Charleston County, S.C. – The former president of Palmetto Railways, Jeffrey McWhorter, has been sentenced for his role in a fraud conspiracy involving public corruption, according to the U.S. Department of Justice.
McWhorter, 63, of Mount Pleasant, was sentenced to five years of probation, including 12 months of home confinement with electronic monitoring. He has also been ordered to:
- Pay $75,198.02 in restitution
- Pay a $4,000 fine
- Complete 300 hours of community service
The Fraud Scheme
McWhorter pleaded guilty in December to conspiracy to commit honest services fraud, a type of white-collar crime where a public official accepts personal benefits in exchange for favours.
The case involved Kevin Newkirk, an employee of a Texas-based logistics company, and Tony Berenyi, owner of Berenyi Construction.
Here’s how the scheme worked:
- The Texas company sought contractor recommendations for a major project.
- McWhorter, then a public official with Palmetto Railways, recommended Berenyi Construction.
- During the bidding process, McWhorter, Newkirk, and Berenyi discussed a payment deal if the contract was awarded to Berenyi.
Secret Payments and Wire Transfers
After Berenyi Construction won the bid, payments totaling $420,000 began. These were sent to a bank account held in the name of Newkirk’s wife.
McWhorter’s share — $136,500 in cash — was paid by Newkirk over time. These payments were never reported on McWhorter’s official filings, which are required for public officials to disclose potential conflicts of interest.
Co-Conspirator Also Sentenced
Kevin Newkirk was also charged in the case and was sentenced in April to five years of probation by Judge David Norton.
The case was investigated by:
- FBI – Columbia Field Office
- IRS – Criminal Investigation Division
It is being prosecuted by Assistant U.S. Attorney Amy Bower.
The sentencing of McWhorter highlights the serious consequences of public corruption, even when no taxpayer funds are directly stolen. While he avoided prison time, the sentence reflects a strong stand against dishonesty in public service. With home confinement, restitution, and community service ahead, McWhorter now faces the personal cost of his actions.
