Council chief indicted

Orangeburg County Council chairman faces bribery, extortion charges

By ADAM BEAM

abeam@thestate.com

A 20-year Orangeburg County Council veteran and educator has been indicted on federal extortion and bribery charges, and state and federal officials made an example out of him at a news conference announcing the creation of a public corruption task force.

A federal indictment alleges that County Council chairman John H. Rickenbacker asked a health care company consultant for money in return for political support and confidential documents pertaining to The Regional Medical Center of Orangeburg and Calhoun counties.

Rickenbacker pleaded not guilty Wednesday in federal court. If convicted, he could face up to $500,000 in fines and 30 years in prison.

“I am genuinely grieved at the embarrassment and pain these accusations will cause my family and constituents,” Rickenbacker, 54, said in a written statement given to reporters outside of the Perry federal courthouse. “I recognize these charges are a blight on my record of accomplishments.”

U.S. Attorney Reginald Lloyd made the announcement at a news conference Wednesday morning touting the creation of a public corruption task force.

“An act of public corruption is no less criminal than a violent crime committed on the streets of this state,” Lloyd said. “Whether by force, bribery or good, old-fashioned cheating, those engaged in such conduct better come see us before we come see you.”

Rickenbacker played a key role in bringing a joint city and county industrial park to I-26 and U.S. 301. Last week, county officials announced Allied Air will be the first tenant.

He also was the force behind the passage of a 1-cent sales tax in Orangeburg County, which led to $50 million in infrastructure improvements.

“This story today comes as a complete surprise to me,” Orangeburg County administrator Bill Clark said. “In the time I’ve known him, I’m certainly inclined to give him the benefit of the doubt until all the evidence has been presented.”

Brian Lankin, special agent in charge of the Columbia FBI office, said the creation of the task force is not in response to a specific investigation or “an increase in activity here in South Carolina.”

Officials said the task force “formalizes” the cooperation of state and federal agencies.

Robert Stewart, chief of the State Law Enforcement Division, and Brian Lankin, special agent in charge of the FBI office in Columbia, would not say how many agents have been assigned to work on public corruption cases in South Carolina. However, they did call it a top priority in criminal investigations.

State Attorney General Henry McMaster said he and several of his staff have been sworn in as agents of the federal grand jury. Likewise, McMaster said Lloyd has already been sworn in as a special agent of the state grand jury.

“That’s a formal step that has been made that the U.S. attorney says will allow us to be able to move forward immediately,” McMaster said.

About 17 corruption task forces exist across the nation, said FBI spokesman Steve Kodak. The oldest task force, in New Orleans, is about 10 years old. Some states, including New York, California and Florida, have multiple task forces because of the population size.

In the Rickenbacker case, a health care company, which was not named in the indictment, was considering buying or leasing the medical center, an action that would require approval by County Council.

The company, through a consultant, had set up an appointment to talk with Rickenbacker, who has been chairman of the council since 1995 and was running unopposed in the November election.

At that meeting, according to the indictment, Rickenbacker told the consultant that council had asked a private consulting company to make an evaluation of the hospital’s financial situation. Rickenbacker allegedly offered to give the consultant that report during the bidding process and his vote on council in return for a $5,000 per month payment in cash.

After that November meeting, the company consultant introduced Rickenbacker to an undercover FBI agent posing as another consultant for the company.

From December 2005 through May 2006, Rickenbacker allegedly met the FBI agent six times and received a total of $50,000 cash. The largest payment of $19,000 was made May 17.

The financial evaluation was presented to council at a June 15 meeting.

Rickenbacker was indicted June 21, but the indictment wasn’t made public until Wednesday.

Gov. Mark Sanford signed an executive order Wednesday suspending Rickenbacker as a councilman.

Reach Beam at (803) 771-8405.