COLUMBIA — A Shocking Tale of Corporate Misconduct
In a case that’s shocked many, a former energy executive has just been sentenced to a year behind bars for lying about a disastrous nuclear power project in South Carolina. The event marked a significant chapter in what many are calling the biggest business failure in the state’s history. The project in question? The V.C. Summer Nuclear Station, located in the rather quiet area of Jenkinsville, not too far from Columbia.
The Fallout from Lies
The sentence was handed down on November 20 as part of a prolonged federal investigation into some seriously shady corporate behavior surrounding the plan to add two reactors at the facility. Jeffrey Benjamin, who once sat as a vice president at Westinghouse Electric Co., faced the music for knowingly misleading the public and stakeholders about the timeline of the nuclear project. Back in September 2016, he had clear knowledge that the proposed completion dates of August 2019 and August 2020 were completely unrealistic, yet he chose to keep that information to himself.
The repercussions were huge. By failing to disclose the truth to SCANA Corp., the main project proponent, Benjamin contributed to the company filing inaccurate securities disclosures. This misinformation allowed SCANA to impose rate hikes on its customers, pushing the $9.8 billion project forward while executives pocketed hefty salaries.
Judge’s Strong Words
During the sentencing, U.S. District Judge Mary Geiger Lewis didn’t mince words. She wrapped up a four-hour hearing filled with tension, stating that this situation was both “serious and significant.” The judge emphasized the necessity for accurate information, remarking that stakeholders like company shareholders and ratepayers needed to make informed decisions. Her message was clear: Corporate executives can’t just hide behind their desks and expect to get off the hook for misconduct.
Benjamin tried to argue for a probationary sentence, citing a serious heart condition that he claimed would be worsened by incarceration. However, the judge wasn’t persuaded, maintaining that federal prison has the right medical care he needs. Besides, $100,000 in fines and two years of supervised release after his prison term only add to the penalties he faces.
A Botched Project and Its Aftermath
The scandal doesn’t end with Benjamin. SCANA and its partners tossed the nuclear project into the gutter back in 2017 after a barrage of delays, cost overruns, and ultimately, Westinghouse’s bankruptcy. In an ironic twist of fate, all this left electric customers stuck with the burden of a project that never produced even a single watt of power.
In 2019, SCANA became a subsidiary of Dominion Energy, a power company from Virginia that now operates in several states, including South Carolina. The repercussions of the project have echoed through time, as the fallout from the failed nuclear initiative continues to haunt those involved.
More Executives in the Hot Seat
Benjamin isn’t flying solo on this front. The former SCANA CEO, Kevin Marsh, was sentenced to two years in prison in 2021 after being found guilty of defrauding customers. He was also hit with a hefty repayment of $5 million and a $200,000 fine. Stephen Byrne, the then-chief operating officer, wasn’t spared either; he faced 15 months in prison and had to pay back $1 million, along with a $200,000 fine. There were even charges against a Westinghouse executive, Carl Churchman, who got a much lighter sentence of probation after lying to the FBI.
A Cautionary Tale
This troubling saga is a potent reminder of how vital it is for corporate entities to operate with integrity. If nothing else, the serious consequences faced by Benjamin and his colleagues serve as a clear warning that no one is above the law—especially when it comes to financial accountability and honest communication. It seems like a hard lesson learned, but one that might help bolster trust in corporate governance moving forward.
