By Palmetto State Auditor Staff
Most people in South Carolina probably think public schools, colleges, and universities have tight controls in place, enough to keep waste or fraud at bay. The truth is, there are rules and watchdogs, but even then, money can slip through the cracks. Sometimes it takes years before anyone notices.
This isn’t about painting teachers or entire institutions as villains. The real point here is simple: even respected public organizations can miss the mark. Sometimes it’s a paperwork slip-up. Other times, it’s a handful of bad actors or complicated billing tricks. Either way, taxpayers end up footing the bill.
Real Cases, Real Gaps
You don’t have to dig too deep to find examples. Over the last decade, both federal and state investigators have uncovered cases in South Carolina where public money, especially in healthcare, went places it shouldn’t. Some of these cases are tied to our universities and public health programs.
Take the MUSC Billing Settlement from 2023. That year, University Medical Associates of the Medical University of South Carolina agreed to pay $81,000 to settle claims about overbilling for anesthesiology services. They didn’t admit guilt, but paid up to close the case. Settlements like this are pretty common in compliance disputes.
Back in 2011, there was the case of Jian-Yun Dong, a virologist linked to MUSC. He got indicted on federal charges for misusing grant money and making illegal campaign contributions through his biotech companies. The main focus was on his actions, not the university as a whole.
Fast forward to 2020 and “Operation Rubber Stamp”, a federal crackdown that charged over 40 people from South Carolina and Georgia in a massive healthcare fraud scheme. Offshore call centers, fake billing, millions in improper claims. It was a mess.
Then in 2025, more indictments rolled out. State and federal officials accused several people, including Vanessa Ragin-Boatright from Manning and Karen McClary from Kingstree, of running fraudulent billing schemes targeting public healthcare programs. Remember, these are only accusations for now, everyone gets their day in court.
Why Should Taxpayers Care?
Public schools, colleges, universities, and the medical systems attached to them run on taxpayer money, state funds, federal grants, Medicaid, Medicare, research dollars, you name it. When fraud or shady billing happens, here’s what’s at stake:
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- Money that should go to classrooms, patient care, or research gets drained away.
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- Trust in public institutions takes a hit, even if only a few people are to blame.
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- Next time, lawmakers might clamp down with stricter rules, making things harder for everyone who’s trying to do the right thing.
Transparency Matters
Let’s be clear: these stories don’t prove that South Carolina’s education or healthcare systems are rotten. What they show is that sunlight, independent audits, and frequent checkups are critical.
Most folks have no idea how complicated the money flow is, or how long it takes for investigations to catch up to the paperwork. By the time the public hears about a settlement or indictment, the money’s long gone.
Staying Vigilant
Holding institutions accountable doesn’t mean assuming the worst. It means asking smart questions, backing up solid audit work, and making sure agencies have the tools and independence to catch problems early.
If you’re a South Carolina taxpayer, the point isn’t to blame, it’s to stay alert. These cases are reminders that public money always needs watching, especially in the schools and hospitals we all rely on
