Jeffrey McWhorter, the former president of Palmetto Railways, has been sentenced to five years of probation with 12 months of home confinement. The sentence follows his involvement in a conspiracy to commit honest services fraud.
The investigation revealed that McWhorter, along with Kevin Newkirk, conspired to accept payments from Tony Berenyi of Berenyi Construction. This was contingent on Berenyi being awarded a construction bid for the Texas-based logistics company where Newkirk was employed. McWhorter facilitated an introduction between the Texas Company and Berenyi, and once the contract was awarded to Berenyi Construction, payments began.
Throughout the conspiracy, Berenyi transferred $420,000 to a bank account under Newkirk’s wife's name. Of this amount, McWhorter received $136,500 in cash payments from Newkirk. These transactions were not disclosed in mandatory public official filings.
United States District Judge David C. Norton handed down McWhorter's sentence which includes electronic monitoring during home confinement. Additionally, McWhorter is required to pay restitution amounting to $75,198.02 and a fine of $4,000. He must also complete 300 hours of community service.
Kevin Newkirk faced similar charges and was sentenced in April by Judge Norton to five years of probation.
The FBI Columbia field office and Internal Revenue Service Criminal Investigation conducted the investigation into this case. Assistant U.S. Attorney Amy Bower is leading the prosecution.
