Judge again denies Murdaugh access to seized funds for murder appeal costs

Publish date: 2024-06-02

COLUMBIA, S.C. (WCIV) — A judge has rejected for a second time Alex Murdaugh's attorneys' request for more money from their incarcerated client's seized retirement funds.

Judge Daniel Hall on Friday, June 9, issued an order denying again Murdaugh's attorney Jim Griffin's motion to take an additional $160,000 from the remaining balance of Murdaugh's 401(k).

The parties have provided an ample record on which the court relies to deny the motion for reconsideration," Hall wrote in his two-sentence order Friday.

Hall originally denied the request on May 12. Griffin on May 22 moved for Judge Hall to reconsider, claiming the judge hadn't given the request enough thoughtful consideration following a May 3 hearing on the matter.

Judge Hall must approve any transactions involving Murdaugh's encumbered funds, which he placed under the control and protection of attorneys John T. Lay and Peter McCoy through a receivership order in November 2021.

Lay and McCoy were tasked with recovering and preserving Murdaugh's assets under that protective order sought by people suing Murdaugh in civil court who worried Murdaugh and his family were hiding and liquidating assets to avoid paying damages and fines.

However, the receivership order did not apply to Murdaugh's seven-figure 401(k), the balance of which wasn't technically under Murdaugh's control. The money was not accessible to Lay and McCoy unless and until Murdaugh asked an investment firm controlling his 401(k) to liquidate the account.

With Lay and McCoy's endorsement, Judge Hall in October 2022 allowed Murdaugh to cash out the retirement fund so he could pay legal bills associated with his then-upcoming murder trial. The divvying arrangement saw Murdaugh keep $600,000 from the account, with Lay and McCoy vested control of the remaining balance — approximately $400,000 — for the receivership.

Weeks after a jury in March 2023 found Murdaugh guilty of murdering his wife, Maggie, and son, Paul, his attorneys filed a request to access an additional $160,000 from the retirement funds to appeal the convictions, saying all of the original $600,000 was exhausted during the six-week murder trial.

Lay and associate Jordan Crapps vehemently opposed this request in a May 3 hearing, saying the original order for the $600,000 was explicitly narrow in its scope with no leeway for additional funds to be withdrawn by Murdaugh.

The receivership lawyers also argued granting Murdaugh more money defied the spirit of the protective order, which was intended to put Murdaugh's many swindling victims on equal footing as they sought recovery.

Eric Bland, an attorney for one such family of victims — the Satterfields — argued during the hearing Murdaugh being given access to additional funds would allow him to revictimize those he'd already stolen from by metaphorically skipping the line.

Griffin countered with an argument that Murdaugh had a Constitutional Sixth Amendment right to hire the legal counsel of his choosing and used specious reasoning that the money was "untainted," thus there should be no objection to Murdaugh accessing more of the retirement money.

The "untainted" description was a reference to Murdaugh's egregious theft of nearly $9 million over the course of a decade from 2011-2021, the imminent discovery of which prosecutors say motivated Murdaugh in June 2021 to murder his wife and son as a morbid ruse to stave off personal and financial ruin.

The degree to which Murdaugh supplemented his income through his ongoing thefts and embezzlements meant not a single cent of any money he has is "untainted," Bland and the receivership attorneys argued.

The receivership lawyers went on to argue there is ample precedent showing Sixth Amendment protections do not apply to appeal cases, making Griffin's argument of a Constitutional issue moot. Judge Hall agreed.

Griffin during the hearing had said he and his co-counsel simply wanted to get paid and have a right to be fairly compensated for their work. Judge Hall then speculated about the possibility of Murdaugh needing to hire a public defender for the appeal process if the takeaway was that Griffin and company might not be getting paid if they couldn't access the additional funds.

However, it doesn't appear Griffin, Harpootlian and their respective colleagues are leaving Murdaugh. Griffin, Harpootlian, and colleagues Maggie Fox and Phil Barber in early June filed notice with the U.S. District Court they intend to represent Murdaugh in his pending federal money laundering and fraud conspiracy case.

It should be noted, however, the federal case against Murdaugh is not expected to go to trial, meaning court costs may not be as high as they otherwise would. Griffin has said Murdaugh, despite an initial "not guilty" plea, is very likely to change that plea soon, indicating ongoing plea agreement negotiations between Murdaugh and federal prosecutors.

As of this writing, Murdaugh remains in a South Carolina prison serving his two life sentences. Griffin and co-counsel Dick Harpootlian have filed a notice of appeal in that case but are awaiting delivery of transcripts from the Colleton County murder trial before proceeding.

The Appeals Court has given the Murdaugh murder trial court reporters responsible for the transcripts a deadline of June 17 to finish their work after an extension was granted in May.

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