South Carolina Treasurer Suspended in Wake of Cocaine Charges

Jun 19, 11:20 PM

Current Headlines: COLUMBIA, S.C. _ State Treasurer Thomas Ravenel was indicted on federal drug charges Tuesday and was suspended from office by Gov. Mark Sanford.

Ravenel, 44, and Michael L. Miller of Mount Pleasant, S.C., are charged with one count each of conspiracy to possess and intent to distribute cocaine.

Miller already is in state custody on charges of trafficking cocaine. Ravenel is scheduled to appear July 9 in federal court in Columbia for arraignment, U.S. Attorney Reggie Lloyd said.

Ravenel, a Republican, was elected treasurer in November. The charge filed Tuesday said he has "knowingly, intentionally and unlawfully possess(ed) with intent to distribute" cocaine since at least late 2005.

The case grew out of a Charleston Police Department investigation into narcotics, State Law Enforcement Division Chief Robert Stewart said.

The Charleston police asked for SLED's assistance in that investigation, Stewart said.

"Information was developed that state Treasurer Thomas Ravenel allegedly was involved in this illegal activity," Stewart said at a news conference.

Stewart asked the FBI and U.S. attorney to join the investigation April 1, once the case involved a statewide elected official who "administers the use of vast public funds."

Lloyd described Miller as a drug dealer. He stressed Ravenel was not charged with selling cocaine. Under federal law, a charge of intent to distribute cocaine can mean a defendant acquired the drug and gave it to others. Lloyd would not say to whom Ravenel allegedly gave cocaine.

Efforts to reach Ravenel were unsuccessful. He is represented by Columbia lawyer Joel Collins, according to Scott Malyerck, communications director for the treasurer's office. Efforts to reach Collins also were unsuccessful.

The charges come the day after Ravenel attended a dinner at an upscale Columbia restaurant. There, he seemed "not to have a care in the world," said former state Revenue Department director Burnie Maybank, who hosted the dinner at Saluda's in Five Points. "It's just a shocker."

Malyerck said he did not know the indictment was coming and declined to comment on it. He said Ravenel had meetings outside of his state office Tuesday.

"The work of the treasurer's office goes on," he said. "Our banking, investing and management practices go on."

Malyerck said staff will manage the office until Sanford names an interim treasurer, who will serve until the case is resolved. If Ravenel is acquitted or charges are dropped, he can reassume the post. If he is convicted or resigns, the office becomes vacant, and the General Assembly will elect a new treasurer. Ravenel's term runs through 2010.

Sanford moved quickly to suspend Ravenel, an ally.

"Given the grave nature of these charges and what is alleged in this indictment, we're left with no choice but to suspend Treasurer Ravenel immediately," Sanford said in a statement, adding he plans to name an interim treasurer soon.

Ravenel rose quickly to prominence in S.C. politics, aided by his valuable pedigree as the son of former U.S. Rep. and state Sen. Arthur Ravenel of Charleston.

Thomas Ravenel first ran for public office in 2004, seeking the GOP nomination for the U.S. Senate. The multimillionaire real estate developer put thousands of his own dollars into the race, finishing a close third in the Republican primary. Ravenel then endorsed the eventual winner, Sen. Jim DeMint, R-S.C.

More recently, Ravenel mulled a 2008 challenge to Sen. Lindsey Graham, a Republican from Seneca, S.C., before changing course and running for treasurer in 2006.

Ravenel barely won the GOP primary over state Sen. Greg Ryberg, R-Aiken, and former state House Majority Leader Rick Quinn, R-Richland.

Ryberg, endorsed in the primary by Sanford, is considered a top candidate to be named interim treasurer. Efforts to reach Ryberg late Tuesday were unsuccessful.

Should the office eventually become vacant, Quinn said Tuesday he would consider running. "I'd have to consider it."

Ravenel defeated veteran incumbent Grady Patterson, a Democrat, in November. Patterson had been treasurer for 36 of the past 40 years.

"It's my hope for Thomas Ravenel and the people of this state that the charges don't hold true," Patterson said in a statement.

The S.C. Democratic Party said Ravenel was an "embarrassment." "In only a few months, Thomas Ravenel has gone from spoiled, rich kid buying his way into office to common street criminal," Democratic chairwoman Carol Khare Fowler said.

Ravenel also was a state director for Rudy Giuliani's 2008 the GOP presidential bid. The Giuliani campaign said Tuesday Ravenel had left the campaign.

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ABOUT THOMAS RAVENEL

Age: 44

Hometown: Charleston

Occupation: Former state treasurer. Before his election, he was president of Ravenel Development Corp.

Family: Single

Education: Bachelor's degree in business administration, The Citadel, 1985; master's in business administration, USC, 1991

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TIMELINE

Thomas Ravenel, millionaire son of a powerful Charleston politician, had a swift rise in South Carolina politics.

_2003: Enters the race to succeed retiring U.S. Sen. Fritz Hollings.

_June 8, 2004: After using some of his own money to help finance his campaign, Ravenel finishes third in the crowded primary.

_June 22, 2004: Jim DeMint crushes former Gov. David Beasley in the GOP runoff. Ravenel's endorsement of DeMint is seen as a key to victory.

_March 2006: Ravenel files paperwork to run for treasurer, just beating the filing deadline. Again, GOP field is crowded as the party looks to oust longtime treasurer Grady Patterson, a Democrat.

_June 2006: Ravenel comes in first in the GOP primary against four opponents. Opponents say Ravenel enters race as warm-up to eventually challenge U.S. Sen. Lindsey Graham, which he denies. October 2006: Ravenel is fined $19,500 by the Federal Elections Commission for failing to file campaign paperwork accurately and in a timely way.

_November 2006: Ravenel defeats Patterson and becomes treasurer. June 2007: With Graham leading the charge in Washington on an unpopular immigration bill, whispers of a primary challenge in 2008 persist. Ravenel said he would not challenge Graham, but few believe it would be difficult to coax him into the race.

_Tuesday: Ravenel is indicted for possession of cocaine with intent to distribute and suspended from office.

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WHAT NOW?

_Who Takes Over: What the law says and whom Gov. Mark Sanford is likely to consider to serve as an interim treasurer

_The Law: The governor can suspend from office an elected official who has been indicted on felony charges and is not in the General Assembly. The governor can appoint an interim officeholder. If the elected official is convicted, the governor can remove him from office, officially creating a vacancy. When there is a state treasurer vacancy, the General Assembly elects a permanent replacement.

_Replacements: Two names are being mentioned: Sen. Greg Ryberg, R-Aiken _ a Sanford friend who lost to Ravenel in the GOP primary Former state representative Rick Quinn of Irmo, who also ran unsuccessfully for the GOP nomination for treasurer

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TREASURER'S DUTIES

The Office of the Treasurer's responsibilities. By state law the state's treasurer:

_Is a voting member of the State Budget and Control Board, a five-member panel that oversees spending, approves some contracts and manages much of state government.

_Is responsible for investing the state's money and managing a portion of the state retirement system's portfolio.

_Is responsible for the state's banking services. The treasurer pays the state's bills and issues its debts.

_Is a trustee for unclaimed property.

_Is a point person for monitoring the state's credit rating.

Source: S.C. Treasurer's Office

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NOTABLE QUOTES

_"It's very sad for the state. And very sad for his family." (state Sen. Tommy Moore, D-Aiken)

_"Thomas had the world at the tip of his fingers, really. I hate it for him, for his family, and for state government. This will be very disruptive for state government." (state Sen. Chip Campsen, R-Charleston, who said he is a friend of Ravenel's and a long-time friend of the Ravenel family)

_"Holy mackerel. Holy mackerel!" (state House Minority Leader Harry Ott, D-Calhoun, who along with other members of the House, were reading about the indictment online)

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(State correspondent Wayne Washington contributed to this report.)

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(c) 2007, The State (Columbia, S.C.).

Visit the State at http://www.thestate.com/

Distributed by McClatchy-Tribune Information Services.

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