FBI investigating former Sea Pines VP accused of $1.4M embezzlement. Are charges coming?

Five months after a former Sea Pines Resort vice president was sued for allegedly embezzling more than $1.4 million, FBI officials have confirmed they are investigating the case, which could lead to criminal charges.

Jeffrey Kruse, former vice president of food and beverage for the resort, is accused of making fraudulent payments to Destination Hospitality Group, a shell company he created, for at least 12 years, according to a lawsuit filed by the Sea Pines Resort in March in the Beaufort County Court of Common Pleas.

Previously, an investigation had not been confirmed or denied by the bureau. However, Don Wood, spokesperson for the FBI field office in Columbia, told the Island Packet last week that the investigation is pending.

Beaufort County Sheriff’s Office spokesperson Capt. Bob Bromage told to the Island Packet that the FBI was opening an investigation in March.

If the FBI can build a case, it will be brought to the U.S. attorney general, according to Howard Stravitz, an associate professor of law at the University of South Carolina.

Once in the hands of the attorney general, a grand jury may decide if there is a basis for indictment. However, Kruse’s case could be far from any of those actions.

“You’re a long way off from an indictment,” Stravitz said. He said the FBI is likely involved because “it’s certainly possible that he broke state and federal law” by allegedly embezzling from the resort.

State and federal laws carry different penalties for violation, including fines and prison time. According to the the U.S. Sentencing Commission, if convicted of embezzlement, the “base offense level” carries a “maximum term of imprisonment of 20 years or more.”

The case is relatively new in terms of a federal investigation, Stravitz told the Island Packet.

RobMark, a Savannah-based public relations company representing the resort, was not aware of the bureau’s involvement when contacted by the Island Packet this week.

In a later statement, Director of Public Relations Karen Robertson said “we do not have anything new to share at this time.”

McNair Law Firm, representing the Sea Pines Resort, filed a lawsuit against Kruse in March seeking the total embezzled amount of $1,483,467.56, plus interest, punitive damages, and any additional embezzled funds that are discovered as the investigation continues, according to the suit.

In the suit, the resort is seeking an order to force Kruse to transfer the interest on a number of assets including: a parcel at Port Royal Plantation, a condominium at Palmetto Dunes Resort, a property at Hidden Lakes Circle in Bluffton, a 2007 Pioneer 197 Sport Fish boat, a 2006 Yamaha F150 TL boat motor, a 2010 Lexus GX 460 and a 2016 Lexus GX 460.

Kruse resigned from the resort in December 2017, according to the suit. The resort discovered suspicious invoices and payments to Kruse’s hospitality group in January, according to an affidavit.

A restraining order against Kruse was filed in late March, prohibiting him from entering the Sea Pines Resort or contacting any employees, according to online court documents.

Multiple phone calls to Kruse were not returned over three days.

This story was originally published August 14, 2018 at 11:44 AM.