Former Palmetto Railways CEO pleads guilty to fraud in conspiracy case
(AP Photo/Matt Rourke, File)
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(WCIV) — The Former President and CEO of Palmetto Railways has plead guilty to fraud, according to a release from the United States Department of Justice.
Jeffrey McWhorter, 63, of Awendaw, plead guilty to conspiracy to commit honest services fraud, which he reportedly committed during his time as President of Palmetto Railways.
They state that evidence obtained during the investigation revealed that McWhorter introduced a known co- conspirator, called T.B. in the release, to a company headquartered in Texas. According to evidence, T.B. hoped that McWhorter’s introduction would facilitate him being awarded a contract for work in the Charleston area by the Texas company.
Prior to the contract being awarded to the Texas Company, McWhorter, T.B. and a third unnamed employee of the Texas company, held meetings about a potential payout for McWhorter and the employee, should T.B. be awarded the contract.
The document states that McWhorter and the coconspirators agreed that T.B. would send money to the employee, and evidence revealed that T.B. did in fact wire the money to a bank account was in the employee’s wife’s business name. After the amount was paid, the agreement reportedly was that the employee would then pay McWhorter his portion in cash.
Documents showed that T.B. ultimately wired at least $400,000 to the unnamed employee in Texas and subsequently McWhorter received at least $90,000 of this in cash.
McWhorter is facing a maximum penalty of five in federal prison, a fine of up to $250,000, restitution, and three years of supervision to follow the term of imprisonment.
