S.C. Code Ann. § 33-56-140 – Investigations; notice of noncompliance; grounds for injunction; rejection of filings; hearings and appeals

(A) Upon his own motion or upon complaint of any person, the Secretary of State may investigate any charitable organization, professional fundraising counsel, professional solicitor, or commercial co-venturer to determine if it has violated the provisions of this chapter or has filed an application, or other information required by this chapter, which contains false or misleading statements. The Secretary of State may subpoena or audit persons and require the production of books, papers, and other documents to aid in the investigation of alleged violations of this chapter.
(B) If a charitable organization, professional fundraising counsel, professional solicitor, or commercial co-venturer fails to file a registration application, statement, report, or other information required to be filed with the Secretary of State by this chapter, or otherwise violates the provisions of this chapter, the Secretary of State must notify the delinquent charitable organization, professional fundraising counsel, professional solicitor, or commercial co-venturer of this fact by mailing a notice by registered or certified mail, with return receipt requested, to its last known address. If the required registration application, statement, annual report, assurance of voluntary compliance, or other information is not filed, or if the other existing violation is not discontinued, within fifteen days after the formal notification or receipt of the notice, the Secretary of State may assess an administrative fine not to exceed two thousand dollars for each separate violation against the charitable organization, professional fundraising counsel, professional solicitor, or commercial co-venturer.
(C) In addition to other actions authorized by law, the Secretary of State, if he has reason to believe that one or more of the following acts or violations listed below has occurred or may occur, may bring an action to enjoin the charitable organization, professional fundraising counsel, professional solicitor, commercial co-venturer, or other person from continuing the act or violation, or doing any other acts in furtherance of it, and for other relief as the court considers appropriate:
1. (1) a person knowingly and wilfully operates in violation of the provisions of this chapter;
2. (2) a person knowingly and wilfully makes a false statement in any registration application, statement, report, or other information required to be filed by this chapter;
3. (3) a person fails to file a registration statement, annual financial report, or other document required to be filed by this chapter;
4. (4) a person is using in the solicitation or collection of contributions any device, scheme, or artifice to defraud or to obtain money or property by means of false pretense, representation, or promise;
5. (5) the officers or representatives of a charitable organization, professional fundraising counsel, professional solicitor, or commercial co-venturer refuse or fail, after notice, to produce records of the organization; or
6. (6) the funds raised by solicitation activities are not devoted to the charitable purposes of the charitable organization.
(D) Any registration application, statement, report, or other information required to be filed with the Secretary of State pursuant to this chapter by a charitable organization, professional fundraising counsel, professional solicitor, or commercial co-venturer which contains false or misleading statements may be rejected by the Secretary of State and returned to the submitting party without being filed.
(E) A person that is assessed an administrative fine or enjoined from any solicitation activity for any violation of this chapter, or that is denied registration has thirty days from receipt of certified notice from the Secretary of State to pay the fine or request an evidentiary hearing before an administrative law judge. A person who fails to remit fines or request a hearing after the required notice is given and after thirty days from the date of receipt of certified notice has elapsed may be enjoined from engaging in further charitable solicitation activities in this State and may have its registration suspended pending final resolution. A person may appeal an adverse ruling from an evidentiary hearing to the circuit court. An appeal to the circuit court is governed by the standard of review provided in the Administrative Procedures Act and case law interpreting that provision.
(F) The Secretary of State may exercise the authority granted in this section against a person that operates under the guise or pretense of being an organization exempted by the provisions of Section 33-56-40 or 33-56-50 but is not in fact an organization entitled to the exemption.