Holman out after 22 years as Beaufort Black Chamber CEO. Was legal feud a factor?

The board of the Beaufort County Black Chamber of Commerce has voted to terminate its contract with long-time CEO and president Larry Holman following a legal feud over alleged financial mismanagement that’s lasted almost three years.

Reached Monday, Leroy Gilliard, a member of the Chamber’s board, told the Beaufort Gazette and Island Packet that “Larry’s contract was terminated,” but said he would not provide additional information at this time.

Holman, who has headed the chamber for 22 years, referred questions to Gilliard.

Gilliard and fellow board members Bernard McIntyre and John McCoy sued Holman in November 2020.

The lawsuit alleged Holman mismanaged money, paid himself a salary that had not been authorized, hid financial documents and improperly fired them and appointed his own board. They argued that Holman’s alleged mismanagement had cost the organization millions in potential funding while threatening its not-for-profit status.

The lawsuit also said Holman hired family members as staff and independent contractors.

Holman has steadfastly denied the allegations, arguing in court documents that the 24-year-old organization has, in fact, become stronger under his leadership. Gilliard, McIntyre and McCoy, Holman said, did not even have standing to file the lawsuit because they had resigned or transitioned off the board at the time it was filed.

In February, Judge Marvin H. Dukes III dismissed the lawsuit, ruling Holman had satisfied his previous order to produce financial records for 2017, 2018, and 2019, and to recognize the Chamber’s board and obey its decisions. The board members filed the lawsuit to compel Holman to comply with those requests.

Board members voted last week to terminate Holman’s contract, Gilliard said. The contracts with Holman’s son and daughter-in-law also were terminated, Gilliard said.

Holman was present for the vote.

At this time, Gilliard said, “I can’t give any information.”

The mission of the chamber, started in 1999, is “economic empowerment of African American communities” through networking, business development, marketing assistance, loans and business referrals. Located on Bladen Street in Beaufort, the Chamber also runs the Gullah Art Gallery and Gullah Jazz Cafe.

After allegations of financial irregularities surfaced in court records, the city of Beaufort and Beaufort County suspended funding for the organization.

The Chamber held a general membership meeting on Jan. 28 to vote in new board members.

According to the latest tax return on file for the fiscal year ending 2021, the chamber reported total revenue of $725,988 with expenses totaling $847,509. This left a deficit of $121,521. In that year, the form shows that Holman’s compensation was listed as $126,000. Court records show that the board has previously ordered Holman to reduce his salary from $126,000 a year to $80,000.

In the prior fiscal year ending in 2020, total revenues were $1.2 million with total expenses listed as $712,885 for a difference of plus $567,604. Holman’s 2020 compensation was listed at $109,980.

In court records from the 2020 lawsuit, board members cited three examples in which they said Holman’s “non-compliant behaviors” prevented or held up $2.6 million in funding, from public and private sources, for the chamber.