Former South Carolina damage legal professional Alex Murdaugh, convicted in March of murdering his spouse and son, has been indicted on 22 federal counts of defrauding purchasers, laundering cash, and diverting insurance coverage proceeds into his private account.
Murdaugh arrange a pretend checking account within the title of an organization that he introduced as a structured insurance coverage settlement program. He funneled private damage settlements by way of the account however used the cash for private acquire, the indictment and the U.S. Legal professional’s workplace mentioned Wednesday.
Additionally, he conspired with one other legal professional to defraud his housekeeper’s household out of life insurance coverage proceeds after her suspicious dying in a fall at Murdaugh’s residence in 2018. Murdaugh advisable that the housekeeper’s property rent the legal professional, Cory Fleming, to symbolize them and file a declare in opposition to Murdaugh to gather from his house owner’s insurance coverage insurance policies.
Murdaugh’s insurance coverage corporations settled the property’s declare for $505,000 and $3,800,000. The indictment alleges that Murdaugh and Fleming then conspired to siphon the funds, disguised as “prosecution bills,” for their very own private enrichment.
Fleming, a longtime pal and Murdaugh’s faculty roommate, pleaded responsible this week to fraud costs in reference to the scheme, in line with prosecutors and courtroom information. Fleming now faces a most penalty of as much as 5 years in jail and a high quality of as much as $250,000, the U.S. Legal professional mentioned.
In one other a part of the scheme, the grand jury discovered that from 2011 to 2021, Murdaugh conspired together with his banker, Russell Laffitte, to commit wire fraud and financial institution fraud. Murdaugh and his legislation agency requested Laffitte to function conservator for a variety of purchasers, and Laffitte collected greater than $350,000 in charges.
As a part of the scheme, the legislation agency made settlement checks payable to “Palmetto State Financial institution.” The checks have been then delivered to Laffitte, who then paid off Murdaugh’s private loans and used the cash for Murdaugh’s private bills and money withdrawals.
Laffitte was convicted in November of fraud and conspiracy to commit wire and financial institution fraud, for his function on this scheme. He’s at the moment awaiting sentencing.
Picture: Murdaugh, middle, and his attorneys at sentencing in March. (AP)
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