HANAHAN, S.C. — The South Carolina State Ethics Commission has publicly reprimanded Hanahan Mayor Christie Rainwater after concluding she violated the state’s ethics law by participating in a city real estate transaction involving Carolina One Real Estate, where she worked as realtor, while failing to recuse herself from the matter.
In an eight-page Decision and Order, the commission’s hearing panel found Rainwater violated one count of South Carolina Code Section 8-13-700(A), which prohibits public officials from participating in matters involving a business with which they are associated that has an economic interest, and one count of Section 8-13-700(B) for failing to recuse herself from that same matter.
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The case centered on the June 2022 closing of city-owned property on Yeamans Hall Road. The panel determined Rainwater knowingly participated in the closing as mayor while Carolina One had an economic interest in the transaction.
“The evidence presented established that Respondent knowingly used her position as Mayor to participate in the Yeamans Hall Property closing, a matter in which Carolina One had an economic interest,” the panel wrote in its order. The commission further concluded Rainwater “knew or should have known” that her participation would secure an economic benefit for Carolina One.
However, the panel also found no evidence that Rainwater personally profited from the transaction.
In its ruling, the commission stated there was no evidence Rainwater negotiated or established the brokerage agreement between the city and Carolina One or that she personally received compensation from the commission paid to the real estate firm. The panel also acknowledged her cooperation throughout the investigation and hearing and noted her concern for the city and its residents.
As a result of the violations, the commission issued Rainwater a public reprimand and imposed a reduced civil penalty of $500 for each violation, plus a $1,100 administrative fee, totaling $2,100. If the amount is not paid within six months, the order states the penalty could increase to $7,834, including restitution to the City of Hanahan.
Rainwater responds
Speaking at the conclusion of Tuesday night’s Hanahan City Council meeting, Rainwater addressed the ruling publicly for the first time.
She began with a personal story about teaching accountability to children.
“In life, sometimes we do things we should do. Sometimes we do things we shouldn’t do. Sometimes it’s purposeful, tactical. Other times it’s by error or by mistake,” she said. “We own it. We apologize for it. Make it right and we learn from it.”
Rainwater emphasized that the commission determined she did not receive any personal financial benefit from the transaction.
“The commission’s ruling makes clear that I did not receive any personal financial benefit from the transaction,” she said. “I did not negotiate or arrange the city’s brokerage arrangement and was not found to have acted with the intent to enrich myself.”
She said she believed she was acting in the city’s best interest by ensuring closing documents accurately reflected an existing brokerage agreement established in 2020, before she became a licensed Realtor.
At the same time, Rainwater acknowledged she should have stepped aside from the matter.
“I recognize I made a mistake and I should have recused myself from that matter. I regret that I did not do so,” she said.
She concluded by reaffirming her commitment to serving Hanahan.
“I remain committed to serving the people of Hanahan with integrity and transparency. I look forward to moving ahead with the city’s business and to continuing serving our community.”
The ethics complaint was originally filed by C. Ray Wrenn and stemmed from the city’s sale of property on Yeamans Hall Road. After months of investigation and a public hearing, the commission concluded Rainwater violated the state’s conflict-of-interest provisions but stopped short of finding she personally benefited financially from the transaction.
Rainwater has 10 days from receiving the order to appeal the ruling to the full ethics commission, but she’s already said she doesn’t intend to file an appeal.
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