Jeffrey McWhorter, former President and CEO of Palmetto Railways, has admitted guilt in a conspiracy to commit honest services fraud. The fraudulent activities took place during his tenure at the company.

The investigation revealed that McWhorter introduced a co-conspirator, identified as T.B., to a Texas-based company. T.B. sought McWhorter's help to secure a contract for work in Charleston from this company.

Before the contract was awarded, discussions occurred between McWhorter, T.B., and an employee of the Texas company (referred to as Employee 1). They discussed payments from T.B. to both McWhorter and Employee 1 if the contract was secured.

It was agreed that T.B. would transfer money to Employee 1, which he did by wiring funds to an account under Employee 1's wife's business name. Employee 1 was then supposed to pay McWhorter his share in cash.

The evidence showed that these payments could have resulted in economic harm to the Texas company. In total, T.B. wired at least $400,000 to Employee 1, with McWhorter receiving at least $90,000 in cash.

McWhorter faces up to five years in federal prison, a fine of up to $250,000, restitution payments, and three years of supervised release following imprisonment. United States District Judge David C. Norton accepted his guilty plea and will determine his sentence after reviewing a report from the U.S. Probation Office.

The FBI Columbia Field Office conducted the investigation into this case, which is being prosecuted by Assistant U.S. Attorney Amy Bower.