Lawyers seek trial delay in former Latta mayor’s federal case

FLORENCE — Lawyers in the federal case against a former Latta mayor and his wife have asked the case be continued until the next court term.

Lenneau Berry has pleaded not guilty to federal charges alleging he collected disability benefits while he was being paid by the town.

Berry and his wife, Sheila Berry, were charged in August in a superseding indictment with theft of government funds. Federal officials said she aided and abetted her husband, who was indicted earlier this year, in fraudulently collecting disability benefits while he served as mayor.

Appearing before U.S. District Court Judge Bryan Harwell onThursday morning, Assistant U.S. Attorney Brad Parham said the trial would likely take three days.

Harwell said he would take the request for a continuance under advisement.

Both Lenneau and Shelia Berry are free on bond.

Federal agents allege that while Lenneau Berry was collecting Social Security disability payments from 2004 to 2008, he was also receiving disqualifying salary income as the mayor of Latta, and from his employment at a tax service.

Agents charge that Lenneau Berry directed that his city and tax service paychecks be issued in his wife’s name so that he could continue to collect about $129,000 in disability benefits from the Social Security Administration.

Harold J. Kornblut, 56, also of Latta was indicted along with Berry in January because federal agents said he knowingly issued the tax service check to further the fraud.

Kornblut is being considered for a program with the the probation office which would allow him to do community service restitution in exchange for charges being dismissed, Assistant U.S. Attorney William E. Day said in a previous interview.

Berry originally intended to plead guilty to the charges of stealing government funds but suddenly opted out of the plea during a court hearing in July.

That move meant the seven-page agreement Berry and his lawyers had with prosecutors in the case were scrapped, as it appears a jury trial will be held in the case.

Prosecutors had agreed the government wouldn’t pursue charges against Berry’s wife if he pleaded guilty to federal charges.

Sheila Berry, 46, was released Sept. 16 on an unsecured bond, federal court officials said.

Lenneau Berry is serving 2½ years on probation after pleading guilty May 19 to state charges of misconduct in office, obstruction of justice and insurance fraud.
He was sentenced to four years in prison, suspended to 30 months’ probation, after he pleaded guilty to misconduct in office, said Mark Plowden, a spokesman for S.C. Attorney General Henry McMaster.

Fifteenth Circuit Court Judge Steven John also ordered the former mayor to pay $2,757.51 in restitution.

Lenneau Berry also received separate two-year sentences — also suspended to 30 months’ probation — on five counts of obstruction of justice and making a false statement (insurance fraud).

During the investigation, it came to light that Lenneau Berry lied to the Hartford insurance company about his employment, Plowden said.

Lenneau Berry’s probation sentences run concurrently.

Lenneau Berry was indicted in November 2006 on one count of common law official misconduct in office and five counts of common law obstruction of justice.

Gov. Mark Sanford suspended Lenneau Berry from office the following day.