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LAKE CITY, S.C. (WBTW) — Lake City residents had the opportunity to hear details in relation to a forensic audit that is being conducted on the city’s finances, including the $9,000 use of a limo and the city falling victim to a $1.5 million phishing scam.

The meeting had over one hundred residents in attendance. It started with the city administrator Malik Whitaker letting residents know what they should expect.

Brandon Waldren was the forensic auditor brought in to look at how Lake City was spending money during the fiscal years between 2021 and 2024.

A forensic audit is an examination of financial records and transactions that is supposed to investigate and document fraud, misconduct, or other financial crimes for potential use in legal proceedings.

Waldren said he looked at everything from credit card transactions to bank accounts, while even looking into trips taken during that time. Waldren also detailed the use of a limo for $9,000 that he said was not compliant with the cities policies.

Other policy issues that were brought to resident’s attention included purchase orders not being used and conflicts of interest for contracts handed out by the city.

Waldren said, at one point, the city fell victim to a phishing scam through an outside vendor that was hacked. That cost Lake City $1.5 million dollars, and they were only able to get around $800,000 back.

After the meeting, residents like Michael Nero did not feel there were enough answers provided.

“This isn’t what any of the citizens were expecting,” Nero said. “They held back a lot of information that we were looking forward to getting into detail about, that he didn’t recover.”

Nero said he has concerns for other residents, like one woman who asked about her water bill, and were the higher rates that the city put in place being used to get back money the city lost.

“You can see, the citizens were on edge and there were a lot that showed up because of their water bill,” Nero said. “This lady stated this right here was about her water bill. This lady said she spent $700 from 5 to 6 months on a water bill and she’s a senior citizen. I really don’t think they understand the depth of what the city is really going through and what citizens are facing.”

City administrator Malik Whitaker said this meeting was to be transparent, and that everyone learned all the information at the same time.

“We’re looking at all areas to improve,” Whitaker said. “We’re looking at how departments are set up. We’re looking at how the budgeting process is used. We want to bring excellence to the city government.”

The full audit is expected to be completed within the next two weeks. Count on News13 for updates.

Eric Cooper is a multimedia journalist at News13. He joined the team in September 2024 and covers stories in the Pee Dee. He is a native of Cades in Williamsburg County and a proud graduate of Kingstree Senior High School and Benedict College. You can read more of his work here.

From the scenic waterfront views in "The Friendliest City in South Carolina" to lakeside camping in a quiet state park, South Carolina might be best known for its stunning Atlantic coastline access, but the state's many lakes are nothing to scoff at, either. Nestled between the cities of Columbia and Greenville, you'll find a prime example of a South Carolina lake city — the delightfully named town of Prosperity. Situated on the banks of Lake Murray, Prosperity offers small-town charm, along with a rich history and even award-winning food.

Located about a 40-minute drive from Columbia and about a 75-minute drive from Greenville, Prosperity is easily accessible for a relaxing weekend getaway — or even a day trip or special meal out if you're coming from one of these metropolises. To get here from further away, the nearest commercial airport is Columbia Metropolitan Airport, 39 miles away, which is serviced by several major airlines providing flights throughout the southeast U.S.

Enjoy delicious cuisine in Prosperity

South Carolina is known as "The Birthplace of Barbecue," and it wouldn't be a trip to the Palmetto State without sampling some. Don't skip out on a visit to Hawg Heaven Barbecue while you're in Prosperity — and come ready for a feast. At this family-owned barbecue joint, you'll find fall-off-the-bone-tender ribs, pulled pork, and quintessential barbecue side dishes like potato salad, mac and cheese, and slaw. Come for the lunch buffet deal, but know before you go that Sundays (post-church) can get busy. Thankfully, there is also a carry-out option.

If barbecue isn't your thing, grab a table at Roma's House of Pizza, where you can order Italian and Greek dishes, along with other American classics like wings and subs. Roma's is a local gem known for friendly and helpful service in addition to tasty cuisine and competitive prices. If you've got a sweet tooth (or a hankering for caffeine), you'll want to be sure to visit The Blend, a charming and welcoming coffee shop where you can sip on a cup of freshly brewed joe or indulge in a cookie, cinnamon roll, scone, cheesecake, or other sweet delight. (Time your visit on a Saturday, when there are also delectable doughnuts available.)

Explore this charming lake city's history

For a small town with a population barely over 1,000 people, Prosperity nonetheless has a vibrant history that remains a source of much local pride today. Originally, the town was named Frog Level, with this unusual moniker's provenance being a source of many myths. It likely comes from the town's size, low elevation, and large nearby frog population, but one urban legend tells a far stranger tale of a very intoxicated man, a frog infestation, and a big misunderstanding. Since 1873, it's been known as Prosperity — but relics of the town's early days are still standing.

Take a walk through the town square, where you'll see an independent drugstore that was first built in 1895, an antique gazebo and clock, and other historic structures. Plus, don't miss the opportunity to wander through the town's residential streets, where you'll spy numerous gorgeous 100-year-old houses that have been lovingly maintained. After your time in Prosperity, if you still haven't gotten enough of charming towns in the greater Lake Murray vicinity, you can always extend your trip with a pit stop in nearby Irmo, a Columbia suburb full of cafes and trails on the banks of Lake Murray.

LAKE CITY, S.C. (WPDE) — The City of Lake City will hold a public information meeting of the city council to allow the community to learn the results of an independent, forensic audit.

The forensic audit was launched after the city discovered a $2 million budget deficit and other financial discrepancies.

Lake City Administrator Malik Whitacker said in October that auditors have reviewed payroll and grant records and issued recommendations to strengthen procedures.

Whitaker said that missing bank and credit card records have been located and are currently being verified. City staff are collaborating with auditors to finalize the contract and bid documentation.

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Whitacker said that the city’s annual financial audit, which is required for certain state funding, cannot be completed until the forensic audit is finished.

Florence County council members in October allowed a loan of up to $1 million to help Lake City avoid filing for bankruptcy due to major financial problems.

At one point, the South Carolina Treasurer's Office (STO) was withholding $406,000 in local option sales tax funds from the city.

The General Assembly requires the STO to withhold the funds from municipalities for delinquent financial reporting.

Lake City cut 34 positions last year and had to redo its budget to trim $2 million in spending.

Officials said the independent forensic auditor will present:

This forensic audit is separate from and concurrent with the City’s regular annual financial audit.

The City Administrator will moderate the meeting to ensure an orderly and respectful process.

It is open to the public, and a recording of the presentation and the report will be made available following the meeting.

The meeting is set to take place on Tuesday, Jan. 20, at 6:30 p.m. at the Lake City Senior Center.

LAKE CITY, S.C. (WPDE) — For the first time in months, Lake City residents and city leaders heard directly from a forensic auditor.

The city continues to struggle with a more than $2 million budget deficit.

The city has yet to submit a budget, and questions have been swirling about how it got to this point.

Residents packed the Lake City senior center Tuesday night, with many searching for answers to a financial crisis years in the making.

A forensic audit examined city finances from July 2021 through June 2024.

Auditor Brandon Walden with Eide Bailly told the crowd he found waste and mismanagement, but no evidence of fraud.

Walden explained that “Waste” in local government can include careless spending, poor oversight, or misuse of resources.

According to the audit, the city spent more money than it brought in, with losses tied to external fraud, city events, travel expenses, and unused vehicles.

One of the largest losses stemmed from a phishing scam.

A vendor was hacked, and the city sent 1.5 million dollars to the wrong account.

Federal investigators recovered about $800,000, leaving $750,000 lost.

The audit also flagged questionable travel spending, including a $9,000 limousine on an out-of-state trip.

“What I can tell you specifically is there were some transactions from those travels that did not comply with the city’s policies," Brandon Walden, Eide Bailly auditor, said. "For example, there was a trip to Washington, D.C., where a limo was involved. That limo was $9,000. When it came to the $9,000 dollar limo, as I just mentioned earlier, any one transaction of more than $5,000 dollars needs to go out for bid or needs to be approved by the city council. From the support document that I received, I did not see any written approval.”

Auditors reviewed bank accounts, credit cards, payroll, and time sheets.

Another major concern, purchase orders were missing entirely, a basic safeguard in public budgeting.

Residents and council members questioned the auditor, but many left feeling frustrated.

“There are questions that remain outstanding, and people want to know," Brian Pragton, a resident, said. "They want to know not just that they have been heard, but that there is real accountability. I know sometimes the pretense of accountability can be given, but maybe not authentic accountability. I think that’s what people want.”

“We still don’t know, and I think we probably won’t know," Jamie Daniels, another resident, said. "My question was about $3 million that vanished, and we still don’t have a clue where most of it went.”

City administrator Malik Whitaker, who took office last October, says the city can recover if policies are followed.

“The city had policies, has policies, and if leaders follow them, then the city will be in a good financial situation and a good government," Malik Whitaker, city administrator, said.

A full audit report is expected within two weeks, as investigators finalize remaining details.

For now, residents say they’re waiting for solutions and accountability.

“We are just hoping we can solve this problem and get it behind us," Daniels said.

The audit also raised concerns about possible non-compliance with covid recovery funds.

Those funds were originally intended for multiple projects, but were later used for revenue replacement, the details note for quote “premium pay for eligible employees."

That portion of the audit remains under review.

Lake City says the full video of Tuesday’s meeting will be posted to its Facebook page later this week.

LAKE CITY, SC (WMBF) - The Lake City administrator said he has been on the job for nearly three months, but it feels like a year.

Right away, Malik Whitaker was tasked with getting to the bottom of the city’s financial issues: $2.5 million in debt to vendors.

At a Tuesday night city council meeting, Whitaker detailed the root causes of the city’s financial issues.

Whitaker said it was not an isolated accounting error, but rather a systemic breakdown.

Whitaker said spending happened without authorization, bills were not reported when incurred, cash reality was unknown, and budgets did not reflect real obligations.

He said the general ledger is the master record that shows how much the city has, where it came from and what the city spent.

Required accounting functions, including monthly reconciliations and timely financial close procedures, did not occur, he said.

This means the general ledger did not reflect financial reality.

“Fund balance could not be relied on,” Whitaker said. “Leadership lacked accurate, current, financial information.”

Whitaker then spoke on the unauthorized spending.

“Invoices were not reported when received, and accounts payable aging was not maintained,” Whitaker said.

An aging report refers to the order in which bills are paid and includes information such as who the city owes, how much it owes and for how long.

He said warning signs were present, but not addressed in a timely manner.

The debt is now down to between $1.8 million and $1.9 million.

Efforts are now going toward creating more accurate financial records as the city operates in a “financial recovery mode.”

The city adopted a budget of more than $10 million in October.

The budget also saw the city cut 21 positions and increase its water and sewer rates.

The city is holding a public informational meeting on Jan. 20 to go over a targeted forensic audit.

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