SC Agency Was Under State & Federal Investigation

The director of South Carolina's Department of Labor, Licensing and Regulation told a state Senate subcommittee Friday that an employee had been selling cosmetology licenses illegally out of the agency's parking lot and that the agency had been under state and federal investigation.

"I was shocked," says Sen. Kevin Bryant, R-Anderson, chairman of the subcommittee.

Senators wanted to hear how the agency had responded to a July audit that found several problems. The investigations and allegations of corruption were not public knowledge until the hearing, though, and were not a part of the audit.

Catherine Templeton says, "The allegation or the charge was the employee was selling licenses, and presumably to support the human trafficking that goes on through the nation. The licenses were provided to individuals who were not, who had not met the statutory requirements for the licenses and enabled people who were not otherwise qualified to work in South Carolina."

She says the illegal licenses were for nail technicians and that human traffickers often get illegally obtained licenses so they'll have a way to put their victims to work.

The LLR employee was fired and investigated and charged by the State Law Enforcement Division. Templeton says the employee was allowed to enter a pre-trial intervention program to avoid possible prison time.

Templeton says she also forced the retirement of another employee who was over the cosmetology section because the FBI was also investigating licensing at the agency.

"This is all very, very disturbing to be hearing," said Sen. Shane Massey, R-Edgefield.

In a written statement after Friday's hearing, Sen. Greg Ryberg, R-Aiken, chairman of the Senate Labor, Commerce and Industry Committee, said, "The discussion today of the sale of licenses as part of human trafficking in SC is not only outrageous but also disgusting. The senate LCI subcommittee chaired by Senator Kevin Bryant will follow up on this issue to insure that as director Templeton testified, this activity no longer occurs at LLR. I trust that the proper authorities will pursue the individuals involved and bring them to justice."

Templeton says all of the issues raised by the audit had been taken care of before the audit final report was even released.

It had found that a large percentage of the phone calls to the agency went unanswered. Templeton says there have been major changes, and the average call is now answered within about 30 seconds.

The audit also criticized the agency for spending more than $2 million for a new computer system that was never delivered. Templeton says the agency is now in court to get that money back.

It has also changed how amusement rides are inspected after a fatal accident on the children's train at Cleveland Park in Spartanburg. Instead of one inspector looking at a ride, the agency now hires an outside inspector who is followed by an auditor from the agency.