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Lawyer turns himself in, charged in crazy insurance fraud scheme

Sep 17, 2021

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In a very unique court case, a South Carolina lawyer turned himself in Thursday in connection to an alleged $10 million insurance fraud scheme that was supposed to end in his death.

Alex Murdaugh is charged with insurance fraud, conspiracy and filing a false police report. After about five hours, Murdaugh was released from custody on a $20,000 bond.

The story goes back all the way to June 7, when Murdaugh discovered his wife and son had been shot to death in their home. According to defense attorney Dick Harpootlian, this sent Murdaugh on a downward spiral.

Earlier this month, Harpootlian said Murdaugh decided to die. However, instead of killing himself, Murdaugh allegedly hired Curtis Smith, a former client of Murdaugh, to kill him via gunshot. Officials say that shot missed its target only grazing Murdaugh instead.

Smith was also in court Thursday. A judge set his bond at $55,000 for a list of charges, including assisted suicide, assault and battery of a high aggravated nature, pointing and presenting a firearm, insurance fraud, and conspiracy to commit insurance fraud. He was arrested on Tuesday.

According to state police, the fraud comes in because Murdaugh hired Smith with the goal of getting Mudaugh’s surviving son a $10 million life insurance benefit.

In her decision to release Murdaugh, Magistrate Tonja Alexander noted he had no prior criminal record before this insurance fraud case. She didn’t think he would be a risk to the community.

“The only violence he has ever been involved in is this, which was to have himself executed,” Harpootlian said. “He’s not a danger to the community. He’s only a danger to himself.”

Prosecutors had argued for higher bond and GPS monitoring. “Sometimes those who have everything and who are suffering a possible fall from grace are actually more of a concern than a hardened criminal,” said Creighton Waters, attorney with the South Carolina Attorney General’s Office.

Murtaugh could be sentenced to up to 20 years in prison if he is convicted on all three charges related to the alleged insurance fraud.

As for the killings of his son and wife, those have remained unsolved. Murdaugh’s lawyers have said he is adamant he had nothing to do with their deaths.

The State Law Enforcement Division has now been asked to open six investigations involving the Murdaugh family, including the June killings and the 2018 death of their housekeeper in their home.