Summons and Complaint 8-18-2022

ELECTRONICALLY FILED - 2022 Aug 18 10:13 AM - LEXINGTON - COMMON PLEAS - CASE#2022CP3202829
STATE OF SOUTH CAROLINA ) IN THE COURT OF COMMON PLEAS

)
COUNTY OF LEXINGTON ) C.A. No.:
Doris Simmons, Mike Luongo and )

Barrett Black, )
)
Plaintiffs, )
)
vs. ) SUMMONS
) (Jury Trial)
The Town of Swansea, Viola McDaniel, ) (Declaratory Judgment)
Margaret Harvey and John E. Brown, ) (Injunctive Relief)
)
Defendant. )
____________________________________)
TO THE DEFENDANTS ABOVE-NAMED:
YOU ARE HEREBY SUMMONED AND REQUIRED to answer the Complaint in this
matter, a copy of which is herewith served up on you, and to serve a copy of your ANSWER to
said Complaint upon the subscriber at his office, 1700 Sunset Boulevard, P.O. Box 5709, West
Columbia, South Carolina, 29171, within THIRTY (30) days from the service thereof, exclusive
of the day of such service, and if you fail to answer the COMPLAINT within the time aforesaid,
judgement by default will be rendered against you for the relief demanded in the Complaint.
MOORE BRADLEY MYERS LAW FIRM, P.A.
BY: s/ S. Jahue Moore

S. Jahue Moore (SC Bar #4063)
1700 Sunset Boulevard
P.O. Box 5709
West Columbia, South Carolina 29171
Phone: (803) 796-9160
ATTORNEY FOR THE PLAINTIFFS

West Columbia, South Carolina
August 17, 2022
1
STATE OF SOUTH CAROLINA ) IN THE COURT OF COMMON PLEAS
)
COUNTY OF LEXINGTON ) C.A. No.:
Doris Simmons, Mike Luongo and )

Barrett Black, )
)
Plaintiffs, )
)
vs. ) COMPLAINT
)
The Town of Swansea, Viola McDaniel, )
Margaret Harvey and John E. Brown, )
)
Defendant. )
____________________________________)
The Plaintiff above-named complaining of the Defendants herein alleges that:
1. Plaintiffs are residents and citizens of Lexington County, South Carolina.
2. Doris Simmons and Mike Luongo are members of the Swansea Town Council.
3. The Town of Swansea, South Carolina is a political subdivision of the State of
South Carolina located in the County of Lexington, South Carolina.
4. Viola McDaniel is the Mayor of Swansea and Margaret Harvey is the Town
Treasurer.
5. John E. Brown is a certified public accountant and practices in West Columbia,
South Carolina.
6. John E. Brown has been the Auditor for the Town of Swansea for approximately
four years.
7. In or about June of 2021, CPA John E. Brown as the Auditor for Swansea delivered
an independent auditors report. In that report it was stated over Three Million ($3,000,000.00)
dollars of assets are not properly accounted for and appear to be missing.
2
8. In addition to the foregoing the Auditor found the bookkeeping of the Town of
Swansea is not in accord with generally accepted accounting principles.
9. On or about August 10, 2022 the Town of Swansea was sent a certified letter, a
copy of which is attached. Both of the Town Council Members demanded that the Audited
Financial Statements be placed on the next Council Agenda and demanded that the Auditor come
and answer questions in regard to the missing Three Million ($3,000.000.00) dollars.
10. Barrett Black is a lifelong resident of the Town of Swansea. The Town of Swansea
is presently considering a rise in water rates and a rise in the tax billing. Mr. Black has a vested
financial interest in this matter in that if the Three Million ($3,000,000.00) dollars were allocated
a tax increase and a water increase should not be required.
11. A Town meeting was set for August 16, 2022. At that meeting, it was learned the
Auditor refuses to answer questions as to the audit report and will only answer written questions
which are provided to him in advance and to which he can answer in writing.
12. The two Plaintiffs who are Council Members have never had an opportunity to have
their questions answered in regard to the Three Million ($3,000,000.00) dollars.
13. The public has a right to know what happened to the missing Three Million
($3,000,000.00) dollars. The Mayor shut the meeting down of August 16, 2022 before the issue
of the audit was even discussed and she indicates she does not want to go back and review the
issues related to the Three Million ($3,000,000.00) dollars. The Mayor indicates we need to move
forward and not backwards. The Plaintiffs believe a backwards look is necessary in order to find
out what happened to the Three Million ($3,000,000.00) dollars of the Town’s assets and to
hopefully alleviate the need for an increase in water rates and an increase in taxes.
14. This is an action for declaratory judgment and injunctive relief.
3
15. This Court should inquire into the matter set forth herein and should require the
Town Auditor to appear and answer questions in public as to the missing Three Million
($3,000,000.00) dollars and as to why the missing funds were not discovered by him for the
previous three years.
16. The Court should inquire into the matter set forth herein and as best as possible
make a determination as to what person or persons are responsible for the missing Three Million
($3,000,000.00) dollars.
17. Upon information and belief, Margaret Harvey as the Town Treasurer is the person
not following generally accepted accounting principles and she should be ordered from this point
forward to immediately begin either following generally accepted accounting principles or no
longer hold the position as Town Treasurer.
18. The Mayor should be directed to immediately resume regular Council meetings and
to place the issue of the missing Three Million ($3,000,000.00) dollars on an agenda for open
discussion along with the Accountant.
19. Upon information and belief, the Auditor should be required to appear in a public
session to answer questions from the Council and the Mayor in regard to the whereabouts of the
Three Million ($3,000,000.00) dollars.
20. Attached hereto, is a copy of the letter of August 10, 2022 and a copy of the
Independent Auditor’s Report. As to the Independent Auditor’s Report attention is called to the
next to the last paragraph of page one of the letter from the Auditor indicating that all funds are
understated by at least Three Million Three Hundred Nine Thousand ($3,309,000.00) dollars.
21. Three Million Three Hundred Nine Thousand ($3,309,000.00) dollars is a huge sum
of money to a small Town such as Swansea, South Carolina. As the Mayor will not investigate
4
the whereabouts of the missing Three Million ($3,000,000.00) dollars, this Court should inquire
into the matters set forth herein and should conduct a hearing as to the whereabouts of the missing
Three Million ($3,000,000.00) dollars.
22. This Court should require the Accountant and the Town Treasurer to account for
the missing Three Million ($3,000,000.00) dollars and to provide information as best as possible
as to where the missing Three Million ($3,000,000.00) dollars went and who was responsible for
its disappearance.
23. The Court should issue its injunctive relief requiring adequate hearings and public
disclosures as to the missing funds. The Court should also enjoin improper accounting practices
from this point forward.
WHEREFORE, Plaintiffs pray for declaratory judgment declaring the rights of the parties
one to another; declaring the existence of the Three Million ($3,000,000.00) dollars; conducting a
hearing in order to secure factual information as to person or persons responsible for the missing
Three Million ($3,000,000.00) dollars; for an appropriate injunction requiring the Town of
Swansea to comply with generally accepted accounting practices; to require the Defendant John
E. Brown to appear in a Council meeting or before this Court to answer questions as to the missing
Three Million ($3,000,000.00) dollars; and for such other and further relief as this Court might
deem just and proper.
(Signature to follow on page 6)
5
MOORE BRADLEY MYERS LAW FIRM, P.A.
BY: s/ S. Jahue Moore

S. Jahue Moore (SC Bar #4063)
1700 Sunset Boulevard
P.O. Box 5709
West Columbia, South Carolina 29171
Phone: (803) 796-9160
ATTORNEY FOR THE PLAINTIFFS
West Columbia, South Carolina

August 17, 2022

Summons and Complaint 8-18-2022

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ELECTRONICALLY FILED - 2022 Aug 18 10:13 AM - LEXINGTON - COMMON PLEAS - CASE#2022CP3202829

STATE OF SOUTH CAROLINA ) IN THE COURT OF COMMON PLEAS

Doris Simmons, Mike Luongo and )

TO THE DEFENDANTS ABOVE-NAMED:

MOORE BRADLEY MYERS LAW FIRM, P.A.

BY: s/ S. Jahue Moore

ATTORNEY FOR THE PLAINTIFFS

Doris Simmons, Mike Luongo and )

The Plaintiff above-named complaining of the Defendants herein alleges that:

1. Plaintiffs are residents and citizens of Lexington County, South Carolina.

3. The Town of Swansea, South Carolina is a political subdivision of the State of

South Carolina located in the County of Lexington, South Carolina.

5. John E. Brown is a certified public accountant and practices in West Columbia,

Swansea is not in accord with generally accepted accounting principles.

a tax increase and a water increase should not be required.

their questions answered in regard to the Three Million ($3,000,000.00) dollars.

14. This is an action for declaratory judgment and injunctive relief.

previous three years.

forward to immediately begin either following generally accepted accounting principles or no

longer hold the position as Town Treasurer.

discussion along with the Accountant.

Three Million ($3,000,000.00) dollars.

Three Million ($3,000,000.00) dollars.

from this point forward.

deem just and proper.

(Signature to follow on page 6)

BY: s/ S. Jahue Moore

West Columbia, South Carolina

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