PMPED files legal action against former lawyer Alex Murdaugh seeking to recover funds

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The Hampton County-a law firm founded by his great-grandfather filed a complaint against a former lawyer Richard Alexandre Murdaugh.

At Wednesday October 6, the law firm Peters, Murdaugh, Parker, Eltzroth and Detrick, in Pa., filed a civil action in Colleton County Court of Common Pleas against Murdaugh, whose great-grandfather Randolph Murdaugh founded the company in 1910.

According to a statement issued the same day as the filing, PMPED said it had “sued its former partner, Alex murdaugh, in state court seeking to recover money he stole from the company and the company’s customers. “

The PMPED statement and its court record allege “that Murdaugh, a former partner, developed a systematic scheme in which he embezzled funds owed to the firm and clients to a shell entity.” The record indicates that for several years Murdaugh submitted false documents. to the business and customers who allowed it to transfer stolen funds to fraudulent bank accounts. “

The PMPED statement added, “Murdaugh has on occasion used company assets in an unauthorized manner and without the consent or knowledge of his former partners to further his fraud scheme. The file seeks to know where the ill-gotten funds went and, if so. of it is hidden. In addition, the company asks if Murdaugh has made any deals involving future payments related to books, interviews or any other advertising. “

The lawsuit, which lists the causes of action such as conversion and breach of contract, was filed by Jamie L. Walters, a Colombia, South Carolina, lawyer with Koon, Cook & Walters, LLC. PMPED seeks actual and punitive damages.

Hours after the court filings, a spokesperson for one of Murdaugh’s attorneys, Jim griffith, issued the following statement:

“This is a very sad development. Alex holds every member of the law firm Peters, Murdaugh, Parker, Eltzroth, Detrick in the highest regard. He has pledged his full cooperation to the firm.”

Murdaugh is involved in numerous civil lawsuits, including being named an accused in a wrongful death lawsuit related to the 2019 fatal boat crash that killed Mallory Beach, as well as several ongoing criminal investigations. He is currently in an undisclosed drug rehab center while on personal bail on charges of insurance fraud, conspiracy to commit insurance fraud and filing a false report. police.

The legal complaint

“In the beginning September 2021, PMPED discovered that Murdaugh had a bank account with Bank of America on behalf of “Alexandre murdaugh d / b / a Forge, “a fictitious entity that does not provide any service or manufacture any product for sale. It was further learned that Murdaugh was using this account to convert monies owed to PMPED and its customers for his personal use. .

“PMPED determined that Murdaugh was able to covertly steal these funds by disguising the disbursements of settlements as payments to an annuity company, trust account or structured settlement for clients or as structured attorney fees that he had won when in fact they were deposited into the phantom fund. account to Bank of America.

“At present, PMPED has identified some files in which Murdaugh has used this ploy. Murdaugh knew his actions would escape detection based on his experience with PMPED and his long-standing business relationship with Forge Consulting, LLC (“FCL”) in Colombia, South Carolina

“For many years, FCL has provided valuable services to certain PMPED clients; these services include the brokerage of structured settlements and annuities as well as the creation of specialized trusts to protect client assets. FCL is an exceptional company that has Acquired a Respected Reputation Across the Country In addition, Murdaugh knew that FCL provided PMPED lawyers with financial advice that included structured legal fees.

“Murdaugh may have used this business relationship in conjunction with his fictitious and misleading business name to issue checks from the PMPED client’s trust account payable to” Forge “or” “Forge Consulting, LLC“and deposit these checks in his personal account Bank of America Account. The PMPED was not aware of this regime until September 2, 2021.

“This discovery prompted a review of previous settlements of cases resolved by Murdaugh. This review showed numerous checks made payable to” Forge “or”Forge Consulting, LLC“But the files did not contain the normal documentation required to perform the services offered by FCL.

“PMPED consulted FCL on September 2, 2021, regarding the verifications uncovered during his review of Murdaugh’s files. At September 2, 2021, FCL confirmed that it did not provide any service to customers identified by PMPED. Further, FCL stated that it never helped the defendant structure the attorney’s fees. FCL was not assisting the defendant in his scheme and had no knowledge of the misuse of his name or his conduct.

“The morning of September 3, 2021, Murdaugh was confronted with the information PMPED uncovered during its review and discussions with FCL. Murdaugh admitted to converting amounts owed to PMPED and its clients for his personal use. The PMPED called for Murdaugh’s immediate resignation on September 3, 2021, which was received this afternoon. At September 4, 2021, PMPED informed the Hampton County Sheriff’s Office and the South Carolina Law Enforcement Division of the alleged criminal activity of the defendant. Based on information and belief, this investigation is ongoing.

“At September 6, 2021, PMPED informed the Office of the Disciplinary Council of the Supreme Court of South Carolina alleged ethical violations by the defendant. Based on information and belief, this investigation is ongoing.

“PMPED immediately retained the services of an accounting firm to begin a thorough review of all of Murdaugh’s financial activities while he was employed at PMPED. This review is ongoing. PMPED has repaid all trust accounts of clients who 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 expected that additional information will become known, which could result in more losses for PMPED, as it protects the interests of its clients.


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