Forensic Audit Fallout: Hampton Residents Hear From State Treasurer

Getting your Trinity Audio player ready...

by JENN WOOD

***

Hampton County residents packed a community hall in Varnville, South Carolina on Tuesday night (September 30, 2025) to confront the fallout from a blistering forensic audit — but the evening began with a pointed reminder from former county councilwoman Maggie Knox about what wasn’t in the report.

Knox told the crowd the audit repeatedly cited “turnover” as a reason key records could not be located.

“The term turnover was used five times as a reason that documents were not readily available,” Knox said. “I can tell you that significant turnover within the finance department did not occur until 2024. Using that as an excuse as to why documents were not available, witnesses were not available — quite frankly, does not hold water.”

Knox then ticked through a list of missing records that should have been easy to produce: Palmetto State Bank account statements, loan agreements, bond documents, and nine years of county credit card statements. Knox even pointed to an organizational assessment report by MRB Group — supposedly “unavailable” — that she said was physically in the county’s possession and had been passed between officials.

“This makes no sense to me,” Knox told residents. “The documents were there, but they were not turned over.”

With that, the discussion turned to the audit’s substance: millions diverted from restricted funds, questionable loans, lavish credit card spending, and a county government that repeatedly failed to document or explain its actions.

***

Knox’s frustration underscored one of the central themes of the 50-page forensic report (.pdf), prepared by Eide Bailly LLP on behalf of the S.C. Office of State Auditor – that Hampton County government failed to keep basic records, repeatedly moved money without explanation, and consistently left taxpayers in the dark

From there, the discussion shifted to the audit’s substance — millions diverted from restricted funds, questionable loans, lavish credit card spending, and the unauthorized bailouts of nonprofits. What emerged was less a technical review of accounting errors and more a community reckoning over trust, accountability, and what comes next for Hampton County.

Knox was joined on stage by South Carolina state treasurer Curtis Loftis and state representative Bill Hager, both of whom echoed her concerns and pressed the case for stronger accountability. Together, the three laid out a picture of a county that not only mismanaged millions but also resisted transparency at every turn.

According to Loftis, Hampton’s problems were part of a broader pattern across South Carolina – while Hager framed the town hall as an essential step in restoring public trust. Residents, meanwhile, pressed all three officials with pointed questions about who approved the transfers, why documentation was missing, and whether criminal charges would follow.

***

RELATED | ‘WASTE, ABUSE AND UNAUTHORIZED SPENDING’

***

“THE MONEY WAS MOVED”

Knox — who served on council during the years covered by the audit — walked residents through some of the most troubling transactions.

She pointed to $13.2 million borrowed from the voter-approved Capital Projects Sales Tax (CPST) fund between 2013 and 2021 — more than was ever collected from the levy.

“That money was meant for libraries, recreation centers, and public safety facilities,” Knox said. “Instead, it was dumped into the general fund with no explanation.”

Knox also flagged loans pulled from the Airport Commission fund, even though the airport wasn’t generating meaningful revenue.

“It stands to reason those loans came out of USDA grant money or state aeronautics funds,” she noted. “That would not be permissible.”

On credit cards, Knox described a system run amok: at least 19 cards circulating across county offices, thousands spent on meals, hotels, and even Las Vegas trips.

“We had ordinances limiting use to department heads with administrator approval — but no one followed them,” she said. “That’s not just sloppy, that’s abuse.”

Loftis told the crowd Hampton’s failures were not unique.

“We’re seeing restricted funds misspent, misappropriated, and no one punished because the law doesn’t carry teeth,” Loftis said. “You can steal from the people, but you can’t steal from Columbia or D.C. If you owe the federal government, they’ll come get you. Counties? Too often it just slides.”

Loftis pledged to push for tougher audits and promised to press for answers on whether Hampton taxpayers ever got value for the millions that moved between accounts.

***

RELATED | LOWCOUNTRY SOUTH CAROLINA OFFICIALS INDICTED

***

“OUR JOB IS TO SHOW WHAT WASN’T DONE”

Representative Hager described the town hall as part of a broader effort to restore transparency.

“Our job tonight is to show what wasn’t done so that folks know what we’re working on,” Hager said, urging residents to keep pressure on state investigators. Knox confirmed that the South Carolina Law Enforcement Division (SLED) has two active investigations tied to Hampton County — one involving the sheriff’s office, another targeting county administration.

Several residents asked blunt questions about who approved million-dollar transfers and why no one had been charged criminally. Others wondered if new fiscal controls — including a recently implemented financial system — would actually prevent history from repeating itself.

Complicating the picture, FITSNews obtained a letter from county administrator Lavar Youmans dated September 26 — just days before the town hall. In the letter (.pdf), Youmans told Loftis, Hager, and senator Margie Bright Matthews that Hampton County intended to release a “comprehensive, fact-based public statement only after both audits are completed.”

But both the S.C. Department of Revenue (SCDOR) compliance audit and the forensic accounting report have already been finalized and released.

Youmans’ letter underscores the very communication breakdowns and credibility gaps residents railed against at the meeting.

For residents, the message was clear: they voted for recreation centers, libraries, and emergency facilities — and instead watched millions siphoned off to keep the county afloat. The forensic audit may have put specific dollar amounts in the place of years of suspicion – but it’s now up to state investigators and prosecutors to determine whether Hampton County’s failures wind up becoming a criminal case.

Several speakers reminded the crowd that real accountability won’t just come from Columbia — it will come at the ballot box. Knox noted that past efforts to “cut the head off the snake” failed because entrenched incumbents still held power, while Loftis encouraged citizens to stay engaged and demand fiscal transparency from their leaders. Hager echoed the point, urging residents to keep up grassroots pressure on both county council and state investigators.

Until then, the town hall offered more outrage than resolution — and a reminder that the fight for accountability in Hampton County is far from over.

***

ABOUT THE AUTHOR …

As a private investigator turned journalist, Jenn Wood brings a unique skill set to FITSNews as its research director. Known for her meticulous sourcing and victim-centered approach, she helps shape the newsroom’s most complex investigative stories while producing the FITSFiles and Cheer Incorporated podcasts. Jenn lives in South Carolina with her family, where her work continues to spotlight truth, accountability, and justice.

***

WANNA SOUND OFF?

Got something you’d like to say in response to one of our articles? Or an issue you’d like to address proactively? We have an open microphone policy! Submit your letter to the editor (or guest column) via email HERE. Got a tip for a story? CLICK HERE. Got a technical question or a glitch to report? CLICK HERE.