RETIRED FBI AGENT INDICTED BY FEDERAL GRAND JURY

Retired FBI Agent and Surfside Beach Town Administrator Facing Seven Criminal Counts

FLORENCE, SC - Clyde William Merryman, a retired Special Agent with the Federal Bureau of Investigation and Town Administrator for Surfside Beach, South Carolina, has been indicted by a federal grand jury in Florence on seven criminal counts alleging mail fraud and theft of honest services, concealment of a material fact from a U.S. agency, falsification of records in a federal investigation, and obstruction of justice. According to the allegations contained in the indictment, the charges stem from an investigation in which Merryman participated in his capacity as an FBI Special Agent, known as the “Spa” investigation, which was opened in or around January 2002 by Merryman and which related to Asian owned spas in the Myrtle Beach, South Carolina area.

United States Attorney Gretchen C.F. Shappert of the Western District of North Carolina, at Charlotte, made today’s announcement. The Office of the U.S. Attorney for the District of South Carolina has recused itself from participating in the prosecution. Joining Shappert in today’s announcement is Brian D. Lamkin, Special Agent in Charge of FBI Operations in South Carolina.

The indictment, returned today, Wednesday, April 26, 2006, by a federal grand jury in Florence, South Carolina, was accompanied by an official summons for the appearance of Clyde William Merryman, 60, of Myrtle Beach, South Carolina, to make an initial appearance at a later date and answer to the charges. Merryman has been charged with three counts of mail fraud and theft of honest services and aiding and abetting same, one count of concealment of a material fact from a U.S. agency, two counts of falsification of records in a federal investigation, and one count of obstruction of justice. If convicted, Merryman faces maximum statutory penalties of 20 years’ imprisonment and a $250,000 fine as regards counts one, two, and three; a maximum statutory penalty of five years’ imprisonment and a $250,000 fine as regards count four; maximum statutory penalties of 20 years’ imprisonment and a $250,000 fine as regards counts five and six; and a maximum statutory penalty of ten years’ imprisonment and a $250,000 fine as regards count seven.

According to the indictment, Merryman allegedly launched an FBI investigation into Asian owned spas in the Myrtle Beach, South Carolina area in early 2002, which spas were allegedly using Korean women who were illegally in the United States, to engage in acts of prostitution. The indictment alleges that the “Spa” investigation was conducted by the FBI jointly with the Myrtle Beach Police Department. The indictment further details allegations that Merryman developed a personal relationship with one of the subjects of the “Spa” investigation, a person with regard to whom there was probable cause to believe that she had violated federal criminal laws, and which relationship Defendant Merryman wilfully did not reveal, and in fact concealed, it is alleged.

The case is being prosecuted by Assistant United States Attorney Jill W. Rose of the Criminal Division of the U.S. Attorney’s Office for the Western District of North Carolina. The U.S. Attorney’s Office for the District of South Carolina has recused itself from involvement in the prosecution.

An indictment is merely an accusation and defendants are presumed innocent until proven guilty beyond a reasonable doubt at trial.

US v. Clyde William Merryman
Criminal No.
District of South Carolina

Clyde William Merryman
DOB: 3/26/46
4728 National Drive
Myrtle Beach, SC 29579
Employed as Town Administrator for Surfside Beach, South Carolina