Rep. John Jenrette (D-S.C.), implicated in the FBI Abscam "sting" investigation, will be sued by the state in connection with alleged irregularities in a time-sharing vacation resort on Edisto Island.
Attorney General Daniel McLeod and the state Real Estate Commission are expected to file a civil suit in the Colleton County Court of Common Pleas Tuesday against Jenrette and his partner, C. L. Fielden.
Jenrette and Fielden are the two largest investors in Oristo Properties, which sells time-sharing leases on condominium townhouses on Edisto Island, off the atlantic coast 50 miles south of Charleston.
Under this arrangement, a family can take a two-week vacation at a specified time once a year for 20 years.
According to the Real Estate Commission, about 100 families spent about $250,000 buying shares in eight condominium townhouses on the island.
State officials would not comment on complaints they have received against Oristo.
However, the suit asks the court to prohibit further sales and to require the defendants to either pay back their clients or live up to the contracts they sold.
A 1978 state law regulating the time-sharing industry requires sellers to set aside money to reimburse purchasers if control of the resort should be lost.
The complaint charges that Jenrette and Fielden failed to deposit all funds received from the sale of vacation time-sharing leases with an escrow agent pending expiration of the period in which the purchasers had the right to rescind the contract.
It also contends Jenrette and Fielden failed to register with the Real Estate Commission when sales were begun July 1979 and failed to provide all purchases with a fully completed copy of their contracts.
Oristo, according to the suit, also "made various representations which it knew or should have known were false, deceptive or misleading," involving use of pool, tennis and beach club facilities.
The suit will ask the court to place Oristo in receivership and to seek an accounting of all funds Jenrette and Fielden have received from the development.
Jenrette's attorney, Edward I. Markendorff, said that receivership would be "definitely in the benefit" of all concerned and would help to avoid "panic situations."
"The congressman has been working toward that end," he said.
Markendorff said he has asked that a trustee be set up to handle the time sharing contracts.