Lawsuit outlines new theft claims against North Myrtle Beach businessman Walter Pigg
A North Myrtle Beach lawyer says a disgruntled employee stole company funds for personal use and is now releasing clients’ confidential information.
Walter Pigg, a North Myrtle Beach businessman who was twice arrested last year in connection with embezzling thousands from a rental company for personal use and is under investigation by both state and local agencies, is the subject of a lawsuit that was filed by the Law Office of Stephanie Vaught Little, PC in Horry County on Tuesday.
Pigg was hired last May to perform paralegal services for the law firm but was ultimately fired on Jan. 7 after using the law office’s debit card for personal expenses, according to the lawsuit.
Little, in her lawsuit, says Pigg is now retaliating against the law firm by using confidential information, including client names and addresses, to reveal trade secrets and disseminate false and defamatory statements to clients, the suit states.
On at least one occasion following his firing, Pigg sent a letter to a client of the law firm, according to the lawsuit, and in early February, Pigg, with his lawyer, called an existing client and recorded the call. The suit additionally alleges Pigg made slanderous statements to a third party.
“Pigg knew the information was confidential but disclosed or used the information without the express or implied consent of the Law Office or Attorney,” the suit states. “Pigg’s actions are threatening the confidential information of third parties, such as clients of the Law Office.”
Little, in her suit, says her firm is required to protect client information, and as result of Pigg’s actions, the law firm has incurred expenses, damages, and special harm.
The suit requests the court issue a cease and desist and require Pigg to pay for any damages, punitive damages, attorney fees and other costs the firm has incurred. Pigg must also return client information and be prohibited from communication with clients and making disparaging comments to third parties, according to the lawsuit.
The law firm is also requesting the court issue a temporary restraining order against Pigg, arguing that he is seeking to inflict harm by continuing to disclose the confidential nature of clients’ information and their relationship with the law office.
Past alleged incidents
Pigg, who is currently a suspect in numerous other cases involving his alleged role in unpaid rental proceeds to property owners, has been under investigation by North Myrtle Beach, S.C. Law Enforcement Division and other agencies for nearly a year.
Pigg was arrested last June and charged with breach of trust with fraudulent intent after allegedly stealing over $17,000 from a Homeowners Association for personal use. According to police, Pigg withdrew the HOA money through ATM and debit purchases, without HOA approval, to spend at The Big “M” Casino in Little River and Harrah’s Casino in Cherokee, North Carolina.
He was arrested again a month later.
Pigg, who owned Keye Beach Rentals in North Myrtle Beach, was arrested on July 1 and charged with six counts of breach of trust with fraudulent intent after he withheld close to $25,000 overall in rental money from six property owners.
Pigg, who was responsible for collecting rent from tenants and distributing it to condo owners on a monthly basis, collected rent though personal checks and credit cards, but as of June, no money had been paid to any of the property owners, according to arrest warrants.
Pigg deposited a renter’s more-than-$2,000 check into his personal account and spent it at The Big “M” Casino in Little River and Harrah’s Casino in Cherokee, North Carolina, the warrant states. One condo owner reported they haven’t received any payments since last June, while others said they haven’t been paid since November.
North Myrtle Beach police last year launched an investigation into Pigg after officials say they received nearly three dozen complaints, outlining Pigg’s alleged misconduct and unethical business practices since purchasing Keye Beach Rentals, a 55-unit rental agency located at 601 Hillside Drive, in 2018.
Pigg officially closed his agency last February after his property manager’s license was suspended by the S.C. Real Estate Commission. Pigg later surrendered his business license to the city.
About a dozen property owners who rented condos to Keye Beach Rentals told The Sun News how Pigg failed to pay them on time when he first bought the business, and later refused to pay them altogether. Pigg also restricted owners from overseeing rental activity, double-booked units, charged renters higher rates without the condo owners’ knowledge, and left units dirty, despite charging owners for cleaning services, owners told The Sun News.
Pigg reportedly continued to showcase their rentals and make reservations through the Keye Beach Rentals website even after losing his license and owners taking their business to another rental agency and changing their locks.
The Sun News also spoke with several vacationers renting condos through Keye Beach Rentals who arrived on various weekends to the vacant rental agency only to discover they had nowhere to stay despite having their vacations paid in full, some a year in advance.
According to police reports filed from January through April of last year, vacationers also found their credit cards were repeatedly charged but their reservation was either canceled, double-booked or the unit was no longer associated with Keye Beach Rentals.
The Sun News spoke to Pigg’s lawyer, Kirk Truslow, last February, where he attested that Pigg had done nothing wrong and those who filed complaints were seeking vengeance.
The Sun News reached out to Truslow Wednesday afternoon for a comment and he was unavailable.
This story was originally published February 12, 2020 at 12:51 PM.
