After years of legal proceedings, Russell Laffitte, the former CEO of Palmetto State Bank and a close associate of Alex Murdaugh, received a 13-year prison sentence and was ordered to pay over $3.5 million in restitution for his role in a multi-million-dollar financial scheme that enabled the disgraced lawyer to conceal fraudulent activities. The sentencing, which follows a lengthy and complex trial, marks the culmination of a protracted legal process involving both state and federal charges.
The case unfolded as prosecutors revealed that Laffitte exploited his positions, including as a court-appointed conservator for Murdaugh’s personal injury clients, to siphon over $2 million in fraudulent funds from victims. These transfers were mislabeled as loans, while Laffitte also pocketed tens of thousands in conservator fees without fulfilling his fiduciary duties to the victims.
Laffitte’s legal battle began with a federal indictment in 2022, but his initial conviction was overturned on appeal in early 2024 due to a juror’s improper dismissal during deliberations. In April of this year, he reached a plea deal with federal prosecutors, agreeing to pay nearly $3.5 million in restitution to his victims. His state sentence of 13 years will have eight years served concurrently with his federal sentence, with the remaining five suspended if he completes probation and community service.
The case stems from multiple grand jury indictments that implicated Laffitte in conspiracy, computer crimes, and breach of trust allegations involving three distinct victims. Cory Fleming, a previously convicted accomplice of Murdaugh, was also implicated in the scheme.
Court officials emphasized that Laffitte’s actions allowed Murdaugh to settle fraudulent loans and personal debts, further entrenching his financial crimes. Prosecutor Creighton Waters stated,