Wednesday, Oct. 28, 2009

BOOST ups ante with Myrtle Beach chamber

A letter from Business Owners Organized to Support Tourism has escalated the fight between the group and the Myrtle Beach Chamber of Commerce, with BOOST threatening to sue the chamber, saying it has violated federal anti-racketeering law.

The Racketeer Influenced and Corrupt Organizations Act, or RICO, is a law originally intended for prosecuting the Mafia and other organized crime groups. It allows extended criminal penalties and civil lawsuits for acts performed as part of an ongoing criminal organization.

BOOST has alleged that many of 24 $1,000 checks given to each of the four Myrtle Beach City Council incumbents, and other regional lawmakers, were given by shell companies posing as limited liability corporations as a way for the chamber to "pay back" local candidates and state legislators who supported the 1 percent tourism tax in Myrtle Beach. The tax, implemented in August, is expected to generate between $14 million and $18 million a year for the chamber for out-of-market tourism promotion.

"That's a lot of money that appears seemingly overnight. We have been asking questions, and no one is answering,'' said BOOST spokesman Tom Herron. ``Now they are trying to deflect the questions, saying we're bad people asking bad questions. We believe the public deserves to know.

"Any financial transaction that has been structured to avoid a state or federal law is a reporting violation that can easily trigger a RICO predicate," Herron said after consulting with BOOST's attorney, who declined to comment himself. BOOST was organized by a group of business owners angered by the city's motorcycle-related ordinances.

He and BOOST threatened the chamber with the countersuit following a series of events.

BOOST has questioned the legality of chamber board President Brant Branham gathering donations, many from the LLCs, even though the state Ethics Commission found nothing illegal about the donations. Branham said he raised money for candidates he supports, but not through the chamber.

Companies and individuals are allowed to donate to political campaigns, and often do. But several of the checks were cashier's checks, which Herron said is unusual, and the total of the $324,000 in donations to all the politicians - including some not up for re-election this year - seemed suspect as well.

Herron is a political consultant who has represented some of the people who received the questioned contributions this year, including Myrtle Beach City Councilman Randal Wallace, Sen. Ray Cleary, Rep. Tracy Edge and Rep. Thad Viers.

"We want to know who gave the money and why," Heron said.

Branham and Guyton's attorney, Butch Bowers, held a press conference last week to denounce BOOST's "defamatory allegations" as "scurrilous" and "sad," and said he sent the group and Herron a cease-and-desist notice.

Herron this week said he and BOOST received an e-mail from Bowers, but not an official judge's order to cease, and said BOOST will not stop questioning the chamber's activities.

Contacted Tuesday afternoon, Herron said Bowers' threats angered him and BOOST, and "if they want to play this game, we'll see you and raise you. We're asking legitimate questions."

His letter to Bowers, which is posted on BOOST's Web site, goes on to say that if Bowers files a suit, BOOST will countersue the chamber under the RICO Act, and counterclaim under an Old English common law writ still valid in South Carolina to get "the nearly $200 million in taxpayer funds paid or to be paid to the Myrtle Beach Chamber."

Chamber President and CEO Brad Dean said Bowers does not represent the chamber, and he referred questions to the chamber's attorney, Franklin Daniels.

"We have read the various correspondences published by BOOST ... ," Daniels wrote in an e-mail response to questions Tuesday afternoon. "The accusations and allegations contained therein are both factually inaccurate and unfounded. The Chamber is a legally recognized 501(c)(6) entity and for over 70 years, the Chamber has been a member-driven organization consisting of over 2,500 various businesses along the greater Grand Strand area and an active participant in the growth of tourism and this community.

"Therefore, we take these types of published statements and allegations very seriously. The Chamber stands behind its past and present actions and, as always, is willing to be held accountable for its use of any public funds that it has received and invested in the creation of increased tourism and general promotion of the Greater Grand Strand area."

Bowers spoke at Tuesday's chamber board meeting, after receiving a copy of Herron's letter.

He reiterated that Branham simply collected campaign funds from other people who wanted to donate and delivered the checks to the candidates as an individual, not as a chamber representative, but even if he had, that still would have been legal because no public funds were used.

Herron said in his letter that BOOST would subpoena those involved including "the Chamber of Commerce, every member, lobbyist and employee of the Chamber and its Board, the LLCs, their owners and managers, and the city council and its Mayor.''

Bowers said the most serious allegation was BOOST's assertion that the contributions were quid pro quo for the tourism tax.

In addition to the letter to Bowers, Herron also released a statement saying he and BOOST had nothing to do with a campaign flyer that surfaced last week that accuses Dean's wife of being an illegal immigrant [she is from Puerto Rico, a U.S. territory] and hurls an anti-female invective at her.

Herron said he had a call from a TV reporter over the weekend "who said people were saying all fingers were pointing at Tom Herron and BOOST" as the source of the flier. Herron said he never saw the flier.

He said he and BOOST were disgusted by the flier.

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