Federal lawsuit against Alex Murdaugh details new allegations in housekeeper's death
A new federal lawsuit has been filed against suspended South Carolina attorney Richard “Alex” Murdaugh, and court documents are revealing new allegations involving the Hampton County man at the center of a multitude of criminal and civil cases.
An amended complaint against Murdaugh was filed on May 11 in U.S. District Court for the District of South Carolina by Nautilus Insurance Company, which paid out claims in the 2018 death settlement of Murdaugh’s housekeeper, Gloria Satterfield, that was allegedly stolen by Murdaugh.
More:Latest on Alex Murdaugh: $4.3 million confession of judgment filed in Satterfield suit
Named as respondents in the suit are Murdaugh, suspended S.C. attorney Cory Fleming, and his former law firm of Moss & Kuhn, P.A.; Hampton County banker Chad Westendorf, and his bank of employment, Palmetto State Bank; and the United States of America.
Nautilus, a Scottsdale, Arizona-based insurance carrier, alleged that, like the Satterfield family, it too was a victim of Murdaugh’s alleged fraud and conspiracy, stating in its suit that “the scope of Murdaugh’s depravity is without precedent in Western jurisprudence.”
The federal suit alleged fraud against Murdaugh, and conspiracy to commit fraud against all of the defendants (except the United States), and seeks to regain money lost in this alleged financial scheme. Nautilus had provided a $5 million umbrella insurance package to Murdaugh, which covered property, automobiles and boats, but the complaint does not specify exactly how much it paid out in this case.
The suit also seeks the court’s permission to overrule Murdaugh’s attorney-client privilege asserted in a previous lawsuit brought against Murdaugh by the Satterfield estate in order for Nautilus to comply with a Feb. 8 federal grand jury subpoena.
The United States of America is named as a respondent because the United States subpoenaed records from Nautilus regarding coverage it issued to Murdaugh with Grand Jury Subpoena Number 2022-0064. The federal complaint indicated that a federal grand jury investigation is now underway against Murdaugh, an emerging new development amid an abundant background of state grand jury investigations involving the accused attorney.
Satterfield was reportedly injured in a Feb. 2, 2018, “trip and fall” incident at Murdaugh’s Colleton County home, Moselle, and died on Feb. 26 of that year. Murdaugh is implicated in a scheme in which he allegedly convinced her heirs, two sons, to use his friend and former college roommate, Fleming, to sue his insurance companies, including Nautilus, after which he and Fleming allegedly stole the settlement. Murdaugh and Fleming allegedly arranged for Westendorf, vice president at Palmetto State Bank in Hampton, to serve as the conservator for the estate.
The South Carolina Law Enforcement Division (SLED) is currently investigating the death of Satterfield as a possible criminal case, among other homicide cases connected to Murdaugh in some way.
In addition to previous allegations made by the Satterfield estate in state court, in the federal lawsuit, Nautilus makes some new allegations, stating that:
- Murdaugh “pressured” Nautilus to settle the claim, threatening a suit for bad faith against Nautilus if it refused to pay policy limits.
- Murdaugh was “abusive” toward the Nautilus adjuster handling the claim and demanded Nautilus pay its full policy limits, threatening that if the case against him were filed and went to trial, he would admit liability and the judgment would be substantial.
- “Immediately following Satterfield’s fall on Feb. 2, 2018, Murdaugh rushed to the scene, arriving before EMS. On March 29, 2018, Murdaugh stated that Ms. Satterfield briefly regained consciousness during which time she stated that Murdaugh’s dogs had caused her to fall. This statement was heard by no one else and is contradicted by Ms. Satterfield’s later statement to hospital staff that she had no idea what made her fall.”
- “On March 29, 2018, Murdaugh claimed Ms. Satterfield was at his property, not to perform work for Murdaugh and his family, but to collect a check for work performed for someone else, thus avoiding a worker’s compensation defense… In fact, she was there to perform work herself.”
- “Murdaugh stated to multiple third parties in Hampton County that he was liable for Gloria Satterfield’s fall and ultimate death, an admission against interest that all but ensured that there could be no challenge to liability, and securing his ability to force Nautilus to contribute settlement funds that Murdaugh and the Co-conspirators stole.”
- “On or about March 22, 2018, Murdaugh stated to an independent adjuster—with the intent that Nautilus would rely on his representation— that shortly after the purported fall, he heard Ms. Satterfield say that Murdaugh’s dogs had caused her to fall. Ms. Satterfield made no such statement and later told hospital staff she did not know why she had fallen… Murdaugh repeated the statement on March 29, 2018, during an interview with Bryant McGowan, an insurance investigator, again with the intent that Nautilus would rely on the representation.”
- “Murdaugh made these false statements knowing they were false and intending that Nautilus would rely on them. Specifically, he sought to mislead Nautilus and force it to contribute to a 'settlement' that was not real.”
Murdaugh has been indicted on numerous charges and is facing a civil suit in state court, involving the Satterfield death settlement case. His alleged accomplice, Fleming, has also been indicted. Westendorf is connected to the case as the bank conservator but has not been charged with any crimes.
There are now 10 civil lawsuits – nine in state court, one in federal – directly naming Murdaugh as a defendant, while several other ongoing legal actions are connected to him in some way.
Murdaugh is currently facing a total of 82 criminal charges – 79 by the state grand jury and three charges from a local indictment – in connection with an alleged decade-long, multi-county financial crime spree.
Both Murdaugh and Fleming have been suspended from the practice of law by the South Carolina Supreme Court, pending the outcome of these criminal and civil cases.
Fleming is currently out on bond for his charges, while Murdaugh remains jailed in Richland County’s Alvin S. Glenn Detention Center on a $7 million bond.
More Murdaugh underage drinking allegations emerge
A recent legal filing in connection with a wrongful death suit against Murdaugh makes further, more detailed allegations of underaged drinking involving family members of Alex Murdaugh.
On May 4, attorneys for Morgan Doughty filed an affidavit in Hampton County Court of Common Pleas. Doughty is a survivor of the February 2019 Beaufort County boat crash that left Mallory Beach, 19, of Hampton County dead. The affidavit was filed in the wrongful death suit that Beach’s mother and estate filed in March 2019 against Murdaugh and other parties allegedly responsible for selling six underage boaters alcohol.
The boat involved was registered to Murdaugh and his late son, Paul Murdaugh, was allegedly driving at the time of the crash. Allegations of Murdaugh and his late wife, Maggie, knowingly allowing and “condoning” alcohol use by their 19-year-old son have been made in previous court filings, and the recent affidavit reinforces those accusations.
The affidavit attests that Doughty was Paul Murdaugh’s longtime girlfriend, who spent countless hours with him and his family and had “first-hand knowledge” of the young man’s alcohol consumption, as well as his parents’ “knowledge and facilitation” of his heavy drinking.
The five-page affidavit further alleged that Paul Murdaugh consumed alcohol on an “almost daily” bases, regularly drinking to the point of being “grossly intoxicated,” and would operate vehicles and boats under these conditions. It added that his parents knew about this and were often present or would even provide alcohol to Paul and his underage friends.
The affidavit includes a list of 21 examples of videos that Doughty made that she says support her allegations, including dates and locations.
Attached to the affidavit are 21 exhibits of photos captured from those videos that allegedly show Paul and Alex Murdaugh drinking in a variety of situations, including on a boat.
Paul was indicted on three felony counts of boating under the influence in this case, had pleaded not guilty, and was awaiting trial when he and his mother, Maggie, were shot and killed at their Colleton County estate on June 7, 2021. That case remains under investigation by the S.C. Law Enforcement Division, which has announced no arrests.
Read Morgan Doughty's full affidavit below: