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Former Banker Russell Laffitte Pleads Guilty to Financial Crimes Linked to Alex Murdaugh
A former banker and alleged co-conspirator of Alex Murdaugh has entered a guilty plea relating to his involvement in Murdaugh’s financial misconduct. Russell Laffitte faced several federal fraud charges and has been sentenced to a five-year prison term, according to court records obtained by WCIV.
In addition to his prison sentence, Laffitte has committed to paying $3,555,884.80 in restitution and is prohibited from holding any position at federally insured banks or credit unions without prior approval.
As the CEO of Palmetto State Bank at the time of the offenses, Laffitte utilized his role to facilitate fraudulent activities. He was also appointed as the conservator for Murdaugh’s clients who were seeking compensation for personal injury claims.
A Background of Allegations
Laffitte’s family has deep roots in the Hampton, South Carolina community, having founded the bank there in 1907. This town also serves as the backdrop for the Murdaugh family’s rise to prominence.
During previous testimony, Laffitte maintained that he acted at Murdaugh’s direction, asserting ignorance of the lawyer’s illicit schemes. However, in 2022, he was found guilty of aiding Murdaugh in the appropriation of approximately $2 million from various clients.
Legal Challenges and Overturned Sentences
Nearly seven months after his initial conviction, Laffitte was sentenced to seven years in prison along with a restitution order for $3.5 million. However, in a significant turn of events, an appellate court reversed this sentence in November 2024, citing mishandling of juror selection that infringed on Laffitte’s Fifth Amendment rights.
Following the exposure of his actions in connection to Murdaugh and attorney Cory Fleming, Laffitte was dismissed from his position at the bank. The allegations included their role in defrauding Hakeem L. Pinckney, a deaf athlete who became quadriplegic following a severe car accident.
Murdaugh’s Broader Criminal Landscape
In an ongoing investigation into Murdaugh’s activities, a judge ordered him and Fleming to compensate an insurance company millions after they conspired to misappropriate $4 million from the estate of Murdaugh’s deceased housekeeper, Gloria Satterfield. Satterfield had tragically died following an incident at the Murdaughs’ hunting estate, and the funds were intended for her family’s benefit.
This theft is part of a broader picture involving nearly 100 financial crime charges against Murdaugh, reflecting significant amounts diverted from his law firm’s clients.
A Disgraced Legacy
Murdaugh currently faces a lengthy prison term for his financial offenses, having been ordered to serve 40 years in federal court and an additional 27 years in state court, layered atop a life sentence for the murder of his wife, Maggie, and youngest son, Paul, in June 2021. The jury found that he shot both victims near the family dog kennels, potentially to divert attention from the financial troubles he was facing.
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