Jeffrey McWhorter, the former President and CEO of Palmetto Railways, has admitted to conspiracy to commit honest services fraud. The charges stem from actions during his tenure at the company.
According to investigators, McWhorter facilitated a connection between a known co-conspirator, identified as T.B., and a Texas-based company. This introduction was aimed at securing a contract for T.B.'s work in Charleston.
Before the contract's award, discussions took place involving McWhorter, T.B., and an employee from the Texas company, known as Employee 1. They discussed payments to McWhorter and Employee 1 if T.B.'s company received the contract.
It was agreed that T.B. would send funds to Employee 1. Evidence showed that money was wired to an account under Employee 1’s wife’s business name. Employee 1 then paid McWhorter his share in cash.
The investigation revealed that these payments could have led to financial harm for the Texas company involved. Records show that T.B. transferred at least $400,000 to Employee 1 in Texas, with McWhorter receiving at least $90,000 in cash.
McWhorter's guilty plea was accepted by United States District Judge David C. Norton. He now faces up to five years in federal prison, along with potential fines of up to $250,000 and restitution. A sentencing report will be reviewed before final sentencing.
The FBI Columbia Field Office conducted the investigation into this case, with Assistant U.S. Attorney Amy Bower handling prosecution duties.