After lawsuit, Black Chamber ‘categorically denies’ claims of nepotism, misuse of funds
In a press release issued Christmas Eve, the Beaufort County Black Chamber of Commerce “categorically” denied what it called “contrived allegations of misuse of funds, cronyism and nepotism” stemming from a recent lawsuit filed by board members against president Larry Holman.
Citing its mission of “economic empowerment of African American communities and small businesses,” the organization said it has always used funding as allocated and called the lawsuit “flippant.”
The statement appears to be the latest salvo in a conflict between Holman and several board members of the 21-year-old organization.
Board members Bernard McIntyre, John McCoy and Leroy Gilliard sued Holman last month alleging that Holman improperly fired them, appointed his own board — including his wife as chair — misused money and hid financial documents, jeopardizing the organization’s tax-exempt status, court filings say.
Last week, a judge ordered Holman to dismantle his “improperly constructed” board of directors, reinstate the old board and provide them with copies of the organization’s financial records within a week.
The Thursday press release did not directly address the order or organization’s board. It did outline some of the chamber’s programs.
“We possess a ‘do whatever it takes’ attitude in executing our mission and have brought in the best, most competent staff that we believe will enable us to carry it out; including their ability in executing our various programs such as grants to local businesses, programs for home repairs and in working with lenders in providing loans to local small businesses, among many others,” the release said.
The chamber runs financial literacy programs, culinary classes, mentorship programs and has helped area businesses apply for Paycheck Protection Program loans during the COVID-19 pandemic, the release said.
The chamber’s Gullah Jazz Café, run out of the organization’s Bladen Street address in Beaufort, is “not for-profit” and is run as part of the larger chamber, it said.
City of Beaufort officials have accused Holman of operating the restaurant without a business license, saying it does not fall under the chamber’s tax-exempt umbrella, according to previous reporting by The Island Packet and Beaufort Gazette. Officials said the group is in the process of obtaining a license.
The chamber is “not a private, family-owned business,” the release said, in an apparent reference to complaints of nepotism raised in the board members’ suit.
Holman appointed his wife board chairperson earlier this year, and there is evidence Holman took this action “without Board input or approval,” the judge’s order in the lawsuit states. The matter is not yet resolved. Holman’s son also works for the chamber.
In addition, the lawsuit alleges Holman gave himself an excessive salary raise without the board’s knowledge.
In the release, the chamber denied it has misused any funding.
The group has received tens of thousands of dollars in accommodations tax money and grants from local governments in recent years, and Beaufort County temporarily halted its support of the organization following the lawsuit. County council members have moved to reinstate it, but the allocation has yet to be approved.
“We have always used our funding as allocated. That would be the precise reason why we continue to receive the funding each and every year; because it must be shown that it is used properly,” the chamber said in the release.
Holman declined an interview request, referring a reporter to his lawyer Clifford Bush III, who did not immediately respond to a message left Thursday afternoon.
The lawsuit against Holman is still pending, according to Beaufort County online court records.
