SC TREASURER INDICTED

Sanford Suspends Thomas Ravenel, Who Faces Cocaine
Charges

As he crisscrossed South Carolina campaigning for the job of state
treasurer last year, Thomas Ravenel was buying cocaine and using it
with friends, state and federal officials say.

And, they say, it has been going on ever since. Gov. Mark Sanford
suspended the Republican constitutional officer after he was indicted
Tuesday by a federal grand jury on cocaine charges. If convicted, the
Charleston real estate developer faces $1 million in fines and 20
years in prison.

"Given the grave nature of these charges and what is alleged in this
indictment, we're left with no choice but to suspend Treasurer Ravenel
immediately," Sanford said Tuesday afternoon. "These are obviously
very serious allegations that we're constitutionally bound to act
upon, and they'll ultimately be decided by the courts."

U.S. Attorney Reginald Lloyd said Ravenel, 44, has been indicted on
one count of "conspiracy to possess cocaine with the intent to
distribute." Although they would not say how much cocaine was
involved, the penalties given for the offense correspond to charges
for less than 500 grams of cocaine. "I want to be clear that while the
investigation is ongoing, we are not alleging at this point and do
have no evidence at this point, to suggest that Mr. Ravenel is selling
cocaine," Lloyd said. "Rather, we allege that Mr. Ravenel purchased
cocaine for himself and provided the drugs to others for their
personal use."

Ravenel had cocaine in his possession since at least late 2005 and "up
to the point of indictment," Lloyd said. He would not comment on
whether Ravenel had or used cocaine on state property. Because he
handles state funds, officials said, the FBI was notified about the
investigation. State Law Enforcement Department Chief Robert Stewart
said Ravenel emerged as a participant in an ongoing cocaine sting in
Charleston County. The investigation found that Ravenel was buying
powder cocaine and sharing it with "an undisclosed number" of people.

The charges stem from incidents that date back to at least 2005, the
year after Ravenel's failed Senate bid and before his March 30, 2006,
filing to run for treasurer. He defeated longtime Treasurer Grady
Patterson to win the job. State officials said they were investigating
Ravenel at the time he was elected, but the case was not at a point
they could bring charges. Ravenel, the son of former congressman and
state senator Arthur Ravenel, came out of nowhere to become a
political force in the 2004 U.S. Senate race. Although he lost the
Republican nomination to Jim DeMint, he quickly became the favorite
for the treasurer's job.

Although he has denied it, Ravenel was widely considered a possible
primary challenger to U.S. Sen. Lindsey Graham in 2008. But this will
likely end that speculation.

"In only a few months, Thomas Ravenel has gone from spoiled rich kid
buying his way into office to common street criminal," said South
Carolina Democratic Party Chairwoman Carol Fowler. "He is an
embarrassment to the state and an embarrassment to the office of
treasurer. It's a shame that Grady Patterson, an absolutely honorable
man and a true patriot, was replaced by Thomas Ravenel as state treasurer."

Katon Dawson, chairman of the state Republican Party, called Sanford's
suspension of Ravenel "proper," but said this was not a public
corruption case. "To me, it looks like a private issue and a legal
matter for a public official," Dawson said.

In his first six months in office, Ravenel's main issue has been
trying to convince the Legislature that he shouldn't have to keep
office hours on Saturday, as the Constitution mandates. In April, he
was named the South Carolina chairman for the Rudy Giuliani
presidential campaign. He lost that job Tuesday as well.

"Our campaign has no infor-mation about the accusations pending
against Mr. Ravenel," said Giuliani Political Director Mark Campbell.
"Mr. Ravenel has stepped down from his volunteer responsibilities with
the campaign." Indicted alongside Ravenel on Tuesday was Michael L.
Miller, 25, of Mount Pleasant. Miller lists his occupation as
"deejay." Lloyd would not comment on the relationship between Miller
and Ravenel.

The governor's office said Tuesday night that Sanford would appoint an
interim replacement "as soon as possible."