Alex Murdaugh Signs Plea Deal Admitting to Stealing From Clients

Sept. 19, 2023, 3:55 PM UTC

Alex Murdaugh, the disgraced Hampton, S.C., lawyer convicted in March of murdering his wife and son, has admitted to all charges in a 22-count indictment alleging that he stole from his former law firm’s clients and his deceased house keeper’s family.

Murdaugh is pleading guilty to one count of conspiracy to commit wire fraud and bank fraud, one count of bank fraud, five counts of wire fraud, one count of conspiracy to commit wire fraud, and 14 counts of money laundering.

The agreement was filed on Monday in the US District Court for South Carolina. His change of plea hearing will be held on Thursday,

The agreement requires Murdaugh to cooperate fully with federal, state, and local law enforcement agencies and to submit to polygraph examinations, if the government demands them. If he refuses or fails, the government’s obligations under the agreement may become null and void.

Murdaugh also agreed not to challenge the forfeiture of property worth at least $9 million.

In exchange for the plea, the government agrees to recommend that Murdaugh’s sentence be served concurrent to any state sentence imposed for the same conduct. But the recommendation will be in lieu of a motion for a downward departure for providing substantial assistance to authorities under the US Sentencing Guidelines.

According to prosecutors, Murdaugh redirected clients’ settlement funds to himself by, among other things, claiming funds held in the law firm’s trust account as attorneys’ fees, falsifying expenses, and intercepting insurance proceeds meant for clients.

Murdaugh conspired with Russell Lafitte—a banker at Palmetto State Bank, whom he asked to serve as conservator for numerous personal injury clients—to divert client money. Lafitte was convicted on related charges in November 2022.

Prosecutors also say that Murdaugh conspired with Cory Fleming, a lawyer based in Beaufort, S.C., to defraud his former housekeeper’s estate out of insurance settlements following her death in February 2018.

Gloria Satterfield died after she fell down a set of stairs on Murdaugh’s property. The fall was reportedly caused by Murdaugh’s dogs.

Murdaugh encouraged Satterfireld’s sons to retain Fleming to file a claim against him, so that they could collect from his homeowner’s insurance policies.

The insurers, Lloyd’s of London and Nautilus Insurance Group, eventually paid millions to resolve the claims, but Satterfield’s estate didn’t receive a dime. The funds were instead diverted to accounts controlled by Murdaugh and Fleming, according to the indictment.

Fleming pleaded guilty to one count of wire fraud in May.

Murdaugh is challenging his murder convictions. He is represented by Griffin Humphries LLC and Richard A. Harpootlian PA.

The case is United States v. Murdaugh, D.S.C., No. 9:23-cr-00396, 9/18/23.

To contact the reporter on this story: Holly Barker in Washington at hbarker@bloombergindustry.com

To contact the editors responsible for this story: Rob Tricchinelli at rtricchinelli@bloombergindustry.com; Nicholas Datlowe at ndatlowe@bloombergindustry.com

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