REGIONAL REPORT / FBI STING : South Carolina Statehouse Rocked by Investigation : A cloud of scandal grows as federal agents subpoena the campaign spending records of all of the state’s lawmakers.

A cloud similar to the one that enveloped the California Legislature two years ago has now settled over Columbia, the South Carolina capital. An FBI sting aimed at rooting out possible corruption in the Legislature has rocked state lawmakers and undermined reputations, although no charges have been filed yet.

Federal agents have subpoenaed all campaign spending records for every one of the state’s 124 House members and 46 state senators. Also, at least 15 legislators have been subpoenaed to appear before a federal grand jury.

The effect has been dramatic. The announcement of such a widespread probe is “devastating” to an entire institution because it often sours public perception, said Carl Tubbesing, director of the Washington, D.C., office of the National Conference of State Legislatures.

The taint could easily spread if the FBI continues to target state legislatures. Because so many of the nation’s 7,600 state lawmakers are “citizen legislators” with other jobs, they inherently face suspicion of conflicts of interest, even though their performances have “improved enormously in the last 15 years,” Tubbesing said.

The Sting

Ron Cobb, a gregarious, cigar-smoking former state legislator who is now a lobbyist in Columbia, apparently cooperated with FBI agents in the probe. Cobb allegedly doled out thousands of dollars in a hotel room to legislators who accepted the cash in exchange for promising to support long-stymied legislation to allow betting on dog and horse racing. The federal Hobbs Act makes it illegal for officials to accept money in exchange for official acts.

One of Cobb’s clients reportedly was Alpha Group, supposedly an Atlanta-based firm that was trying to promote parimutuel betting in South Carolina. However, directory assistance here provided no such listing.

The encounters were reportedly videotaped. Cobb hasn’t been talking since news of the sting broke, but reports speculate that he joined the operation for money or insulation from legal problems.

Federal authorities are not saying much either. In a joint statement on July 20, U.S. Atty. E. Bart Daniel and Frederick B. Verinder, special agent in charge of the FBI in South Carolina, said they were investigating “allegations of illegal conduct involving certain members of the South Carolina Legislature,” adding that the investigation “will be thorough, complete and brought to a conclusion as soon as possible.”

Impact

Around Columbia, the question immediately resounded: Did they or didn’t they?

For some, the question cut deeply. “Those people are just like family,” said Ada Loranger, manager of the Capitol restaurant, near the Statehouse. “And family don’t talk about family. Every legislator has been in here at one time or another.”

In interviews, several legislators denied wrongdoing.

Rep. Ennis Fant, a Democrat from Greenville who accepted a $1,300 contribution, said he and Cobb “talked very briefly. He said he wanted this legislation. I told him I was already in favor of it. He said: ‘Here’s a contribution.’ I said thank you.” Fant said he reported the contribution in his records, which were subpoenaed.

Even those who did not accept contributions say they are affected.

“All of us in the General Assembly are tainted by the whole thing, even those of us who are not involved,” said Rep. William McCain, an Orangeburg Republican. He said that at church, baseball games and other events, “people come up to me and say how disappointed they are.”

The state was ripe for a sting. State laws allow unlimited cash contributions, and lobbyists do not have to itemize the contributions.

Outlook

Campaign reform laws likely will result. Already, amid comparisons with other states, there are calls for change. In North Carolina, for example, a candidate can accept no more than $100 in cash.

Meanwhile, the federal probe is likely to be a long one. Influence-selling can be difficult to prove, so investigators must be extra careful in putting together their cases. In California, for example, a legislative sting surfaced in August, 1988, but the first indictment did not come until the following May.

Whatever the result, when the South Carolina investigation is done, McCain’s philosophy likely will have spread. “I don’t take cash contributions from lobbyists,” he said. “That’s not smart. It doesn’t only have to be right, it has to look right.”