SC, Horry County (WMBF) – Horry County and some of its top employees have been named in a newly filed lawsuit with alleged fraud.
Lauren Demasi filed federal lawsuits Monday against Holly County, Holly County administrator Barry Spivey, airport’s director Judy Olmsted, and several other county employees.
It alleges unlawful termination, honour damage, violations of South Carolina’s whistleblower law, violations of the first and fourth amendments and violations of civil conspiracy.
Demasi said he was employed in the county procurement department. This is getting and searching for all the supply, services and construction the county needs.
In April 2024, the lawsuit states that DeMasi was promoted to spend one day a week at Myrtle Beach International Airport and was assigned to work on a procurement project. At that time, Demasi revealed his alleged fraud while reviewing the cost spreadsheet.
“As part of this review, the plaintiff (DEMASI) noticed many purchases made by both the Holly County Magistrate and the Solicter office, which had delivery addresses that appear not to be county property, and in some cases the delivery appeared to be directed to the home address of a Holly County employee,” according to the lawsuit.
The lawsuit alleges that the Holly County Procurement Fund is being used to direct products such as golf equipment, big screen televisions and other luxury items to Holly County employee’s homes.
On June 4th, there was a meeting between Demasi and Harry County Procurement Director Kimberly Massey and Holly County Procurement Deputy Director Jessica Williams discussing alleged fraud.
There were concerns that if these allegations were brought to the top of Holly County, it would have been wiped out under the rug, according to the lawsuit.
“At the meeting, Williams and Ms. Massey discussed reporting alleged fraud to the U.S. Department of Justice,” the lawsuit states.
During that meeting, the lawsuit states that another employee, Tara Chestnut Smith, recorded the meeting without the knowledge of Demasi, Williams or Massie, and converted it into HR.
More than a week later, on June 13, the lawsuit stated that Williams and Massey ended in their position that “cite inefficiency or lack of application of job performance, creating an incongruous work environment, and loss of trust in performing duties.”
The document shows that on June 18th, Demasi was informed that he must attend a meeting with the Human Resources department.
That same day, the lawsuit said Demasi told procurement specialist Angela Williamson that she would “save information in case she is finished.”
According to the documents, Demasi was asked to resign because he caused “discongruence” in the workplace.
The lawsuit alleges during the meeting the HR department claims Demasi is able to receive unemployment benefits if they resign, but if they are fired, they are not eligible for benefits.
“The plaintiff later learned that this was a lie and the opposition was true. If the plaintiff was fired for no reason, she would have received unemployment benefits, but if she resigned, she would not be eligible for unemployment benefits,” according to the lawsuit.
Demasi resigned but tried to file a complaint about her firing, but Holly County told her she had no right to complain since she resigned, the lawsuit states.
The lawsuit also alleges that after she resigned, HR director Katie Badgitt told people that Demasi was fired because she became a cult.
Demasi is seeking a trial trial and is seeking that she be awarded actual damages to compensate her for her loss.
The WMBF contacted Holly County seeking a statement on the lawsuit, saying the county would not provide commentary on substantial issues relating to the pending lawsuit.
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