Tag: Southern Holdings

Legal Difficulties Loom for Judge John Rakowsky

A month ago, we reported that Lexington attorney and chief magistrate judge John Rakowsky was a defendant in a lawsuit filed in Las Vegas, Nevada federal court, Case No. 2:12-cv-02161-GMN-CWH.

The lawsuit is for Breach of Contract, Breach of Implied Covenant of Good Faith and Fair Dealing, Intentional Misrepresentation and Conversion of Property. The Plaintiff is Center for Legal Reform (CLR), a Nevada Non-profit Corporation as successor in trust to Resolution Settlement Corporation (RSC), a former Nevada corporation, which provided expense funds for the Southern Holdings case.

This case has the potential to fully expose the South Carolina legal system as a good ole boys club that protects its own at the expense of the law, fairness and justice.

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The Internet Sweepstakes Clean-Up

Raids on internet sweepstakes cafes continued in Horry County yesterday and, for the first time we can confirm, several locations within the city limits of Myrtle Beach were targeted by SLED officers.

For the first time since internet sweepstakes cafes began operating in Horry County over two years ago, there is a consistent policy being carried out that the games are illegal throughout the county.

Prior to yesterday’s raids, internet sweepstakes cafes were declared illegal by a county magistrate and subject to closure and confiscation in the unincorporated areas of the county, but were allowed to operate unimpeded by law enforcement within the Myrtle Beach city limits.

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Judge John Rakowsky Sued in Nevada

Attorney and Lexington Chief Magistrate Judge John Rakowsky will have to answer charges in a Nevada lawsuit that he misappropriated funds from his trust account intended for legal expenses in the Southern Holdings case.

The action, Case No. 2:12-cv-02161-GMN-CWH, was brought by Center for Legal Reform (CLR), a Nevada Non-profit Corporation as successor in trust to Resolution Settlement Corporation (RSC), a former Nevada corporation.

The suit brings four causes of action, Breach of Contract, Breach of Implied Covenant of Good Faith and Fair Dealing, Intentional Misrepresentation and Conversion of Property.

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Judge John Rakowsky Sued in Nevada

Attorney and Lexington Chief Magistrate Judge John Rakowsky will have to answer charges in a Nevada lawsuit that he misappropriated funds from his trust account intended for legal expenses in the Southern Holdings case.

The action, Case No. 2:12-cv-02161-GMN-CWH, was brought by Center for Legal Reform (CLR), a Nevada Non-profit Corporation as successor in trust to Resolution Settlement Corporation (RSC), a former Nevada corporation.

The suit brings four causes of action, Breach of Contract, Breach of Implied Covenant of Good Faith and Fair Dealing, Intentional Misrepresentation and Conversion of Property.

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Southern Holdings HCPD Defendant Arrested

One of the main police defendants in the Southern Holdings case was arrested early Monday morning for criminal domestic violence and misconduct in office and fired from the Horry County Police Department hours after the incident.

Charles K. McLendon was arrested for actions taken against his estranged wife while on duty, in uniform using a Horry County Police Department vehicle.

McLendon demonstrated erratic, abusive and potentially lethal behavior during the incident, according to details of the arrest. His actions were not unlike those he demonstrated over 12 years ago during the Southern Holdings case.

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S.C. Legal System Stacked Against Laymen

There seems to be a de facto informal system within the S. C legal system whereby officers of the court protect each other regardless of what laws, regulations and the code of conduct require.

Those of you who have served in the military, especially the Army, may be familiar with the term West Point Protection Association.

This was a term derisively used, especially during the Vietnam War, to describe an informal system whereby West Point graduates protected the records of each other regardless of rank or other considerations. One West Pointer protected another regardless of what actually happened in the field.

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Federal Tort Claims Lawsuit Part II

A federal tort claims lawsuit, with Horry County and former Horry County Police Department Chief Johnny Morgan included as defendants, is moving forward in Florence federal district court as discovery and depositions are scheduled later this month.

The suit stems from allegations of fraud on the court under color of law by HCPD officers, SLED agents and FBI agents, among others. The suit alleges personnel of these agencies conspired to withhold evidence, commit perjury and commit other unlawful acts in order to influence the outcome of a previous federal lawsuit, thereby violating the civil rights of the plaintiffs.

This is Part II of a series on how and why the county and its police department are now involved in defending a claim against them in excess of $100 million.

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SLED, the FBI and Statutes of Limitations

SLED, the FBI and Statutes of Limitations

“Whenever we hear SLED and FBI used in the same sentence, we can’t help but think of the Southern Holdings case.”

The best aspect of blogging is the opportunity to encourage an ongoing dialogue about issues, especially as they apply to the political arena.

Our recent post on internet sweepstakes cafes drew an interesting response that we believe deserves an answer.

The comment read: “This is the most obsurd (sic) thing I have ever read. SLED and the FBI will certainly solve this problem for you Mr. Sewell and Mr. Gable. They have done the research and they know who is involved and this is a very poor attempt at making this political. This Internet Sweepstakes Case has nothing to do with a political campaign. I would be careful at how I approach this or you will drag yourself into a place that you cannot get out of.”

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Bahama Island condo ‘financier’ Duwayne Woods arrested

When Will Somebody Arrest Ancil Garvin?

Sun News investigative reporter David Wren reported yesterday that Larry Duwayne Woods, the alleged mastermind behind the failed Bahama Island and Crystal Palace condominium projects financing scam, was arrested in San Diego, CA and will be returned to South Carolina to face charges.

Woods disappeared in 2007 when federal investigators began looking into the business dealings of local developers Jeff Shoup and Tommy Hix of T and J Development in North Myrtle Beach. Hix and Shoup are currently in federal prison after pleading guilty to conspiracy to commit mail, wire and bank fraud in connection with the failed condominium projects.

Woods, through his alleged business Atlewa Trust, was supposed to finance the projects, but got away with approximately $5 million of escrow money paid by advance purchasers of the condominiums.

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Is Justice Truly Blind?

An accounting for expense funds in the Southern Holdings case provided Sep. 15, 2011, to James Spencer, former CEO of Southern Holdings, Inc., does not conform to S.C. reporting requirements for attorney trust funds.

The accounting, which, reportedly, comes from trust account records of attorney John Rakowsky, was provided to Spencer by attorney Stephanie Weissenstein of the Desa, Ballard, Weissenstein Law Firm. Weissenstein is representing Rakowsky in an interpleader action of the remaining Southern Holdings expense funds held in trust by Rakowsky. Rakowsky represented Spencer and his co-plaintiffs in the Southern Holdings case,

Under deposits, an amount of $67,500 is shown with no identification of who provided the funds or when they were provided. Rule 417 of the S.C. Judicial Department and Rule 1.15 of the South Carolina Rules of Professional Conduct require the date, source and description of each amount deposited to be included in the records.

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