Alex Murdaugh case: Court orders compensation for son Paul's boat crash victims from killer dad's assets

WALTERBORO, SOUTH CAROLINA: Nearly half of convicted killer Alex Murdaugh’s remaining assets will be directed toward compensating the victims of his son Paul Murdaugh’s tragic 2019 boat crash, as per a court order issued on Monday, February 5.

The court-appointed special referee, Walt Tollinson, ruled on the distribution, with the family of 19-year-old Mallory Beach, who lost her life in the boat crash, slated to receive a 29% share of the assets.

Aftermath of Paul Murdaugh’s tragic boat crash

Paul, then 19, was at the helm when the boat collided with a bridge, leading to the fatal incident. An additional 16% of Murdaugh’s assets will go to others who survived the accident, including Morgan Doughty, Paul’s then-girlfriend.

The total value of the assets, generated through the sale of Murdaugh's land, farm equipment, and liquidation of his 401(k), amounts to just under $1.8 million, as reported by the Post and Courier. Part of this sum will also be allocated to compensate Tollinson for his services.

Fatal boating lawsuit exposes Alex Murdaugh’s years-long corporate fraud

Murdaugh, 55, was convicted of the shooting deaths of his wife, Maggie, and son Paul in June 2021. Despite seeking a new trial, he was recently denied this request. The legal saga began with the Beach family's initial lawsuit in March 2019, aiming to hold Paul and other family members accountable for the fatal boating accident.

This lawsuit unraveled a chain of events that exposed Murdaugh’s extensive corporate fraud over several years.

Unraveling Alex Murdaugh’s facade

During Murdaugh’s trial, prosecutors highlighted the unraveling of his seemingly charming life, citing theft and alleged drug use as factors that may have led him to commit the heinous acts against his wife and younger son. A court order in November 2021 seized Murdaugh’s finances, prompted by concerns raised by the Beach family's attorney about his ability to responsibly manage his money.

According to Tollinson’s decision, the second-largest share of the assets, 24%, will go to Arthur Badger, a client from whom Murdaugh stole. The convict's former law firm will receive 14% to compensate for damages incurred while repaying former clients.

A portion of the law firm’s cut will be passed through to other financial victims. The firm’s new eponym, Johnny Parkey, will receive a 15% cut, after claiming that he lent Murdaugh $477,000 in 2021, which was never repaid.

Despite these allocations, claims against Murdaugh’s assets exceed $100 million. In his final order, Tollinson expressed mindfulness of the hurt and devastation caused by the suspect, acknowledging the complexities of weighing claims from both the boat crash victims and those financially and legally exploited. “In a perfect world, there would be unlimited funds,” he penned.

Alex Murdaugh's ongoing lawsuits

In addition to his murder conviction, Murdaugh has pleaded guilty to numerous state and federal financial crimes, facing a 27-year term in state prison and two life sentences for murder, along with an undetermined federal sentence. He remains a party in at least eight lawsuits related to the 2019 boat crash and his financial misdeeds.

The Beach family, represented by attorney Mark Tinsley, welcomed the development, stating, “The family is pleased to be one step closer to not being connected to Alex Murdaugh.”

“It’s unfortunate that all of Alex’s stolen money has not been recovered and paid back to all the people he hurt. The Beach family has never viewed this endeavor as anything other than a fight for accountability and change. We hope that in the future, someone will take stock in what has happened here and do the right thing to not enable and even prevent underaged drinking," they added.