After tax evasion charges, who gets Alex Murdaugh's money, SC or his alleged victims?

Now that convicted murderer and accused fraudster Richard "Alex" Murdaugh has been struck with a second round of state tax evasion charges, a question arises: who will reap the financial fruit of Murdaugh's seized assets, the State of South Carolina or his alleged financial victims?

While appealing his two consecutive life sentences from protective custody in an undisclosed, maximum security S.C. prison, disbarred Hampton attorney Murdaugh, convicted of murdering his wife and son March 2, has been struck with even more criminal charges: not paying state taxes on money he allegedly stole from his former law clients and partners.

Unpaid taxes are just the tip of the proverbial, criminal iceberg that includes millions in stolen funds, multiple victims, and multiple lawsuits, but an attorney for several of Murdaugh's legal opponents suggested this week that the State may get a share of the money that is being put aside for the alleged victims.

Will SC try to collect its unpaid taxes from Murdaugh, and how?

On April 25, the S.C. Attorney General's Office announced its latest indictment against Murdaugh: two new counts of Willful Attempt to Evade or Defeat a Tax.

The indictment alleged Murdaugh failed to report roughly $2.1 million of income earned through illegal acts for tax years 2020 and 2021. Murdaugh was previously indicted December 2022 for failing to report $6.9 million in fraudulent income for tax years 2011-2019.

In total, the two indictments allege $9,067,706 of unreported income and $619,391 in taxes owed. Allendale personal injury attorney Mark Tinsley said last week the State will likely attempt to collect those taxes from money the courts have set aside for Murdaugh's alleged victims.

"It's possible that the state is claiming or trying to take funds from the victims," Tinsley told The Hampton County Guardian last Thursday, two days after the latest charges were announced.

The Hampton County Guardian reached out to Robert Kittle, spokesperson for the Attorney General's Office, for confirmation and clarification, and Kittle said that he is looking into the matter. This story will be updated as more information is available.

How much is Alex Murdaugh on the hook for?

Murdaugh, in addition to the double murder and weapons charges he was recently convicted on, is also facing 104 pending criminal charges related to a decade-long, multi-county financial and drug-related crime spree. According to State Grand Jury indictments, Murdaugh allegedly stole a total of $8,789,447.77 from former clients and other lawyers, including his own firm.

In addition to the $619,391 in state taxes Murdaugh allegedly owes on that stolen money, state prosecutors have said there is a possibility of future, federal tax evasion charges.

Emily Limehouse, Assistant United States Attorney, told The Guardian that it could not comment or confirm any pending criminal matters involving Murdaugh.

Murdaugh is also directly named in 11 civil suits in state courts and one lawsuit in federal court, with millions in damages at stake. Perhaps the most significant of those lawsuits is the wrongful death suit filed by the family and estate of Mallory Beach, who died in February 2019 following an alcohol-fueled boat crash involving Murdaugh's son and his boat.

How much money does Murdaugh have to pay for his alleged crimes?

While many attorneys and victims close to the case speculate Murdaugh has managed to hide some money. Following the Beach wrongful death suit, Murdaugh's known assets were frozen and seized by court order, at the request of Tinsley, who represents the Beach family and two boat crash survivors.

The court also appointed two lawyers known as receivers to oversee the control and liquidation of Murdaugh's assets to form a settlement fund for his alleged victims, should they win damages in civil courts. Among those assets were Murdaugh's Edisto beach house and his primary residence, the 1,700-plus acre Moselle property, which were both recently sold.

Moselle sold for $3.9 million, and after payments of legal expenses and $530,000 to Murdaugh's surviving heir, Richard Alexander "Buster" Murdaugh Jr., a total of $2.786 million was set aside for the Beach family and three of the boat crash survivors.

The sale of the Edisto property, other Murdaugh properties and many of the family's personal belongings at an estate sale has netted roughly $1.2 million in the receivership for the remaining Murdaugh victims.

Tinsley said the estate sale alone grossed $157,512.50, and after a commission of $63,005 was paid to the auction house, a net of $94,507.50 went into the receivership. There is expected to be another auction soon for the remaining Murdaugh family property being held in storage units, he added.

While the claims of the state and Murdaugh's many alleged victims vastly outweigh these receivership receipts, most of the alleged victims aren't going without other forms of compensation and restitution.

While Murdaugh personally will likely never make good on what he allegedly stole from people who trusted him, millions of dollars in settlements have been paid to his victims by other parties connected to his schemes, whether knowingly or unknowingly, including local banks and several of his alleged accomplices.

Murdaugh's own family law firm in Hampton, formerly known as PMPED but now operating as Parker Law Group, has borrowed millions to pay back money Murdaugh allegedly stole from his clients, according to recent court testimony.

Hampton County Guardian Editor Michael DeWitt, the Greenville News and USA TODAY Network will continue to follow the ongoing criminal and civil cases surrounding the Murdaugh crime saga. Follow DeWitt on Twitter at @mmdewittjr and support his local and national journalism with a digital subscription.

This article originally appeared on Greenville News: Alex Murdaugh's money: Does it go to SC or alleged victims?