Guilty pleas in Five Rivers embezzlement scandal

The trial for a mother and daughter charged with stealing $100,000 from the Five Rivers Community Development Corporation never got started Monday after the women pleaded guilty to the charges Monday.

Circuit court judge Steven H. John sentenced the women to five years probation and to pay restitution at the hearing in Georgetown.

John ordered Beulah White to spend the next five years on probation and to repay $3,500 after she loaned a friend the money, but never repaid it.

Dayo White will also serve five years probation and will repay more than $52,000 from the money she stole from Five Rivers.

The women have 90 days before they must make the first payment on the restitution, John ordered Monday.

John ruled earlier this month that many of the subpoenas issued by 15th Circuit solicitor Greg Hembree’s office were “defective” and ruled prosecutors could not use evidence gathered with the subpoenas against the founders of the Five Rivers Community Development Corporation.

It was because of the “illegal” subpoenas that South Carolina assistant attorney general Curtis Pauling told the judge the deal was reached, but Pauling did not say how much of the evidence in the case rested on the subpoenas from Hembree’s office.

The judge did uphold some of the evidence in the case gathered with other subpoenas, and decided to withhold a decision on evidence collected involving credit card accounts used by Beulah and Dayo White, the Five Rivers founders.

Judge John ruled Hembree’s office violated privacy provisions of the South Carolina state constitution by issuing subpoenas that included the White’s social security numbers and dates of birth to obtain the White’s personal bank account records.

Prosecutors charged Beulah Priest White and her daughter, Dayo White-Smith with 15 felony counts that include embezzlement, criminal conspiracy, and breach of trust.

The judge’s ruling stated the White’s had no privacy protections in accounts that belonged to Fiver Rivers, defense attorney Charlie Condon told News13.

The White’s defense attorneys argued that Hembree issued illegal subpoenas in collecting evidence against the women in the case where prosecutors said the Whites stole $100,000 from the non-profit group that was created to provide low-income housing.

Condon and Hemphill Pride argued that Hembree’s office illegally stamped the Horry County and Georgetown County clerk of court’s names on 28 subpoenas.

Some of the documents had Clerk of Court Melanie Huggins’ name stamped on printed subpoenas from Georgetown County.

Alma White is the clerk of Georgetown County.

“The apparent fictitious act of stamping a clerk of court’s name on an out-of-county subpoena; there had to be some knowledge there by the state of South Carolina that what they were doing was plain wrong, but it may rise to the level of misconduct in office, which would be a criminal act,” Condon said of the practice.

Hembree said he’s never had the signature stamp issue challenged in his more than 20 years prosecuting cases.

Alma White and Huggins testified Thursday that the solicitor’s office stamping subpoenas was a long-standing practice in the two counties; something that happened long before both women were elected to the clerk’s office, both testified in a hearing on Feb. 12.

“Whether our use of it as an investigative tool is appropriate is a legitimate question, but I can tell you this, it was a practice that was a long standing practice that’s used by many; most of the circuit’s throughout this state for many, many years,” Hembree testified.

Huggins testified that on Feb. 6, Hembree’s office surrendered 31 signature stamps to the clerk’s office in Horry County and returned another two stamps to the Georgetown County clerk.

Hembree said he’s ended the practice within his office.

The judge’s ruling has state wide implications as far as the way South Carolina solicitors use subpoenas in gathering evidence in criminal cases, according to Condon.

Hembree admitted during testimony Feb. 12 there was no formal training given to his assistant solicitors in issuing subpoenas and Hembree said he didn’t know the number of signature stamps his office was authorized to use.

State law gives solicitors the authority to issue subpoenas in criminal cases only after an arrest is made and formal charges brought against the suspect, according to Condon.

Hembree’s investigator, Stephen Brown, testified the first subpoena he stamped and issued in the Fiver Rivers investigation was on Nov. 14, 2008.

The Whites were arrested and charged with the crimes nine months later.

Condon did not know how much of the state’s case depended on the evidence John dismissed.