Russell Laffitte, a South Carolina banker, has been sentenced to at least five years in prison for assisting Alex Murdaugh in moving millions of dollars to hide thefts in exchange for a share of the funds. Laffitte pleaded guilty to eight counts in state court as part of a complex deal with federal prosecutors, which is expected to conclude by the end of October. He will remain in federal prison until around May 2027.
Investigators say Laffitte was among several individuals caught in Murdaugh’s scheme, which involved stealing millions from his law firm and clients in wrongful death and serious injury cases. Murdaugh, currently serving a life sentence for the 2021 killings of his wife and son, admits to the thefts but denies involvement in the murders and is appealing his convictions.
The plea deal requires Laffitte to serve eight years in state prison concurrently with a five-year federal sentence. He may receive credits for good behavior and time served under house arrest since May 2022. Prior to the hearing, prosecutors noted Laffitte sold bank stock to pay $3.5 million in restitution.
Laffitte remained silent during the hearing except to answer the judge’s questions. Prosecutors outlined his involvement in the scheme, but no victims spoke; they will have the opportunity to do so at Laffitte’s state sentencing on October 13. Earlier this year, Laffitte pleaded guilty to federal bank and wire fraud charges after his original convictions were overturned due to a juror misconduct issue.
Both Laffitte and Murdaugh hail from prominent families in Hampton County. Laffitte’s family founded Palmetto State Bank, earning him the title of banker of the year in 2019. Prosecutors say this reputation enabled the fraudulent scheme, with Laffitte collecting up to $450,000 in untaxed fees for moving money and sending large settlement checks to Murdaugh, who was dealing with significant debts and opioid addiction.
Laffitte had been entrusted as the court-appointed safekeeper of settlement funds for Murdaugh’s vulnerable clients, including children who had lost their parents, investigators added.
