Murdaugh flunked polygraph exam about $6 million in undisclosed thefts, fed prosecutors say

More than $6 million in money stolen by disgraced lawyer Alex Murdaugh is unaccounted for, and he failed a polygraph test about where it is, federal prosecutors said in a federal court filing on Tuesday afternoon.

The disclosures were made in a motion by federal prosecutors that seeks the maximum penalty for Murdaugh for his federal financial crimes.

“More than $6 million in (stolen) proceeds” remains unaccounted for, federal prosecutors said in their motion.

In a separate filing Tuesday, federal prosecutors also revealed that all is not finished with their investigation into Murdaugh’s finances. There is an ongoing grand jury investigation involving “allegations of criminal activity against others,” prosecutors said. They did not give detail, except to say that the allegations involve “another attorney.”

In their six-page federal motion about the missing $6 million, prosecutors also revealed that in return for Murdaugh’s telling the full truth to the FBI about his thefts, they had made a deal with Murdaugh and his attorneys last September that prosecutors would recommend a federal sentence for his financial crimes to run concurrently, or at the same time, as the 27-year sentence for state financial crimes that Murdaugh received last year in state court.

But now, because Murdaugh gave deceptive answers on his polygraph test and “breached the plea agreement,” federal prosecutors are asking U.S. Judge Richard Gergel to void their promise to ask for a concurrent sentence.

If Gergel agrees, that would open the door for Gergel to impose a federal sentence consecutive, or following, Murdaugh’s serving his 27-year state sentence.

The maximum penalty for Murdaugh’s federal financial crimes is a total of 150 years in prison — three 30-year sentences and three 20-year sentences for the 22 counts of federal financial crimes. Last fall, Murdaugh pleaded guilty to those federal crimes, including wire fraud and money laundering, in a hearing before Gergel.

Murdaugh, 55, is due to be sentenced for those federal crimes in Charleston on Monday, April 1, by Gergel.

Already, Gergel in an order filed March 15 indicated he will likely give Murdaugh a sentence stiffer than is called for in a still-confidential pre-sentencing report.

Exactly what Gergel, who has a reputation as a tough sentencing judge for white collar crimes, has in mind will be made clear on Monday.

As part of his guilty plea last September, Murdaugh agreed to be polygraphed and to tell the truth.

But after a polygraph session and four separate interviews with the FBI and the U.S. Attorney’s Office, prosecutors now believe Murdaugh did not tell the truth, “despite ... sessions during which the Government gave Murdaugh every opportunity to be fully truthful and forthright,” the government’s motion said.

“The FBI examiner determined that all of Murdaugh’s responses during the polygraph examination indicated deception,” the motion said.

The filing did not specify the exact questions to which prosecutors believe he gave deceptive answers. Prosecutors have filed a motion with Gergel asking that material related to Murdaugh’s alleged deception, “including the polygraph examination report and four FBI reports of Murdaugh’s interviews,” be sealed from public view.

“The Government decided to polygraph Murdaugh on issues related to hidden assets and the involvement of another attorney in Murdaugh’s criminal conduct. On Oct. 18, 2023, an FBI polygraph examiner administered a polygraph examination of Murdaugh.... the examiner determined that there was deception indicated on both series, meaning Murdaugh failed the examination,” the motion said.

“Murdaugh has failed to cooperate as required under the plea agreement and has failed a polygraph examination administered at the Government’s request.... Murdaugh has thereby deprived the Government of the benefit of its bargain. The Government requests that the Court find Murdaugh breached the plea agreement and relieve the Government of its obligations,” the government’s motion said.

“We are working on a reply to this 11th-hour filing by the government,” said Jim Griffin, one of Murdaugh’s attorneys. State Sen. Dick Harpootlian, D-Richland, also represents Murdaugh.

“In exchange for Murdaugh’s concessions, provided Murdaugh cooperated and complied with all of the conditions of the plea agreement, the Government agreed to recommend that the Court impose a sentence to be served concurrent to any state sentence imposed for the same conduct.,” the government’s motion said.

Last November, Murdaugh pleaded guilty in state court to nearly two dozen state financial crimes. State Judge Clifton Newman sentenced Murdaugh to 27 years in December.

Evidence in Murdaugh’s financial crimes cases shows that over two decades, Murdaugh stole millions from unsuspecting clients in wrongful death and personal injury cases in which he had settled for or won millions of dollars. He also stole from his law partners and from the heirs of housekeeper Gloria Satterfield, who had died of fatal injuries in a fall at the Murdaugh house.

Murdaugh carried out his thefts with the help of Hampton banker Russell Laffitte and now-disbarred lawyer Cory Fleming, both longtime friends of Murdaugh. Laffitte and Fleming are now in prison after having been convicted of Murdaugh-related crimes.

In March 2023, Murdaugh was convicted in state court of murdering his wife, Maggie, and son Paul. Prosecutors argued that Murdaugh killed his wife and son to divert attention from imminent disclosure of his growing financial troubles, which included millions of dollars in debts.

He is now serving two consecutive life sentences in state prison for those murders. He is appealing the convictions.

Various prosecutors have put the amount of money stolen by Murdaugh at $8 million to $10 million. Last year, a state prosecutor indicated that more than $1 million in stolen money might be unaccounted for.

The $6 million figure in Tuesday’s court filing is the highest estimate yet of unaccounted for stolen money.

Lie detectors are not allowed to be used in trials except in rare circumstances. However, they are a common behind-the-scenes tool used by federal law enforcement and are often mentioned in plea agreements, where prosecutors insert a condition that a defendant must pass a polygraph to get all the benefits of a plea deal.

At Murdaugh’s guilty plea hearing last fall before Gergel, lead federal prosecutor Emily Limehouse told the judge that Murdaugh was admitting to some $9 million in thefts from “dozens of victims” who included his law firm, personal injury clients and “others who trusted him.”

But, she said at that time, the government believes the total amount of his thefts is more like $10.5 million.

The fourth-generation, now-disbarred lawyer comes from a dynastic legal family that once dominated the political establishment of the 14th Judicial Circuit in the Lowcountry.

This story was originally published March 26, 2024 at 4:02 PM.