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Alex Murdaugh’s former firm sues him for allegedly funneling stolen money from them and clients


Jailed South Carolina lawyer Alex Murdaugh used fake bank accounts to siphon funds for years from his former firm and its clients, according to new lawsuit filed against the disgraced and disbarred attorney by his ex-partners.

The firm of Peters, Murdaugh, Parker, Eltzroth and Detrick alleges in a court filing that Murdaugh ‘developed a systematic scheme in which he diverted funds owed to the firm and to clients to a fictitious entity.’

The firm’s suit is the latest in the twisted saga of the once prominent family that involves unsolved murders and mystery deaths, alleged fraud claims, drug addiction and a botched suicide-by-hitman. 

It comes a month after Murdaugh resigned at the request of his firm, which his great-grandfather founded in 1910, after millions of dollars were found to have gone missing from its coffers. 

Alex Murdaugh faces a lawsuit from his former firm, which is accusing him of stealing money from the company and its clients. He is pictured above at his bond hearing at the Hampton County Jail  in September, where he faced charges of insurance fraud and filing a false police report

It comes a month after Murdaugh resigned at the request of his firm after millions of dollars were found to have gone missing from its coffers

 It comes a month after Murdaugh resigned at the request of his firm after millions of dollars were found to have gone missing from its coffers

The law firm filed a complaint Wednesday in Colleton County Court in South Carolina, which reads, ‘PMPED has determined that Alex Murdaugh was able to covertly steal these funds by disguising disbursements from settlements as payments to an annuity company, trust account or structured settlement for clients or as structured attorney’s fees that he had earned when in fact they were deposited into the fictious account at Bank of America.’

It continues to say that Murdaugh, ‘used firm assets in an unauthorized manner and without the consent or knowledge of his other shareholders to further his scheme to defraud.’

The firm’s lawsuit is seeking damages ‘for the costs of this action’ and is calling for Murdaugh to reveal where the stolen money went.

Murdaugh’s attorney, Jim Griffin, said in a statement: ‘This is a very sad development. Alex holds every member of the Peters, Murdaugh, Parker, Eltzroth, Detrick law firm in very high esteem. He has pledged his full cooperation to the firm.’

In a statement released on its website last month, PMPED addressed the controversy swirling around Murdaugh and wrote, ‘PMPED is a robust firm with skilled, experienced attorneys who represent our clients with a fierce commitment to obtaining justice. We were shocked and dismayed to learn that Alex violated our principles and code of ethics.’

It continues, ‘He lied and he stole from us. No member of PMPED was aware of Alex’s scheme. When we learned he betrayed our trust, we requested his resignation immediately. We have yet to speak to anyone who was aware of his addiction to opioids.’

Within a day of his ousting from the firm, Murdaugh was charged with insurance fraud and filing a false police report, stemming from a bizarre incident in which he claimed to be the victim of a roadside shooting.

Paul and Maggie Murdaugh (together left) were shot dead on June 7. Alex Murdaugh has since been accused of (center) orchestrating a separate shooting to kill himself with the help of a hitman, in a scheme to deliver a $10 million life insurance payout to his other son Buster (right) as the elder Murdaugh faced investigation over misallocated funds

Paul and Maggie Murdaugh (together left) were shot dead on June 7. Alex Murdaugh has since been accused of (center) orchestrating a separate shooting to kill himself with the help of a hitman, in a scheme to deliver a $10 million life insurance payout to his other son Buster (right) as the elder Murdaugh faced investigation over misallocated funds

His story quickly fell apart and he admitted that he himself had orchestrated the shooting, calling former client and distant cousin, Curtis ‘Eddie’ Smith, and asking him to shoot him in the head so that his surviving son, ‘Buster,’ 25, could claim his $10million life insurance.

Both Smith and Murdaugh have been charged in relation to the incident. Murdaugh’s lawyer said he is battling an opioid addiction that has ruined his finances.

Murdaugh’s currently ensnared in another legal battle over the mysterious death of a housekeeper who died on his property in 2018. Last Friday, the family of a housekeeper killed in a mysterious accident at Alex Murdaugh’s home have reached a deal with their original lawyer over a $4.3m settlement.

Gloria Satterfield, the Murdaughs’ long-time housekeeper and nanny, died in February 2018, aged 57, after tripping over the family dog at her employers’ hunting lodge.

Bland Richter announced that the Satterfield’s estate agreed to settle with attorney Cory Fleming, his law firm and his malpractice insurance company for an undisclosed sum.

Satterfield’s family were instructed by Alex Murdaugh to make a claim after Gloria’s death, and Murdaugh recommended Fleming. But he didn’t inform them that the lawyer was his former college roommate and son Paul’s godfather, it is claimed.

Gloria Satterfield

Alex Murdaugh

The sons of Gloria Satterfield (left), Alex Murdaugh’s (right) housekeeper who died in 2018, have reached a settlement with their original lawyer, who had allegedly failed to turn over a $4.3million life insurance payout to them  

Satterfield, 57, died after tripping over the Murdaugh family's dog at the family's hunting lodge (pictured) in South Carolina in February 2018

Satterfield, 57, died after tripping over the Murdaugh family’s dog at the family’s hunting lodge (pictured) in South Carolina in February 2018

Despite a $4.3 million settlement being agreed with an insurance company, the Satterfields say they were not made aware of that payout, and never saw a penny of that cash. It is said to have been paid into a business account controlled by Alex Murdaugh.

A separate settlement of $505,000 was agreed privately between Murdaugh and Satterfield’s family through Fleming, it is claimed, although the dead woman’s family assert that they never received any of that cash either.

Satterfield’s two sons alleged in a lawsuit filed last month that Murdaugh had convinced them to use Fleming as their attorney without revealing that he was a longtime friend of his, and then tried to snatch a $4.3million settlement away from them.

The lawsuit, filed on September 15, claimed breach of fiduciary duty and civil conspiracy.

According to a statement from Bland Richter to ABC News 4, Fleming and his firm agreed to pay Satterfield’s estate back all legal fees and expenses associated with the settlement that the lawyer had recovered, and which should have been paid to late housekeeper’s children but was, in fact, paid into a business account controlled entirely by Murdaugh.

The insurance carrier for Fleming and his law firm also agreed to pay to Satterfield’s estate their full policy limits of insurance.

Murdaugh also once tried to convince a friend of his son to use Fleming, again without revealing their friendship, as investigators tried to sort out who was driving a boat in a 2019 fatal crash, according to a lawsuit. Murdaugh’s son would eventually be charged.

Paul Murdaugh, 22, was killed along with his mother, Maggie, 52, in an unsolved shooting at the family’s home in June. Investigators have released few details about the killings beyond both were shot several times outside their Colleton County home, likely dying about an hour before Alex Murdaugh said he came home and discovered their bodies. 

Family murders, deaths, drug addictions, thefts and arrests: The riddles facing investigators who’ve now charged Alex Murdaugh 

2015: Teenager Stephen Smith dies

Smith was found on the side of the road. 

Cops investigating the double murder have also reopened the case into a 2015 hit-and-run of teen Stephen Smith (above)

Cops investigating the double murder have also reopened the case into a 2015 hit-and-run of teen Stephen Smith 

Police officially rule his death a hit-and-run but he had suffered blunt force trauma to the head 

His mother has since shared her belief that she thinks he was killed in a hate-crime because he was gay 

Case notes obtained by DailyMail.com revealed Paul’s older brother Buster was named multiple times in the investigation. 

Police wanted to know more about his relationship with Stephen 

Stephen’s mother said he had been having a ‘fling’. 

In a deposition years later, one of Paul’s friends said the family had ‘covered’ other killings up. 

He mentioned Smith’s death.  

2018: Murdaugh family housekeeper Gloria Satterfield dies

Murdaugh family housekeeper Gloria Sattlerfield dies

Murdaugh family housekeeper Gloria Sattlerfield dies

Gloria died after ‘falling’ down the stairs in the family house

The family gave her family $500.000 in a wrongful death settlement but it’s unclear why her death was ruled to be their fault. 

Alex Murdaugh was listed as the defendant in the lawsuit. 

Satterfield was only 57 when she died. 

She left behind a husband and children. 

Her death was also mentioned in the deposition by Paul Murdaugh’s friend.  

2019: Mallory Beach dies being thrown from boat driven by Paul Murdaugh

Mallory Beach, 19, died in February 2019

Mallory Beach, 19, died in February 2019 

Paul was charged afterwards because he’d been drinking and was behaving ‘belligerently’ that night. 

He had been released on bond.  

Other kids were on the boat but were unharmed.

One testified that they were scared to speak about the Murdaugh family because they knew how to ‘cover things up’. 

That boy named Stephen Smith and the housekeeper, and claimed Paul pushed her 

June 7 2021: Paul and Maggie are murdered 

The mom and son were found shot dead at the family home in Hampton, South Carolina. 

Alex Murdaugh says he found them  at the home. 

The medical examiner said the pair had been dead for an hour at most when he discovered them.  

Paul, 22

Margaret, 52

Alex’s son Paul, 22, (left) and wife Maggie, 52, (right) were found dead from multiple gunshot wounds on June 7 at the family hunting lodge 

Alex's father Randolph Murdaugh III died 'peacefully' at home three days after Maggie and Paul were found shot dead

Alex’s father Randolph Murdaugh III died ‘peacefully’ at home three days after Maggie and Paul were found shot dead 

June 10 2021:  Alex’s 81-year-old father Randolph Murdaugh III dies ‘naturally’ and ‘peacefully’ at home

September 3: Alex resigns from his law firm amid claims he misused funds

The firm has hired a forensic investigator to go through the accounts 

September 4: Alex calls 911 claiming he’s been shot in the head in a drive-by. 

He only had ‘surface’ wounds and was also able to call his brother

September 6: Alex resigns from his law firm

The South Carolina legal scion releases a statement confirming his resignation from the firm and announcing he has entered rehab 

He said: ‘I’m resigning from my law firm and entering rehab after a long battle that has been exacerbated these murders.’ 

September 16: Alex turns himself into police over insurance fraud scheme

Murdaugh handed himself over to cops in connection to insurance fraud scheme where he arranged his own killing so that his surviving son could collect $10 million payout.

He faces charges of insurance fraud, conspiracy to commit insurance fraud and filing a false police report.  



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