
Judge Gergel Triples Damages in Murdaugh Fraud Case, Adding $3.75 Million Against Cory Fleming
CHARLESTON, S.C. — U.S. District Judge Richard Gergel, who previously sentenced Alex Murdaugh to 40 years in federal prison—10 years more than prosecutors recommended—and whose handling of the Russell Laffitte trial led to a conviction being overturned, has once again made headlines. This time, Judge Gergel granted an additional $3.75 million in damages to Nautilus Insurance Company following the conviction of former Beaufort attorney Cory Fleming, a key accomplice in Murdaugh’s elaborate insurance fraud scheme.
On Jan. 9, just one day after a Charleston jury found Fleming liable for helping Murdaugh steal from an insurance settlement intended for the sons of Gloria Satterfield, Judge Gergel signed the order. The jury had awarded Nautilus $1.25 million in actual damages, with only $50 in punitive damages. Gergel’s decision to triple the actual damages under the South Carolina Unfair Trade Practices Act added an extra $3.75 million to the payout, aiming to deter future fraudulent conduct. But will it?
Fleming’s Role in the Fraud
Fleming, Murdaugh’s former law school roommate, admitted to aiding Murdaugh in embezzling $4.3 million from a settlement related to the 2018 death of Gloria Satterfield, the Murdaugh family’s longtime housekeeper. Murdaugh concocted a story that his dogs caused Satterfield’s fatal fall at their Colleton County home. Murdaugh then came out and said that story was a lie.
However, Connor Cook and Patrick Wilson, former friends of Paul Murdaugh have alleged that Paul told them that he pushed Satterfield down the steps. Also, investigator Steve Peterson thinks Alex Murdaugh’s son, Paul, is responsible for Gloria Satterfield’s death when she fell down a flight of stairs in the Murdaugh family home. In the interview Peterson says, “Alex Murdaugh created a narrative to deflect suspicion off his son Paul, claiming Gloria tripped over the family dogs, when in fact he was not present at the time of the fall,” said Peterson.
Attorney Eric Bland, who represents the former housekeeper’s family, disagrees.
Alex Murdaugh then urged Satterfield’s sons to file a wrongful death claim against him and recommended they hire Fleming to handle the case.
Once the insurance companies settled, Murdaugh and Fleming siphoned off the settlement money. Fleming is now serving a 46-month federal prison term, which will be followed by a 10-year state sentence after he pleaded guilty to both state and federal charges.
Nautilus Insurance, which had paid $3.8 million toward the fraudulent settlement, filed a federal lawsuit in April 2022 seeking to recoup its losses. Murdaugh defaulted on the suit, leading Judge Gergel to sign a $14.8 million judgment against him on Jan. 2. However, with court-appointed receivers controlling Murdaugh’s remaining assets, it remains uncertain how much, if anything, Nautilus will recover. They may be able to write off the uncollectible amount as a bad debt expense on its taxes.
Financial Fallout for Fleming
The financial consequences for Fleming are equally grim. His lawyers, Thomas Pendarvis and Chris Lempesis, indicated that Fleming is unlikely to ever pay off the full $5 million he now owes Nautilus. Fleming told jurors that he stopped earning an income in October 2021 when the South Carolina Supreme Court disbarred him. He has since depleted his savings and retirement accounts and has been incarcerated for over a year.
Pendarvis noted that while Fleming might manage to pay the $50 punitive damages, covering the $1.25 million in actual damages and the additional $3.75 million imposed by Gergel is virtually impossible.
In his Jan. 9 ruling, Judge Gergel also determined that Nautilus is entitled to reimbursement for its attorney’s fees. The insurance company must submit an itemized list by Jan. 16, which could further increase the total amount Fleming owes.
Legal Legacy of Judge Gergel
Judge Gergel’s involvement in high-profile Murdaugh-related cases has been closely scrutinized. His handling of the Russell Laffitte case resulted in an overturned conviction due to judicial errors, raising questions about his judicial conduct. In contrast, his sentencing of Murdaugh to 40 years in prison—10 years more than prosecutors recommended—demonstrated his tough stance on financial crimes.
Gergel’s latest decision to triple damages in the Nautilus case underscores his commitment to deterring fraud. However, with Fleming financially ruined and Murdaugh’s assets under tight control, the likelihood of Nautilus recovering the full amount remains uncertain.
As South Carolina continues to reel from the fallout of the Murdaugh saga, legal battles surrounding the disgraced attorney and his accomplices show no signs of slowing down. CC News Network will continue to follow these unfolding cases.
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