Former Palmetto State Bank CEO Russell Laffitte was sentenced on Monday to 13 years in state prison after pleading guilty to a series of financial crimes connected to disgraced attorney and convicted murderer Alex Murdaugh.
Laffitte, 53, faced eight felony counts arising from three South Carolina State Grand Jury indictments, including criminal conspiracy, breach of trust with fraudulent intent, and computer crime. Prosecutors accused him of exploiting his position at the small, family-owned bank to funnel millions of dollars to Murdaugh through fraudulent loans and misappropriated settlement funds.
A Criminal Partnership Built on Misused Trust Funds
According to investigators, Laffitte approved and facilitated more than $2 million in improper loans for Murdaugh over several years. Murdaugh, who appointed Laffitte as conservator or personal representative in multiple legal settlements, allegedly used settlement funds belonging to his own clients—some of them children and vulnerable individuals—to pay off personal debts and sustain his lavish lifestyle.
“In essence, Laffitte was responsible for loaning so much money to Murdaugh that Murdaugh became too big to fail,” said Senior Assistant Deputy Attorney General Creighton Waters during the hearing. “Alex was so much in hock to Russell that Russell was in hock to Alex.”
Laffitte admitted in court that he and Murdaugh misappropriated client funds held in trust accounts, acknowledging he violated his fiduciary duty as conservator.
Sentencing and Legal Consequences
Judge Heath Taylor sentenced Laffitte to a total of 13 years, of which eight years are active. However, the sentence will run concurrently with his existing federal sentence. After completing his federal prison term, Laffitte will serve five years in state prison, followed by five years’ probation and 350 hours of community service. The court also ordered restitution to victims, though specific amounts will be determined in ongoing proceedings.
The South Carolina Attorney General’s Office confirmed the agreement means Laffitte will ultimately serve five additional years in state custody after finishing his federal sentence.
Victims Demand Accountability
During Monday’s hearing in Richland County, a representative for one of Laffitte’s victims told the court the banker deserved a harsher sentence, criticizing him for failing to apologize. Laffitte’s attorney disputed that claim, saying his client had apologized publicly during his first federal hearing.
A Complicated Legal Journey
This is not Laffitte’s first conviction. In November 2022, he was found guilty of multiple federal financial crimes. However, that conviction was later overturned due to procedural errors that violated his Fifth Amendment rights. In April 2025, Laffitte entered a plea agreement on the refiled federal charges. In September, he was sentenced to five years in federal prison and ordered to pay $3.5 million in restitution.
His sentencing marks another chapter in the sprawling criminal saga surrounding Alex Murdaugh, whose dramatic downfall—from prestigious Lowcountry attorney to convicted killer—has gripped national attention. Laffitte is the first banker to be criminally charged in connection with Murdaugh’s financial crimes and is widely viewed as a key accomplice who enabled the fraud scheme for years.
With both his federal and state sentences now decided, Laffitte will soon begin serving time, closing a major legal battle but leaving behind a legacy of breached trust and financial betrayal in South Carolina’s Lowcountry.
By FCCT Editorial Team
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