A former state legislator has pleaded not guilty to charges of money laundering and engaging in transactions using illegal proceeds.
Former State Rep. Thad Viers entered the plea during his arraignment in federal court Thursday. Prosecutors say the Myrtle Beach Republican helped a paving contractor who had defaulted on a $6 million road project.
An indictment unsealed earlier this month asserts that Viers helped the man hide his ownership in a marina and an investment firm when a bonding company sought to collect the debt. That contractor Marlon Weaver pleaded guilty to money laundering in 2013.
Viers was indicted on 12 counts of engaging in transactions using illegal proceeds, one count of money laundering, and another count of lying to an IRS agent. Prosecutors say Weaver backdated documents to make it appear he had transferred his interest in the marina and side business.
The indictment states Viers helped Weaver hide his financial assets by withdrawing $524,000 from his law firm’s trust account between February and October 2011. The indictment states Viers knew the money came from Weaver’s unlawful activities. Viers was also accused of working with a third man to help hide Weaver’s assets from September 2009 to October 2011.
According to the Associated Press, Viers’ attorney Pete Strom maintained that his client did not realize he was breaking the law. Strom told reporters outside the Florence courtroom Thursday that South Carolina’s two law schools do not properly teach law students about complex financial matters they could encounter.
Viers served in the state House of Representatives from 2003 until 2012. He resigned to face harassment charges and eventually pleaded guilty to second-degree harassment in January. He was sentenced to 60 days in prison (to be served on weekends) and a year of probation. Most of these new charges allegedly occurred while Viers was still in the House, although prosecutors say the charge of lying to an IRS agent stems from a March conversation.