign consultant Donald Smith so that a rumored negative story about the EDC would not appear in Grand Strand Daily. (Total Rumor)

On or about December 5, 2018, Carotti and Eldridge learned that a tape recording of that meeting existed and, apparently, believed it contained a “smoking gun.”

On December 12, 2018, Eldridge wrote an email to Neyle Wilson, Chairman of the Board of the EDC, sharing “conversation points” (hearsay) EDC CEO Sandy Davis allegedly told to Carotti about that meeting. In the email, Eldridge complained that the EDC had “an unwillingness to share the taped recording” even though the email is part of an email string in which Wilson twice (December 7 and December 12) offered to allow Eldridge to listen to the recording.

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The Eldridge and Carotti Version of Extortion – ‘He Said, He Said, She Said, He Said’

Horry County Administrator Chris Eldridge and Horry County Attorney Arrigo Carotti were left off the hook last Friday when Horry County Council quickly voted to adjourn a meeting rather than drill down on why the two embarrassed the county by calling for a SLED investigation of a rather ridiculous version of events allegedly involving council Chairman Johnny Gardner.

Using alleged here is really a stretch as fantasy much closer describes a five-page email Carotti authored and Eldridge said, in a letter delivered to council members after the meeting, “accurately summarized” what transpired.

If Eldridge and Carotti are to be believed, we have to accept that Gardner attempted to have the Myrtle Beach Regional Economic Development Corporation (EDC) funnel “thousands of dollars” (Eldridge words) to Donald Smith (Gardner’s campaign consultant), somehow using the Beach Ball Classic “for political cover” (Carotti words). The EDC board is filled with many of the most prominent and politically connected business people, educators and government officials in the county.

By Carotti’s admission in his email, he began writing the email on the 14th relating events that began on (or before) December 5th. Carotti completed his email on December 19th sending it to Eldridge and the 12 members of county council at that time. The entire email was leaked and published in a Columbia media outlet within 12 hours of its completion.

There are supposedly only 14 people who had initial access to this email. At least one of those was the source of its initial leak. Find the leaker among Eldridge, Carotti and the 12 members of council in December and you will discover not only the reason for the leak, but also the reason the email was written in the first place. The motivation will be political not legal, moral or ethical.

The email contains information Carotti allegedly heard from Davis about conversations she allegedly had with Barefoot. In other words, ‘he said, she said, he said.’ In Eldridge’s case, most of his knowledge was gained from Carotti’s retelling of those conversations, or another way, ’he said, he said, she said, he said.’

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Searching for A False Narrative

False narratives appear to have become the standard emanating from some county government officials pursuing personal agendas over the past few years.

The latest is the five-page narrative crafted by county attorney Arrigo Carotti, with some input from county administrator Chris Eldridge, which attempted to place new council chairman Johnny Gardner involved in a nefarious plot that never happened.

Local editorial cartoonist Ed Wilson captured the essence of what went on between Eldridge and Carotti perfectly in the editorial cartoon accompanying this article. Once again, Wilson has demonstrated that a picture is worth 1,000 words.

The two examined snippets of conversations either or both had been party to with Myrtle Beach Regional Economic Development Corporation CEO Sandy Davis to attempt to find incriminating evidence against Gardner. As Wilson depicts, the search was quite literally to make a mountain out of a molehill.

Eldridge used this bit of creative writing on the part of Carotti as an excuse to call in SLED to investigate. The narrative was also conveniently leaked to a Columbia media outlet to sensationalize the narrative.

This is not the first time a false narrative has been used as a county tactic to attempt to create a certain image in media.

One only has to read the county’s response and counterclaims, as amended, in the Angie Jones lawsuit against Eldridge and the county to view another example.

As I quoted from the amended response and counterclaims in the Jones lawsuit, the county said, “If Jones has any alleged “issues” with regard to staffing and competently and efficiently performing her duties as the Horry County Treasurer, such issues are solely as a result of her mismanagement of her offices and her own decisions, including her decisions to drive out and remove and replace competent long-term employees with friends and political supporters lacking in relevant experience.”

The bit about doing favors for friends and political supporters is strikingly similar to allegations against Gardner.

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Gardner Victory Top Story in 2018

Johnny Gardner’s primary victory over incumbent Mark Lazarus to become the Chairman of Horry County Council beginning tomorrow is the top story for 2018.

As the incumbent, Lazarus was endorsed by a number of elected officials in the county including U. S. Rep. Tom Rice, most of the county legislative delegation members, his 11 co-members of county council and most of the county’s mayors. He was also supported by most of the Myrtle Beach Chamber crowd and those others in the county who consider themselves power brokers.

Gardner was supported by a vast majority of the employees of Horry County Government including endorsements by the public safety fraternal organizations Horry County Professional Firefighter Local 4345 of the International Association of Firefighters and Coastal Carolina Fraternal Order of Police Lodge 12. He was also supported by a majority of those voters often overlooked by Horry County politicos and power brokers – the average citizens.

The 2018 election cycle was a change cycle in Horry County. Three out of four incumbents who received serious challenges in either the primaries or general election lost and the fourth squeaked by with just over a 30 vote victory margin.

Supporting the concept that Gardner’s victory was the most watched of those four are events that have happened since the June 12th primary.

Horry County voters supported an advisory referendum on changing the state impact fee law to require new development to pay for more of its costs by a nearly three out of four margin (73% to 27%).

Developers rushed to get a number of rezonings approved in the last six months of the year, but not without some significant defeats along the way.

County staff “discovered” that more of the approximately $41 million of hospitality tax revenue could be used for areas such as public safety, infrastructure and recreation than they had previously acknowledged.

Lazarus led a major push to have council pass a resolution approving a contract with the S. C. Department of Transportation for rights of way acquisition, engineering and construction of I-73 in Horry County. Part of that resolution designates $25 million per year of hospitality tax revenue to go into a special road fund for the I-73 project but the resolution is not a hard appropriation of tax dollars.

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