PMPED files lawsuit against former attorney Alex Murdaugh Seeks to recover funds

The Hampton County-based law firm founded by his great-grandfather has filed suit against former attorney Richard Alexander Murdaugh.

On Wednesday, Oct. 6, the Peters, Murdaugh, Parker, Eltzroth and Detrick, PA law firm filed a civil suit in Colleton County Court of Common Pleas against Murdaugh, whose great-grandfather Randolph Murdaugh founded the firm in 1910.

According to a statement released on the same day of the filing, PMPED said that it had "sued former partner, Alex Murdaugh, in state court seeking to recover money he stole from the firm and clients of the firm."

The PMPED statement, and its court filing, alleges "that Murdaugh, a former partner, developed a systematic scheme in which he diverted funds owed to the firm and to clients to a fictitious entity. The filing states that for several years Murdaugh submitted false documentation to the firm and to clients that allowed him to funnel stolen funds into fraudulent bank accounts."

The PMPED statement adds, "Murdaugh, on occasion, used firm assets in an unauthorized manner and without the consent or knowledge of his former partners to further his scheme to defraud. The filing seeks discovery on where the ill-gotten funds went and if any of it is hidden away. In addition, the firm is requesting to know whether Murdaugh has entered into any agreements that involve future payments related to books, interviews or other publicity."

The suit, which lists causes of action as Conversion and Breach of Contract, was filed by Jamie L. Walters, a Columbia, S.C., attorney with Koon, Cook & Walters, LLC. PMPED is seeking actual and punitive damages.

Within hours of the court filings, a spokesperson for one of Murdaugh's attorneys, Jim Griffith, released the following 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."

Murdaugh is involved in with numerous civil suits, including being named a defendant in a wrongful death suit related to the fatal 2019 boat crash that killed Mallory Beach, as well as several ongoing criminal investigations. He is currently in an undisclosed drug rehabilitation center while on a personal recognizance bond for charges of insurance fraud, conspiracy to commit insurance fraud, along with filing a false police report.

The law suit complaint

"In early September 2021, PMPED discovered that Murdaugh had a bank account with Bank of America in the name of "Alexander Murdaugh d/b/a Forge", a ficticious entity that provides no services and makes no products for sale. It was further learned that Murdaugh used this account to convert monies owed to PMPED and its clients to his own personal use.

"PMPED has determined that 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 fictitious account at Bank of America.

"At the present time, PMPED has identified certain files in which Murdaugh utilized this scheme. Murdaugh knew that his actions would evade detection based on his experience with PMPED and its long-standing business relations with Forge Consulting, LLC ("FCL") in Columbia, S.C.

"For many years, FCL has provided valuable services to some PMPED clients; those services include brokering structured settlements and annuities as well as the creation of specialized trusts to protect client assets. FCL is an outstanding company that has earned a respected reputation across the country. In addition, Murdaugh was aware that FCL has provided PMPED attorneys with financial advice that included structured attorney's fees.

"Murdaugh was able to use this business relationship in conjunction with his fictitous and misleading business name to draft checks from PMPED's client trust account made payable to "Forge" or "Forge Consulting, LLC" and deposit those checks into his personal Bank of America account. PMPED was unaware of this scheme until Sept. 2, 2021.

"This discovery prompted a review of prior settlements of cases Murdaugh resolved. This review showed numerous checks made payable to "Forge" or "Forge Consulting, LLC" but the files did not contain the normal documentation that is required to perform the services offered by FCL.

"PMPED consulted with FCL on Sept. 2, 2021, concerning the checks discovered during its review of Murdaugh's files. On Sept. 2, 2021, FCL confirmed that it had not provided any services for the clients identified by PMPED. Moreover, FCL stated that it had never assisted the Defendant with the structuring of any attorney's fees. FCL was not assisting the Defendant in his scheme and had no knowledge of the improper use of its name or his conduct.

"On the morning of Sept. 3, 2021, Murdaugh was confronted with the information PMPED discovered through its review and discussions with FCL. Murdaugh admitted to converting monies owed to PMPED and its clients to his own personal use. PMPED requested the immediate resignation of Murdaugh on Sept. 3, 2021, which was received that afternoon. On Sept. 4, 2021, PMPED notified the Hampton County Sheriff's Office and the South Carolina Law Enforcement Division of the suspected criminal activity of the Defendant. Upon information and belief, that investigation is ongoing.

"On Sept. 6, 2021, PMPED notified the South Carolina Supreme Court's Office of Disciplinary Counsel of the suspected ethical violations of the Defendant. Upon information and belief, that investigation is ongoing.

"PMPED immediately retained a forensic accounting firm to begin a thorough review of all financial activities of Murdaugh while employed at PMPED. This review is ongoing. PMPED has reimbursed all client trust accounts who have suffered a known loss as a result of Murdaugh's action while he was an employee of PMPED and working on behalf of clients of PMPED. It is anticipated that additional information may become known that could lead to more losses to PMPED as it protects its clients' interests."