Horry County Lawsuit Alleges Luxury Item Fraud by Employees

Two former Horry County procurement officials filed lawsuits in 2025 claiming they were pushed out of their jobs after discovering that county employees had used government purchasing cards to buy golf equipment, large-screen televisions, and other luxury goods shipped to their private homes. The Horry County luxury item fraud lawsuit filed by Lauren DeMasi is pending in federal court; a parallel suit by former deputy procurement director Jessica Williams is pending in state court. Both cases remain active, and the county has denied the firings were retaliatory while declining to comment on the specifics.

What the Procurement Officials Say They Found

According to DeMasi’s complaint, the issue surfaced in April 2024 when she was reviewing an employee expense spreadsheet covering purchases made through the Horry County Magistrates and Solicitor’s offices. Many items had delivery addresses that did not match county property and instead appeared to be the private residences of county employees. The purchases included golf equipment, large-screen televisions, and other items the complaint calls “luxury goods.”¹

DeMasi reported what she found to her supervisors, Deputy Director of Procurement Jessica Williams and Director of Procurement Kimberlie Massie. The three also identified what they believed was “significant fraud” at the Myrtle Beach International Airport, where a passenger boarding bridge had allegedly been bought through a sole-source procurement rather than the competitive bidding the county’s regulations would normally require for a purchase that size.²

On June 4, 2024, the procurement team held an internal meeting about the findings. Massie, Williams, DeMasi, and a staff member named Tara Chestnut-Smith were present. Massie and Williams discussed referring the matter to the U.S. Department of Justice, fearing county leadership would otherwise “sweep it under the rug.”³ According to both lawsuits, Chestnut-Smith secretly recorded that meeting and later turned the recording over to Human Resources.²

Who Was Fired and When

Williams and Massie were terminated on June 13, 2024, nine days after the meeting. Assistant County Administrator Barry Spivey presented Williams with her termination letter. The county’s stated reasons included “creation of a non-harmonious work environment and loss of trust in execution of duties.”⁴ Williams’ lawsuit alleges the county later shifted its explanations across different proceedings, at various points blaming “inefficiency,” “declining work performance,” and even claiming she had kept “kittens in her office during the workday.”⁵

DeMasi’s employment ended five days later, on June 18, 2024. Her complaint says she was told that if she did not resign, she would be fired and left ineligible for unemployment benefits. She alleges this was a lie meant to coerce her departure and keep her from filing a grievance.⁶

Both suits also allege that false rumors circulated about the fired officials, including that Williams and her supervisor were in a “cult” and in an “improper romantic relationship.”⁵

The Two Lawsuits

DeMasi filed her complaint on March 31, 2025, in the U.S. District Court for the District of South Carolina, Florence Division, as Case No. 4:25-cv-02697-SAL. She brings five causes of action: wrongful discharge in violation of public policy, defamation, civil conspiracy, violation of the South Carolina Whistleblower Act, and violations of the First and Fourteenth Amendments under 42 U.S.C. § 1983. She is seeking reinstatement, actual and punitive damages, lost wages, attorneys’ fees under 42 U.S.C. § 1988(b), declaratory and injunctive relief, and a jury trial.²

Williams filed her lawsuit on April 1, 2025, in the Court of Common Pleas for the Fifteenth Judicial Circuit in Horry County, Case No. 2025CP2602805. She alleges wrongful discharge, defamation, and civil conspiracy, and names Horry County, Chestnut-Smith, and county employee April Kelly as defendants. Williams is seeking damages, prejudgment interest, equitable relief including reinstatement or front pay, and a jury trial. The county’s internal grievance committee previously upheld her termination.⁵

Who Is Named and What They Allegedly Did

DeMasi’s federal complaint names Horry County and six individuals, each accused of a specific role in what the suit calls a conspiracy to silence the procurement team and conceal the fraud:

Barry Spivey, now County Administrator, carried out the terminations and is named on claims of whistleblower retaliation, wrongful termination, and defamation.
Judi Olmstead, Director of Airports, is named in connection with the suspected procurement irregularities at Myrtle Beach International Airport.
Katie Badgett, Assistant Human Resources Director, allegedly told community members DeMasi had been fired for “being in a cult.”
Tara Chestnut-Smith allegedly made the secret recording of the June 4 meeting and filed the HR complaint that preceded the firings.
April Kelly allegedly helped Chestnut-Smith file the HR complaint and lobbied for the terminations, after previously saying she believed she should hold Williams’ position.
Tammy Stevens, Procurement Director, is named on claims of whistleblower retaliation, wrongful termination, and defamation.

The complaint alleges these individuals worked together to create a “false pretext” for removing the employees who had uncovered the fraud.² The plaintiffs also point to a January 13, 2025 county action granting Olmstead expanded authority to approve airport contracts, modifications, and change orders up to $500,000 without preapproval from the Procurement Department, arguing that the county rewarded rather than scrutinized the people involved.⁷

What Horry County and the Solicitor Have Said

County spokesperson Mikayla Moskov said Horry County “does not comment on pending litigation matters.” Council members Dennis DiSabato, Johnny Gardner, Michael Masciarelli, and Tyler Servant told reporters they were either unaware of the suits or unable to comment.⁸

Because DeMasi’s complaint references purchases made through the Magistrates and Solicitor’s offices, 15th Circuit Solicitor Jimmy Richardson issued a statement on April 4, 2025. Richardson said he had “no information or knowledge about luxury items” and noted that the complaint does not attribute golf clubs or televisions to the Solicitor’s Office. He acknowledged that 17 boxes had been delivered to an employee’s home address during the 2023 and 2024 fiscal years, saying the office does not occupy space in the courthouse, lacks a secure mailroom, and sometimes receives deliveries after hours. According to Richardson, the boxes contained work items such as textbooks for treatment court participants, graduation tassels and robes, urine testing supplies, crowd control barriers, office furniture, air purifiers, and two Ring doorbells, all of which he said were brought to the treatment court facility within 48 hours and documented with the county’s auditors. He declined to address allegations involving other departments.⁹

Where the Cases Stand

In the DeMasi federal case, Judge Sherri A. Lydon signed a third amended scheduling order in June 2026 setting a discovery deadline of September 18, 2026, a mediation deadline of October 2, 2026, and jury selection no later than December 8, 2026. Horry County filed a consent motion for a confidentiality order in June 2026.¹⁰ The Williams state court case is also pending, with a jury trial demanded.⁵ Kimberlie Massie, the former procurement director fired alongside Williams, has not filed a lawsuit of her own as of mid-2026.³

No Criminal Investigation Reported

No criminal investigation by the South Carolina Law Enforcement Division or any other agency has been publicly reported in connection with the procurement fraud allegations. These are civil cases. During an HR interview after her termination, Williams was asked whether she had “contacted the FBI,” but no reporting confirms that any federal agency opened a probe.¹¹

1
WPDE. Former Horry Co. Employee Files Lawsuit Claiming Procurement Fraud, Wrongful Termination
2
Burnette Shutt & McDaniel. DeMasi v. Horry County Government, Case No. 4:25-cv-02697-SAL
3
The Post and Courier. Horry County Fraud Spending Lawsuit
4
My Horry News. Lawsuit Claims Horry County Funds Were Used to Purchase Luxury Goods
5
WBTW. Williams v. Horry County, Case No. 2025CP2602805
6
Yahoo News. Former Horry County Procurement Officers Fired Amid Sweeping Investigation
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Horry County. Delegation of Procurement Authority — Judi Olmstead
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CountOn2. Former Horry County Procurement Officers Fired Amid Sweeping Investigation
9
WMBF News. Solicitor Responds to Lawsuit Claiming Horry County Fraudulently Spent Funds
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PACER Monitor. DeMasi v. Horry County et al., Case 4:25-cv-02697
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WBTW. Former Horry County Procurement Officers Fired Amid Sweeping Investigation